Why can not Bitcoin do the explosion everyone expects? Here's why!
Why can not Bitcoin do the explosion everyone expects? Here's why!
There are always flaws and prejudices in the bitcoin industry. Most people assume that this new form of money is something that only young people have and can use. In addition, price fluctuations in Bitcoin, fast turnaround and profit opportunities created by these price movements have emerged as factors that increase the popularity of crypto money. At the same time, this new opportunity to win can cause Bitcoin owners to change their investment mentality. Why does not Bitcoin make the expected explosion? It is creating one of the answers of sorusun.
There are still investors waiting to grab Bitcoin in their portfolio
We can list many reasons why Bitcoin is not yet the main payment system. Investors who made the initial investment in Bitcoin still keep Bitcoins in their portfolio with the hope of seeing even higher values. There has been such a tremendous price increase in the last year that we can tie this increase to all sorts of consequences. For Bitcoin owners, the first and advanced strategies of the employee were confirmed.
At the same time, we have seen Bitcoin prices show a big decline in early 2018. For an investor with an average amount of Bitcoin, this was not a positive development. But Bitcoin still has a good chance of reaching the highest level of all time at the end of this year or 2019. But on the other hand, market players do not seem to think of such an increase anymore. On their hands, they have solid grounds. The volatility that will be seen when you examine price movements since the beginning of the year shows rapid gains and rapid losses in the crypto market. Such a situation would undermine the prospect of seeing price movements that go up tremendously and without breathing.
Why are Bitcoin owners turning their long-term short-term investor profile?
Although there are still many reasons to be Bitcoin-owned, the approach seems to be changing. Investors holding long-term Bitcoin in their hands since the enormous price increase of last year have gone to liquid assets and decided to pursue short-term gains. Although this does not seem like an entirely unusual situation, we can say that in the early days Bitcoin's belief in a little bit of decline. At the same time, the fact that wealth is distributed to more people explains why Bitcoin is still a growing currency.
Bitcoin short-term speculation
When we consider the current Bitcoin price volatility, we see speculation plays a leading role. While this situation causes volatility in the market, it is also the greatest proof that interest in Bitcoin has not decreased. Chainalysis data indicates a change in Bitcoin owners, which we can call small investors. Although this change is not person-specific, it is claimed that these people are generally concerned with the change of mentality due to Bitcoin speculation.
More specifically, the number of long-term owners is almost the same as the short-term speculators. Although there is a gap between the two sides in favor of long-term owners, this can change at any time. It is unclear at the moment whether this will create a negative situation. The transfer of this wealth will take place sooner or later, since it is the natural development of financial markets.
In the short term, the increased liquidity of Bitcoin may cause price reductions in transactions. However, we can say that there is a potential for volume increase before the situation returns to normal. It seems that the upcoming months will be very important for the future of Bitcoin and other crypto money.