Bitcoin is one of the most volatile assets to hold. Its price fluctuates rapidly and for many traditional traders, they have found it to be too risky. While one makes in the upwards of 20% in a single day, you can as easily lose it. This has brought one fundamental question about it, when should I buy it? Also, when to sell. Well, many analysts say that daily prices are not relevant. And this is why. Bitcoin is a long game asset and not a speculative asset.
Only Speculators Need Care About Daily Prices When Buying Bitcoin
Many are holders that are attracted to the asset for speculative reasons and to make a quick buck. They speculate that the asset will make a leap and they can turn a profit. For them, daily prices are relevant. They need to know the trends, the headlines, and every other metric that affects prices including world politics and economics. But one easy way to ensure profits is by buying lows and selling high. Whenever Bitcoin breaks below key supports, buy. And when it climbs above key resistances, sell. While Bitcoin might stay in certain lows for long, creating frustration and anxiety, Bitcoin always goes back up.
Why Daily Prices Are Irrelevant For The Long Game
For long term holders, daily prices are irrelevant. For them, it doesn’t matter when they buy Bitcoin, they just do. And everyday fluctuations don’t matter. Other than having the confidence that Bitcoin works and has done so for the last ten years, One of the key positives for them is that every year, except 2015, the asset has set a new higher low. And in nearly all of those years, the asset has also raised its fundamentals. Market cap has gone up, network power, number of blocks, adoption, number of transactions and perhaps most importantly, the supply has continued to fall. Additionally, governments have also shown not to be trusted with money, hence the need to separate the two.
In the end, this growth is expected to drive Bitcoin to become an asset of its own class. For some analysts like John McAfee, this could see it reach a value of $1 million. So, for the long term holders and the believers, daily prices don’t matter, all that matters is that it works and that they are buying. If the prices are low, then good, time to capitalize on that and buy even more. Soon all Bitcoin will be mined and then its real value will reveal itself, easily surpassing gold.
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