Hi! What a great concept this is.
I'm substantially invested in cryptocurrency (although I'm not playing in the big league) in proportion to my savings. I believe in it and I'm staying in.
I'm dismayed at some of the wild fluctuations. Not the effect of ordinary people buying and selling, but the ones resulting from manipulators. Those who push the market up and down and don't care who they damage and have the capital and connections behind them to do it. They buy big and post positive news to encourage everyone else to buy then they short and post negative news and start selling to cause a stampede to sell, then when the currency reaches a new low they start all over again.
In my humble opinion, given the exponential growth in newcomers into crypto and taking into account the increase in the number of new currencies, the value of established coins should steadily be climbing on a week to week basis. It keeps getting smashed and not by you or I . So where do we place the blame?
I've read that one Bitcoin could reach one million dollars in value. That's great but why are they saying it? In actual fact if all the people on the planet (7+ Billion) held some Bitcoin, it could go to a billion dollars $USD. A big name comes out today and says Bitcoin will go to a million dollars per coin. Tomorrow an even bigger name comes out and says anyone who buys Bitcoin will crash and burn. Then a government steps in with a threat of shutting down an exchange or forcing people to reveal their crypto assets to tax them. The whole market cap at 30 June 2017 was tiny. Hardly even on the map. Why are we suddenly suspecting large numbers of people of tax evasion (yes, I'm aware of the anonymous crypto accounts in South Korea). I'm also aware of the large contingent of the elite who have been revealed to have bank accounts in tax havens and have had for many years. That took a long time to come out and has suddenly gone quiet again.
A few weeks ago the Australian dollar went from 1.33 AUD/USD to now 1.25. Big fluctuation, but no panic news? When crypro does that, it's the sign of the bubble bursting?
Well, I haven't figured how to fight back yet. Probably can't. What I can say is we are being manipulated. I am wary of both extreme bad news in this sphere and extreme good news. I see it as the same hand slapping me twice. As I stated previously, with the over enthusiastic good news plus heavy buying at low prices, they push the market up. With the bad news combined with placing a short and selling, they push the market down.
I predict that in the long term banks and governments will try to control cryptocurrency. The fiat system with its fractional reserve mechanism works well now. They keep a million in reserve and lend out ten million but long static loans also depreciate in outstanding value with inflation. Imagine loans in cryptocurrency? Issue any amount you want and the loan is rigged to go up in value by a small constant rate. It is built in extra interest and taking advantage of inflation. Win, win, win.
Anyhow, I hope I haven't bored you or made you laugh with this (although my Dad used to say - you have to laugh!).
By for now. Stay disciplined and like everyone says - don't over commit!!!!
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