4 ms·
>A big realization of mine the past few weeks however, is that with the decreasing difficulty curve, the price of BTC will simply sink lower and lower. The goo
by throwawaylolx 8y ago
>A big realization of mine the past few weeks however, is that with the decreasing difficulty curve, the price of BTC will simply sink lower and lower.
The good news is that if you posses this kind of insight into such an unpredictable stochastic process, then there are plenty of financial instruments that allow you to make significant profits on your big realisation.
- dragontamer 8y agoI haven't made any "big" realization, because the logic I stated earlier doesn't necessarily imply an upwards or downwards direction. Look: the inverse is ALSO true with bitcoin. When the price rises, more miners join, raising the difficulty, raising the price of bitcoin. And as I stated earlier: when the price falls, miners leave, dropping the difficulty, dropping the price further. If there was an actual trade I was going to make, it'd be that BTC will remain volatile. Except everyone already knows that fact, so there really isn't anything novel I'm proposing. I'm simply noting that the momentum trade is probably stronger in the BTC world than in typical financial instruments.