MY EVASIVE THEORY ON BITCOIN

Bitcoin, popular boss of all the cryptocurrencies; yet I am not intrigued nor understand why everyone in the crypto world literally craves to have more of bitcoin. Well, I am not one of those people who just dive into investments. I like to understand how things work, estimate my profit/stop loss. These few factors set my standards at Hodling of some certain coins or tokens. You will be surprised that my definition of bitcoin is similar to “The gasoline of the cryptospace”. Literally, from this part of the world people who are known to hoard gasoline (PMS) end up getting burnt or experience some huge losses based on the volatility of this substance. Having this idea, I gave my self a bit of distance from the huge acquisition of bitcoins, rather I have some in pieces in different places and I do not take account of them, as they are not a means of investment to me.


My reasons for loving altcoins are the exact opposite of the reasons why I refuse investing in bitcoins. The example of gasoline simplifies this; other less volatile substances are oil, grease, water and even ice: all these are known for stability and less volatile and as such can be kept even on the shelf for almost a lifetime while leveraging on their profitability.




My evasive reasons on bitcoin  


Price volatility


In less than 6 months we have experienced various ranges of bitcoin prices; from $4,349 as at September 2017, then rose the highest ever to $20,089 (December, 2017); a month after this it dropped by $10,000 ; it progresses further down to $4241 barely a year after the BTC ATH (All time high); then plunged as low as $3,441 (January, 2019); it started picking again through the early 2019 to attain another high price of $10,908. Bitcoin touches down to $7950 yesterday, which is just a few months before the second halving. 




All the time US-China colliding OR conniving


There are this constant politics and turmoil between these two countries, they are either in a trade war or trying all their possibilities at manipulating bitcoin either by creating alternative digital currencies as the PBoC or contending with the likes of facebook Libra. I have always been of the opinion that the US government and some of its wealthy class own a vast percentage of bitcoins, and as such is responsible for the various whales and or direct/indirect bitcoin market manipulations. The on-record seize bitcoin by the USA currently sits at 200,000 BTC, you can imagine the off-record ones right?




Bitcoin has a mind of its own


As naïve as this may sound, it is just really funny how regardless of our price and behaviour of BTC predictions; it tends to make us feel you are right and other times you are entirely wrong. Its volatile nature is still responsible for the common saying that you should only invest what you afford to loose (spare funds). It is interesting to know that sometimes its price doubles up only to plunge short or not when people get all comfortable the most. The crypto world is constantly on the edge for bitcoin. This reminds of its similarity of petroleum, regardless of its alternatives, as proven to be in continuous demand globally.




Among others is a shortlist below:


 Regulations of cryptocurrencies globally


Continuous political attacks on bitcoin 


Aggravating Security and cyber-attacks 


Adoption of bitcoin in illicit and terrorism




NB: This article should not be considered as financial advice but my opinion about bitcoin and the crypto-market. It is always advisable to do your own research. 


It is also good to admit that a lot of people have benefited from the volatility of bitcoin and have become wealthy through the strategies and proper research.


Picture: Pixabay.com

COMMENT

30

Cryptovato 1
18 Oct

Bitcoin despite being volatile, is still less volatile than many Altcoins at least in the last months. It dropped around 40%. Some altcoins have dropped over 60%. I would make you one correction in another high price – it would be 13,908 USD instead of 10,908. Trading Bitcoin vs other alts may be interesting but I would personally need to acquire more TA to be successful in it.

13 REPLY

30

preview not available Dotun Awosika
19 Oct

Thanks for the heads up on that correction buddy.
Trading Analysis are basic and essential tools for trading in the crypto space; it helps build a data for of analysis and prediction to pattern and behaviour of the market.

5 REPLY

10

preview not available Jansen Admin
18 Oct

Nice post! And well written in a way also members new to crypto can follow. 

10 REPLY

30

preview not available Dotun Awosika
18 Oct

Thank you for your kind words. I have come to understand that writing in simple terms grants more access to crypto newbies, unlike the expert-written articles in T/A; which I entirely salute the writers.

2 REPLY

22

preview not available Osato Jegede
19 Oct

For me, it's the volatility that makes Bitcoin what it is. If not the price of Bitcoin would have skyrocketed beyond the reach of common man. The presence of a centralized authorities ensures that the trade between demands and supplys are regulated to avoid high volatility. But in the case of Bitcoin, where the centralized authorities is absent, it becomes more beautiful. 

9 REPLY

30

preview not available Dotun Awosika
19 Oct

I love the fact that the crypto ecosystem is indeed a beautiful niche; a perfect check for the mainstream financial industry.

1 REPLY

12

MrBullishSail Crypto Trader
17 Oct

Excellent post, Dotun :), I understand that as an investor, seeing such ranges of volatility can be frightening, however, you have the confidence that everything that is developing in this space and beyond is based on BTC, that supports your investment in the long term, despite its high volatility, on the other hand, we exploit that same high volatility, traders to achieve large profit margins, it is this same movement that keeps the capitalization market moving and that overtime is increasing, not only because the capital of investors or traders is growing, but also because of the adoption of this space and its market by more people.

8 REPLY

30

preview not available Dotun Awosika
18 Oct

You rock buddy, your deep knowledge of bitcoin and the entire crypto world and trading is intriguing. Bitcoin is the power engine but I rather ride along than involved in the engine powering process.

2 REPLY

31

preview not available St3v3 T88888
19 Oct

Nice well written post Dotun, easy to understand for people

8 REPLY

30

preview not available Dotun Awosika
19 Oct

Thank you @st3v3 , I had to put it down the best way for the purpose of we that are actively growing in this world and for the newbies.

0 REPLY

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