“The Greater Fool Theory” focuses on Bitcoin being valuable only if there is a “greater fool” willing to purchase it at a higher price than what you paid. In other words, its value depends on speculation and confidence that others will continue to buy it. However, this criticism does not tell the whole story. Bitcoin is not just a speculative asset; It is also a technological innovation. Its blockchain technology and its decentralization make it unique and valuable beyond mere speculation.
Bitcoin is more than just a vehicle for quick profits. Its decentralized network allows secure and transparent transfers without intermediaries. Additionally, its scheduled scarcity (there will only be 21 million bitcoins) gives it intrinsic value. Bitcoin's growing adoption by financial institutions, businesses, and governments also supports its value. It's not just a numbers game in a speculative market.
In cryptocurrency markets, this phenomenon is common. Investors buy before a major event (the rumor) and sell after it is confirmed (the news). This can affect the price of Bitcoin. For example, the issuance of Bitcoin ETFs could generate bullish expectations, but it could also lead to a subsequent correction.
Projections suggest that Bitcoin could reach $100,000 by 2024. However, these estimates are uncertain and should be taken with caution. The true potential could lie in altcoins (other cryptocurrencies) with smaller market caps. These can offer significant growth opportunities.
Bitcoin will far exceed $100,000, we know that in the community. But that will be in 2025, we have to be patient and accumulate.
Have a wonderful week,
Crypto Tank.
