The question when is the best time to buy bitcoin can be complex to answer, but the analysis house CryptoQuant can partially clarify this doubt. But before that, you need to understand the differences between price and value. Pricing is how much an asset costs, an objective metric; while the value is subjective and is defined according to the values and ideas of each person. For example, the value of water for a person in the middle of the desert can be much higher than that of 1 kg of gold, despite the price of 1 kg of gold being higher than that of 1 liter of water. In this sense, Ki-Young (CEO of CryptoQuant) brought an analysis of the “value x price” of bitcoin.
“If I put it on a scale of 0~10 for the Bitcoin price in the valuation, 0 meaning the bottom and 10 being the peak or the top, we are currently on the scale of 3 or 4. It’s a good buying opportunity on a horizon. investment of ~2-3 years, but that doesn’t mean it can’t drop to 20k~30k.” said Ki.
Does it make sense to buy bitcoin now?
Anyone can tell you that you should buy this or that asset, and if you don’t like investment recommendations then we’re on the same team. However, Ki-Young has some fascinating points about the price of bitcoin. One of the most intriguing data that support the claim that it refers to the number of holders in the long term; i.e. people who are holding bitcoin.
“We are tracking institutional wallets that came in last year and they have not sold any Bitcoin so far. The rookies who entered the bull market and are not selling these coins to other rookies are now evolving into long-term holders.” Ki-Young stated.
What does that mean? That bitcoin’s thesis of being a kind of store of value/digital gold is actually working. It’s the famousself-fulfilling prophecyy’ or self-fulfilling prophecy, in which a belief that something future will happen triggers the realization of the belief itself. of the type. In fact, ‘self-fulfilling prophecy’ is an area studied by economists and sociologists. Want an example? A bank run is an event in which people usually hear that a certain bank is in trouble, so they decide to withdraw money from the bank, which in turn begins to face problems due to lack of liquidity. Comic strip meme about self-fulfilling prophecySo does this mean bitcoin could reach higher values? Perhaps, the more people believe the thesis that it is a store of value comparable to gold, the greater the chances of the prophecy coming true. A good indicator of this is the number of long-term holders. Therefore, the CEO of CryptoQuant is not an insane person when he says that buying bitcoin at R$200,000 can be a once-in-a-lifetime opportunity, on the contrary, the market value of bitcoin would have to rise at least 13 times to reach gold status. physicist. I’m talking about 1 bitcoin being priced at over R$1 million. For bitcoin holders, its value is much higher than the current price, creating positive feedback for the prophecy to come true. I want your opinion, does it make sense to buy bitcoin now? Leave it here in the comments or on our twitter or Telegram channelNovaDAX is full of news! One of the largest cryptocurrency exchanges in Brazil has now ZERO withdrawal fees in real! NovaDAX also counts zero fees for Bitcoin transactions and more than 110 listed currencies, with cash withdrawal available and high liquidity. Cryptocurrencies with the best rates on the market! Simply activate the free Novawards program and enjoy reduced rates of up to 75%. Discover the NovaDAX Card and order yours now.