Who decides the value of bitcoin ?
There are so many news about cryptocurrencies these days. It’s really hard to keep track of what’s happening behind the curtain. From the start of this article I would like to say that I am not a cryptocurrency expert or guru or have any insight on what is about to happen or not. With this article I am trying to promote my view and hopefully the bigger picture some of you might have missed.
Judging from the beginning and where Bitcoin and other cryptocurrency are at the moment, it’s clear on how much news influence the core value of the blockchain itself.
The value of an object or service is given by people and by the people. You know the old saying any publicity is good publicity ? well it seem to have worked for bitcoin and other cryptos aswell. When bitcoin starte to appear in the media more often it’s value rised and rised and everybody was jumping into the bitcoin train and that’s exactly what made its value to rise.
Bitcoin and every other cryptocurrency or currency value is only given by the amount of energy the people are willing to invest. This energy is in the form of belief, material investment and social construct.
When a “chain” [ pun intended ] of bad news hit the media outlets, some people decided to act upon it and so devaluing the coin. Because of the late so called investors who suffered loses and probably never want to hear about bitcoin again, we can see in the google trends graph that if the interest in the coin is low and people are being negative about it, this made even big investors “pull out” leaving the coin at a steady 7-8k $ currently.
I believe this is not the kind of article you were expecting but I just wanted to point out my view of what I consider to be the bigger picture. I am not an investor but my personal opinion is that when the hype will die down and something a bit more interesting will occupy the media for a set period of time.. that is when we are going to be able to establish a clear view of where the value of the bitcoin is situated.
I personaly believe it does have the potential to go up 100 folds and the potential to collapse in matter of hours and like anything in this world you can’t be 100% sure about anything so the best advice I can give is to follow your gut feelings it will probably tell you more than any external source out there.
Namaste
