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RE: Since Mid-2016, Bitcoin has had 6 major bear and bull market cycles

in #bitcoin7 years ago

Some healthy consolidation before continuing upward. Just ask yourself, are more people beginning to doubt the value of their nation's fiat and search for alternative assets? I think the answer is clear and this is a trend that will continue for several more years, if not decades.

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It seems to have taken on a life of its own and while everyone's trying to work it out it just keeps on doing its thing

As long as we calculate the value of Bitcoin in dollars the FIAT currency system is in best health. Or wouldn t you cash out your bitcoin in order to get the dollars out? I would.

Very good point. The fact that everyone talks in terms of dollars tells me we are still a ways away.

Every currency is quotes in terms of other currencies to allow for exchange. We even quote gold in terms of FIAT currencies for exchange purposes. It keeps me from having to pack up oz. of gold and shipping it to you.

I think Bitcoin as well as some others will survive for good reasons.

Bitcoin because it was the first mover and adopted by a "black market". As long as they are willing to use it a measure of exchange of goods and services it will survive.

Steem or SBD survives because it is earned by value added work. These blog post are the product of someones efforts and brains that ads value to someone else. So it is a innovative way to measure effort and then assign value to that effort based on the benefits someone else get from that effort.

Ripple (XRP - Google backed crypto) survives because it offers real value in making the financial markets more efficient. Transfer dollars is generally inefficient as a ledger between banks. They could use gold, that is even harder because of its physical nature. So , at least ideally, something like ripple is fast and can be a proxy for value (as long as you can eventually convert to other forms of currency). Plus organizations like American Express (plus others) are experimenting with it for its intended use. As they become more confident it will grow in value.

These are the kind of things that I look for when researching crypto. Is there a real benefit to someone somewhere. It has to be more than just another currency created by automated systems without real cost.

Yes @maven360, this is the logic I keep coming back to and why I got into crypto. People are looking for alternatives to store their value and that will only become increasingly so.

Great post @jrcornel. Yes, that Dec-Jan $400 billion dollar market cap explosion put a lot of energy into the system and thus a lot to blow off and that's what's happening. Way to keep things steady and focused.