Its not a very good day if you are a bitcoin investor. The Prices have come down again, even though the popular perception was that it would climb back up breaking this bear market. But unfortunately it didn't happen. I am writing this article/blog to pen down some weird thoughts that I have so lets see what my mind has in store for you :-
- Production Cost :-
- The next bottom for Bitcoin Price could be its production cost. Say if the average cost of producing one Bitcoin is 5000$ then that is the next expected bottom.
- Demand Supply Imbalance :-
The fall in pricing means that their is less demand than production as off now, resulting in price drop. This increase in production has been because of the increase in Mining. When the price falls below mining cost of Bitcoin a large number of mining operations will cease to exist or close down. When the mining starts closing down the production shall decrease.
When the supply decreases and the demand stays the same or increases, the price is bound to move up. Right now 1800 Bitcoins are mined every day. If that value comes down that price will go up.
The closure of Mining Operations cannot be expected if the crash is short term. The crash below production cost has to be for more than 4-5 months or may be a year so that some mining operations shut down.
Eg :- When the Petrol Price crashes due to some reasons OPEC leaders get together and decide how much production to cut so that the price is maintained at their desired levels.
- Alt Coin Bubble Must Pop :-
- The Alt Coin Market is a Bubble and it must Pop. It would be in the interest of the Crypto community if the Alt Coin Bubble pops. Money has to come back to Bitcoin. Only Bitcoin Cash, Litecoin & Bitcoin have any kind of value or brand value attached to them.Apart from Steem and Ripple,i don't see any other Alt Coin fit to survive. Even Ether and EOS, i am not a believer in either of them.
My Prediction for the Coming Months :-
Don't expect to see a massive Bull run any time soon. There might be spikes,if you can, do take advantage of them.
When the price Hits bottom around $4000$-5000$ or even lower start buying and do not buy in one go make your purchase spread over a period of 4-6 months. And then Keep buying till 2020. Yes right don't plan on selling before 2020 buy as much as you can as cheap as you can. But don't sell before 2020.
Important Note :-
I am Not a Financial Adviser, I dont know the future, These are just some random thoughts in my head.