My quick thoughts on this newest price drop. (trade mining)
So, for the past few months my calls on bitcoin were off more then ever. I thought with the Coronavirus price would jump fairly well. However, prices kept dropping even with the hard fork on the way. So what was wrong? I think my best guess is, the systems are just not in place for bitcoin to be useful. Sure you can do some pretty cool things with bitcoin but i don't think it's systems are ready for everyday purchases or for it to be thought as more of a failsafe/backup asset.
Bitcoin in the near future should see a massive spike probably back to the 15,000 levels before the end of summer, running a more stable price of $12,500-13,000 on average. Forking will have more meaning then ever as it will really pinch margins, and sellers will have to hold off on selling until prices raise or they will be giving up mining. More demand will be seen as the new supply shrinks. Anyway the key for Bitcoin is how you can spend it, where you can spend. A growing partnership program is bitcoins path to greatness. As is anything fiat.
Swings: So why the huge swings, 20k to 5k, then back up to 15k, etc etc. It should be no surprise that bitcoins are as volatile of an asset as any. I am not 100% sure exactly why but my best guess is they learned from Wall street that they can seesaw their assets again and again by controlling the pricing. buy on lows sell on highs again and again, the wealth of the elites in crypto will not allow it to go away. When it drops they will buy more, i like to call it "trade mining". Mining the old way is to slow and does not bring profits like the golden age of crypto once did. So this trade mining has gone of the charts. Even some of the market charts for hive and steemit show this sort of thing is the new normal mining.
Trade Mining: if you own a bitcoin and sell it for $15,000, and many of the huge bitcoin investors sell, the price falls apart dropping it to lets say half. Your $15,000 is now enough to buy 2 bitcoins, by repeating this process, your amount of bitcoins are raising without the trouble of hash rates, electricity or hardware and you can do it in much less time.
Bitcoin to Hit $15,000 before summers end. $50,000 spike inside of 2 years.
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Any thoughts.?