Digital currency Bitcoin hits new high before losing S$200 in value in one day

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Which aspect is strange? 

The theory of why the rise (increase adoption; FED accelerated money printing during COVID, increasing money supply; hence, Bitcoin reacted), and what Bitcoin is theocratically worth is out there, for many years; e.g. (1) it's digital gold, it will achieve the same "market cap" of gold, or (2) it could replace the fiat, hence, achieving the same market cap of M2.

Personally, to me, the rise in price just means there are more believers today than 4 years ago; demand outstrip supply, hence, price moves accordingly. 

(not vested; small exposure through Square Inc.)
“If you buy a business just because it’s undervalued, then you have to worry about selling it when it reaches its intrinsic value. That’s hard. But if you can buy a few great companies, then you can sit on your ass. That’s a good thing.” - Charlie Munger
Reply
Which aspect is strange? 

The theory of why the rise (increase adoption; FED accelerated money printing during COVID, increasing money supply; hence, Bitcoin reacted), and what Bitcoin is theocratically worth is out there, for many years; e.g. (1) it's digital gold, it will achieve the same "market cap" of gold, or (2) it could replace the fiat, hence, achieving the same market cap of M2.

Personally, to me, the rise in price just means there are more believers today than 4 years ago; demand outstrip supply, hence, price moves accordingly. 

(not vested; small exposure through Square Inc.)
“If you buy a business just because it’s undervalued, then you have to worry about selling it when it reaches its intrinsic value. That’s hard. But if you can buy a few great companies, then you can sit on your ass. That’s a good thing.” - Charlie Munger
Reply
(12-01-2021, 11:12 PM)Wildreamz Wrote: Personally, to me, the rise in price just means there are more believers today than 4 years ago; demand outstrip supply, hence, price moves accordingly. 

(not vested; small exposure through Square Inc.)

I am of the opinion that the rise of bitcoin is a symptom of the amount of animal spirits in the market. Animal spirits tend to use the actions of the Fed/Central Banks to justify their own actions.

Rather than more believers, I believe these folks are actually speculators at heart. So yes, there are more people believing that they can make money off bitcoin.
Reply
(12-01-2021, 11:12 PM)Wildreamz Wrote: Personally, to me, the rise in price just means there are more believers today than 4 years ago; demand outstrip supply, hence, price moves accordingly. 

(not vested; small exposure through Square Inc.)

I am of the opinion that the rise of bitcoin is a symptom of the amount of animal spirits in the market. Animal spirits tend to use the actions of the Fed/Central Banks to justify their own actions.

Rather than more believers, I believe these folks are actually speculators at heart. So yes, there are more people believing that they can make money off bitcoin.
Reply
https://www.cnbc.com/2020/11/20/where-vi...high-.html

In 2021, there are more believers, speculators, innovation, business models built on top of the Bitcoin ecosystem. These can all be true at the same time.
“If you buy a business just because it’s undervalued, then you have to worry about selling it when it reaches its intrinsic value. That’s hard. But if you can buy a few great companies, then you can sit on your ass. That’s a good thing.” - Charlie Munger
Reply
https://www.cnbc.com/2020/11/20/where-vi...high-.html

In 2021, there are more believers, speculators, innovation, business models built on top of the Bitcoin ecosystem. These can all be true at the same time.
“If you buy a business just because it’s undervalued, then you have to worry about selling it when it reaches its intrinsic value. That’s hard. But if you can buy a few great companies, then you can sit on your ass. That’s a good thing.” - Charlie Munger
Reply


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