System Trading Blog

ImageBitcoin value will crash, even if it goes through bubble phase of tulipomania scenario first. Bitcoin (or BTC) is worth something just because of market participants believe it is worth something. Why people keep buying BTC? Fun of participating in something novel plays a role for some. Greed should be present as the price increase looks like no-brainer to others. Certainly some of BTC value derives not from what it is, but rather what it is not.  What it is NOT: is not a fiat currency that may devalued by “printing press”, authorities can’t [yet] track down or block every single transaction, storage of the value is not dependent on solvency of any particular institution etc.

Video: You Really Should be Buying Bitcoin (a good explanatory video on BTC)

Without any central institution to destroy the value, no oppressive body to track and/or tax it and, generally, ease of transactions…

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