As you may have noticed bitcoin has entered a bearish market as the holidays are upon us. The price of bitcoin has tanked from over $19,000 to now hovering around $13k-$15k. The reason for this side ways/bearish trading is due to the end of the year profit takers. If you are new to trading then you may have never dealt with this before. In the stock market towards the end of the year more importantly the last two weeks investors will take their profits or sell their position at a lose to right off on their taxes or to right off other capital gains. This may be concerning because the price of bitcoin is down for the time being but in my opinion I think more investors are headed into bitcoin towards the new year. I also think that a lot of people have not bought their first fraction of bitcoin because they are unsure of the currency. I believe that after Christmas and New Year's a lot of family members and friends with have the "bitcoin talk" at the dinner table. Some will want to buy bitcoin while others might be interested but do not have the funds to purchase the asset. You might even have to deal with the Scrooge of the table who will try to bash bitcoin and other cryptocurrencies, you can try to argue with them but it will be a lost cause; move on and let them live their live as a nocoiner lol.
Bitcoin Isn't A Company
Yes, this statement is true bitcoin is not a company, however, never is gold. Gold is a precious metal that has a lot of value to the holder, however their are gold companies but gold in itself is not a company. Investors know that gold is not a company however they still buy it and hold on to it because it is of value. Like gold their are bitcoin companies however, bitcoin by itself is not a company. So you sell something does not have to be a company to be worth value, value comes by having a community that backs the currency or adopts the currency by accepting it as a form of payment.
Currencies Only Last 27 Years
Bitcoin was created in 2009, so even if these new currency was a bubble we still have 19 more years for the price to go up. Just imagine how high this "bubble" can go in 19 years! As many currencies have failed in the past at an average time span of 27 years, the US dollar has not. Even though the US dollar goes down in value about 7% a year the currency is still around. In my opinion bitcoin is just starting and we do live in the digital world now which makes me believe bitcoin is here to stay longer than 27 years.
Bitcoin Is The Next Dot Com Era
You will also hear that bitcoin is a bubble, just like the dot com era. The dot com era was the being of the internet, of course their was going to be a boom as everyone wanted to but their business online. The same goes for cryptocurrencies everyone wants to create a new coin just like bitcoin. This is the copycat mentality that is caused by greed. The dot come era reached $5 trillion dollars before it burst and keep in mind every company did not go under. If you can recall Amazon was discovered during the dot com era and we all know where Amazon is today! The same thing in my opinion would happen to bitcoin being that it is the original and best crypto in the market if the "bubble" was to burst bitcoin would survive. However,I do not see the "cryptocurrency bubble" bursting anytime soon, first the entire market is only at a $500 billion dollar valuation which means it would have to go up 10x times to reach the dot com era.
Bitcoin Isn't Backed By Anything
Another common mistake people make is saying bitcoin isn't backed by anything, this statement is false. Bitcoin is a network which means it is backed by myself and all of the other investors in the community. Bitcoin is backed by it's investors and new investors so to find the value the equation is N^2 which stands for the number of new users. As more and more users being to trade and adopt bitcoin, bitcoin will become more scarce since there is a limited supply of 21 million coins. As millions of investors start trading or holding the coin it will make it harder and harder to obtain a coin causing the price to rise. With anything if there aren't any users or new users there isn't any value in the money or service. Here is an example if Facebook had only 1 user the platform would close, because there wouldn't be a community that 1 person would not connect or talk to anyone. As the Facebook platform grew to where it is today it has become more valuable and thus people use it. Just like any social media platform you don't own anything it's all digital but the value comes from the community just like bitcoin.
Bitcoin Is A Rare Breed
Bitcoin is a unique beast. If you are an investor or a believer in bitcoin you understand the value and the potential this currency has. We are still in the early stages of this digital currencies just like we are still in the early stages of the internet. The internet isn't going away anytime soon, and I think this is just the being for digital currencies. For the time being just relax 2018 is going to be a big year for us! #PowerToThePeople
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