What next
2024-12-06

IIn my previous post, I mentioned that the market could potentially reach $100K, and I also warned of sharp volatility in that region. As expected, the market responded accordingly. Over the last 8 years or so, we've repeatedly heard predictions that Bitcoin would hit $100K, and now it has, much to the delight of HODLers. The big question now is: What’s next? Where are we heading?

I have my reservations about the entire crypto space, and while I might upset some people, these are just my personal opinions on Bitcoin.

To get back to basics, Bitcoin was launched as an alternative to traditional fiat currencies, with a goal of providing a decentralized, transparent, and secure system for transferring value. It was also designed to resist inflation (thanks to its fixed supply) and to give individuals more control over their wealth, without relying on banks or government institutions.

So, if Bitcoin was created as an alternative to fiat, how do we explain its rising price? It doesn’t quite add up.

The truth is, despite Bitcoin’s origins as an alternative to fiat currencies, its price is largely driven by a mix of demand as a store of value, speculation, institutional adoption, and broader economic factors. Bitcoin is no longer just a currency; it’s become a speculative asset without any underlying physical backing.

The fact that Bitcoin reached $100K isn’t up for debate, but the real question is: How many people actually profited from this rally? In reality, like most markets, only about 30% of participants likely made money. 20% probably missed the rally altogether, and the remaining 50% likely bought in at the peak.

As for where the market is headed next, time will tell. However, in my opinion, Bitcoin remains a highly dangerous instrument to trade. Good luck to all those involved.