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RE: Bitcoin Value Down To $8000 But Will Pump High Very Soon
I definitely don't think this is the end of Bitcoin. It's going to increase drastically again.
I feel there are way too many people who want to support a decentralized currency for it to just fade away already, despite all the people who are short term traders.
People claim that bitcoins are like tulip bulbs. So I tried to imagine what it would have been like to live through the real tulip bulb market. This market arose during the beginning of markets. The first company East India Trade Company was a major contributor to the birth of modern markets. They were new and people didnt have a full grasp of what trading markets were capable of, so people trade shares in the first companies, and began trying to use the market to determine the price of goods. When trading in livestock, company stock, and produce, you can gain a real value for those items. When trading in more conceptual items like flowers, people can ascribe aspects to them that may make them rare, but not necessarily high value. What does a Tulip really produce? And I think that was the argument that shorters had in the market at the time. AKA people who sold high then explained to everyone why the market should go to 0.
In the case of Bitcoin -- BTC most certainly has value. The value is in using it to bet against the USD. Also BTC supports innovative technologies. Its more inclusive and transacts more freely.
So in the case of tulips, they had no recourse. They couldnt say "But this tulip can be transferred across the world, its able to be traded instantly and accessibly for other tulips (etc...)" If that were possible then maybe Tulips would have been a successful market.
I'm sure if we told people that BTC could only be planted in the ground people would be equally skeptical as early dutch traders.
yeah,it's just a beginning