I've been talking recently about how appealing bitcoin is from an investor standpoint, since it has relative value and volatility to neutral goods that are dependent on many factors. It has exceeded my expectations.
Tonight has already remarkably displayed several things in relationship to macroeconomic trends. Tonight's about Asia. People of all nations have the potential to make a lot of money.
The true potential of cryptocurrency when it's implemented on a global scale, is quite possibly a stabilizing force to any one nations economy--just as any one nations economy can stabilize bitcoin, in the event of a single nation's economy failing.
This is really interesting because it's fueled mostly by the little guys...not the big guys. The whales will always set the movement trends, but the little fish can make money by swimming with them.
What I mean is this...
In the event of single nation economic crisis:
-
Whales can "swim" away from their nation's currencies by liquidating cryptos into something more neutral or valuable.
-
This triggers the sells, which is also when the little guys should be selling using one of their wallets. Over time it should always be at a premium from when they bought it.
- This concept is what I mean by "Swimming" which, some people might have also described as "psychotic volatility"
- Really though, it is a means for mass little fish to make raise their wallets at the same time as the whales
- Whales from other currencies can swim towards the nation in trouble by swooping in when the coin price is low, thereby triggering the little fish to start buying with them
-
For the little fish, they just keep ahold of their wallets...and follow the whales until they change direction
- Little fish can buy with one wallet, sell with another
- The more wallets the little fish have the faster they can swim
My above scenario is only talking about if one nations' currency is failing. Tonight is important because Asian stock markets falling will also drag down bitcoin. Tomorrow evening we'll find out for certain how the coin will react in the short run if multiple nations are failing.
It's a two way street though...
No comments:
Post a Comment