Couple of days ago, I laid emphasis on how Bitcoin is being treated mainly as a Store of value than a currency necessary for necessary for transferring money over the internet via a decentralized network. My post welcomed diverse and interesting viewpoints about Bitcoin Utility. With many claiming that Bitcoin has “Subjective use”.
While my post has not yet chopped a week it appears my assertion about Bitcoin being used mainly as a Store of Value or Investment was true after all.
Reasons!!
All of a sudden Bitcoin price spikes from 6.5K to almost 7.4 + K on 17th of July, 2018. The price is currently exchanging above $7,400 and is aiming for $7,500 in the short-term.
Effect on Investors
1.Investors who sold their Bitcoin when the market was red are probably cursing and wetting their pillows now with tears.
2.Investors who held onto their Bitcoin with the hope of it rising are also probably twice as excited to earn outrageous profit on their investment.
Effect on the Ordinary/ Ideal Bitcoin USER.
1.The ordinary person cannot purchase the coin to conduct a simple over the internet
2.The ordinary person cannot trade in Bitcoin, because fees associated with exchanges increases with increasing price of Bitcoin.
3.The ordinary person will perceive Bitcoin to be used mainly for investment by those who can afford.
4.These and among others.
If Bitcoin is not influenced by monetary policy, inflation rates and economic growth measurements, what explains Bitcoin’s sudden rise in price?
My Opinion
In my opinion, I believe that, in spite of factors such as
1.Supply and Demand of Bitcoin
2.Number of competing cryptocurrencies
3Regulations governing it sale
4.Number of exchanges it trades on.
Identified to have significant influence on the market price of Bitcoin, I largely attribute this astronomical spike in Bitcoin price to its INTERNAL GOVERNANCE.
Personal Quote
If the people in charge want to make a fool of you, they suddenly DUMP the coin so you sell the little you have been holding onto, so that bigger fish can purchase and add up to their funds.
If the people in charge want to make the bigger fishers smile, they suddenly PUMP to a market price that will yield outrageous profits
Internal governance decides and regulates demand and supply, so demand and supply bullshit is out of context now.
Internal governance obviously defines the regulations that governing the sale of the Bitcoin, hence regulation governing sale is no factor to talk about
Number of competing currencies and number of exchanges it trades on obviously has no strong sale in Bitcoin price. This is because
1.Bitcoin price affect any competing currency
2.Bitcoin price determine the charges associated with Bitcoin transaction on exchanges.
The above is entirely my opinion, Help me learn more if you disagree or agree.
Thanks everyone for supporting (upvotes) me to be able to take part into the byteball's party...!