With the price of gold and silver rising, a question often comes up: Will bitcoins keep going up? And today almost three years into its existence, we have finally gotten answers. After long months of price drama, and constantly coming up against insurmountable resistance levels, finally, after much speculation and much huffing and puffing, the answer was revealed. In this article we are going to discuss what’s actually going on with Bitcoins.
In the time since this announcement was made, there have been some interesting things occurring on the internet and on the streets with regard to Bitcoins and their future potentials. First, you will discover that many people do indeed understand that they will be able to pay for items or services in Bitcoins anytime within the next two to five years. There are those that even consider it a matter of fate. As soon as a particular limit is reached, they say that the Bitcoins that remain in circulation will then automatically be destroyed. While these are both interesting theories, the truth is that they are just that – theories.
But what about the future of the price of bitcoins? Will they be able to withstand the inevitable, the crash? One thing that must be mentioned about the prediction of a possible future collapse of the bitcoin price increase is that it is actually a non-permanent thing. It is only a temporary fluctuation that will go away once the bubble has burst. What may happen is that as the economy improves worldwide, more people will be able to purchase or sell larger amounts of bitcoins at one time.
So, how does all of this pertain to our prediction of an impending collapse of the price of bitcoins? The simple answer to that question is that we do not know. In fact, no one really knows for sure whether or not they are correct. However, there is a very good chance that we may see a decrease in the price as a result of quantitative easing, and the resulting boost to world economic strength.
How do we arrive at this prediction? We arrived at this prediction by looking at the past, and the history of trading in the world of currencies and exchanges. Specifically, we looked at the last three major economic cycles, which were the pre-IPO, dot-com, and the housing bubble. Each of these was characterized by massive price increases in the run up to trading, followed by large decreases afterward. For your information, during the last two of these cycles, there were no major central banks in the world that were using any form of external intervention to influence market prices.
So, in the current political climate, will investors also be putting their money into currencies that are not governed by strict policy measures? This would seem to be the most likely outcome of a future price increase in the price of bitcoins. If you think about how things change when the stimulus package is announced, you might realize that things get even worse. Because of the additional money that is pumped into the economy through Quantitative Easing, we get more money, which leads to higher spending, and even more investment. As you can see, this type of increase is impossible to avoid.
At this point in time, we have noticed a strong pattern in the rise and fall of many successful trading platforms in the world of exchange. The pattern that we see in the rise and fall of several exchanges is quite similar to what we see with the bitcoin market. In short, if you want to make a very intelligent prediction, you should remember that trading in the future of the global currency markets is not entirely dependent on governmental intervention, and central bank intervention. There are some forces beyond our control that can cause major shifts in the price of any given asset. Will bitcoins continue to go up in value?
I’m personally not very concerned about the future of bitcoins or the decentralized authority model. My main concerns lie with the potential abuse of government intervention if they attempt to manipulate the value of the currency. Even if they don’t attempt to do that, the governments of the world will use their printing power to print more worthless paper currency, and then they will dump it on the market in masses. You might call that an attack on the validity of the currency system, and I don’t think anybody ever wants that. Instead, I hope that you will keep these two considerations in mind as you make your own predictions about the future of the cryptocoinage protocol, or anything else you might want to trade.