Why is Bitcoins Going Up and the Rest of the Market is Doing Fine
In this article I’m going to talk about why is Bitcoin going up and the rest of the market is down. In the Financial District in New York there is a very large office building that was once home to CitiBank. When the economy fell on bad timing it took CitiBank with it. When the economy recovered they left that building and bought another building and they are still growing.
If you look at how technology progresses the same thing is happening with how the Financial Industry reacts to what is happening. When you have something like the Internet this thing called the Web and when people start to realize that it’s a good thing, then people can start to use it for good instead of bad. The same principles are at work here. When the why is bitcoins going up and the rest of the market is down you can see how technology drives the economy and it’s likely to continue to drive the economy.
So you ask yourself, “Why is bitcoins going up and the rest of the market is down?” It’s simple.
The people who have already figured out how to use the technology are going to get a high price for them. People will be competing to get their hands on these valuable things. There will be a high price because there will only be a limited amount that will ever be produced. When there is a high price, it means there will only be limited to supply and the demand for it will be high.
The supply and demand concept apply perfectly to the Financial Market. When people realize that there is a high price for something it causes a rapid increase in prices. This is the same idea as with the Forex Market. People will flock to the market because there is a chance to make a lot of money and a risk to lose it all. This is why you see people jumping on and off the bandwagon and price movements can be wild.
One reason to use the bitcoins for investing is because they are easy to obtain and you don’t have to worry about limited supply.
You can’t just say that you want to put some money in the Bank of America but that you want to invest in the Stock Market. Someone would try to talk you out of it. If you put some money into the Bank of America they could take your money and make profits off of it. You wouldn’t want that to happen with the Bank of bitcoins. This is where the risks come into play though.
Since there is no physical commodity the supply and demand concept don’t apply here. There is no ceiling to the price of bitcoins. In fact they are likely to get higher as time goes on because more people realize what an awesome technology this is. More developers come out with applications for the Internet, which will hopefully raise their demand and value.
Another reason to use the bitcoins is because you don’t have to worry about any high margin or high risk in this market. You can speculate all you want but there is no way that you can become rich. All you are going to do is speculate and see what the market says. Since this is a high risk high reward market you should diversify your assets. You should keep in mind that the price of a coin is set by supply and demand. If there are more buyers than sellers then the price goes up.
The last reason to use the bitcoins for investing is because they are unregulated.
Unlike a traditional stock market where there is a very clear-cut system of how the prices are set you don’t have that with the bitcoins. This is a nice benefit for people who do not wish to follow the standard rules. Even though you can buy and sell all you have to know is how many units there are at any given moment. The only rules that have been set are those that the government has set down, which is why is bitcoins going up and the rest of the market is doing just fine.