Quote:
Originally Posted by Regulus
Nothing goes up in a straight line.
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Indeed. There will be 'corrections'; there always is, but that only really matters if you're 'shorting'. If you're 'long' Bitcoin, just "hodl" on and enjoy the ride. I've been a long investor since the days when a whole Bitcoin cost just a few hundred Dollars.
I'm hopeful of a big price correction, because I want to buy more, but unfortunately I suspect we might revisit $17K at best. A lot has changed since the near-$20K rally 3 years ago. Back then the bull-run was driven almost entirely by speculation and FOMO -- it simply wasn't sustainable. This time around there are a lot of factors driving the price and a lot more investors, not just hedge fund investors but banks and other institutional investors, along with millions more private investors.
The price has been due an upward breakout for some time, with milestone prices being the main psychological barrier holding it back. Given Bitcoin's scarcity, the cost to mine and the increase in demand, I think $20K is cheap. And when you factor in the pandemic, the state of the world economy and the huge amounts of money the banks have been printing lately, I think we can expect a 10 or 20-fold increase in BTC's price in the not-too-distant future.
With negative interest rates looming and the inevitable crash of fiat currencies brought on by hyperinflation, this is only the beginning. I mean, sure there's gold (and other shiny metals), but you can't (easily) carry gold around with you, or use it to make payments globally and instantly. The internet needs Bitcoin and the internet always wins. It has disrupted, devoured and, in some cases, devastated, every industry it has touched (music, movies, telecoms, retail, etc). Now it's coming after the banks, with a product they simply can't compete with.
Edited to add:
Guggenheim Partners CIO Says Bitcoin May Go To $400,000
https://www.investopedia.com/guggenh...400000-5092899