By Joe Megan
Should I invest in Bitcoin?
Whatever I say should not be used as a financial suggestion.
Who is saying, Bitcoin must be considered.
And with Bitcoin cross the $ 10k threshold earlier this week, no wonder people think it is bubbles. It fell below $ 1,000 in June this year, and really skyrocketed since then.
Investors tend to poopoo cryptocurrency for a very fluctual market. However, with volatility, a drastic profit margin appears. In less than 6 months, Bitcoin has an increase in value of more than 1,000%.
For many, a sign must be bubble. To others, this is a unique opportunity to make a lot of time in a short time.
But let’s retreat for a while. Think about it in terms of economics. When you look at the bidding graph and request, you see that as supply increases, demand is reduced. And as decline, demand increases.
This is known as a reverse relationship.
Requests are made through something called “scarcity”. Scarcity means being short. Think like water in the draft. There is a little water available, and thus demanding a drastic increase.
On the other hand, rain during the rainy season is very excessive. And people don’t want to have anything to do with more water.
This is an example that you see in real life, but let’s see scarcity, in terms of Crypto.
There will only be 21 million Bitcoin mined. In the world, there are around 33 million millionaires.
Even if every millionaire wants Bitcoin, it’s impossible. There are no Bitcoin enough to get around.
Scarcity of building demand.
Now, in the United States (and other rich countries), people do not need to see Bitcoin as something other than investment. But the mindset failed to take into account those affected by the economic crisis.
Consider Venezuela. They face more than 4,000% inflation. Their fiat currency is basically useless. In August 2015, there were around 450 companies that received Bitcoin. In November 2016, there were more than 85,000 who received Cryptocurrency.
That one year-old stat, and Venezuela continued to be disturbed by the spiral of economic death. So, the amount is definitely higher.
In fact, more than 100,000 miners have entered the game in this country. Bitcoin is more stable Fiat Venezuela, and thus is seen as a decent form of currency.
