In the financial press there is a lot of talk today about Bitcoin’s crashing. I’ve said before I don’t think it will happen. But why?
- Bitcoins are not traditional currency, it is not affected by traditional currency rules
- Bitcoins are not owned by one country so are not so affected by fundamental news
The main reason!
SUPPLY AND DEMAND
There is a lot of demand for Bitcoins and guess what, a limited supply, this creates a market of increasing prices!
What would crash Bitcoins?
- The blockchain being hacked – not done yet even with a huge bounty
- Governments making it illegal – been tried – more governments are embracing Bitcoin in fact
- A big exchange crash – I think we are through this now.
- Any devaluation of Bitcoins – sometimes we get dips when someone major SAYS something negative, but this will bounce back as it is not really a market affecting “thing”
I’m excited, I’m mining and holding Bitcoins!