Digital Property Story with DaFIN — Part 9
When should I buy Bitcoin?
Earlier, I offered my parents to buy bitcoin a few years ago, but they never bought it, and my parents said they would buy it at the news that Tesla owner Elon Musk bought it. The next important part is that I was very embarrassed, but I told you it wasn’t too late.
Bitcoin is currently at 25% lower prices than its peak.
Some people create anxiety, saying it is a sign of a decline that began in 2018. Private investors who have recently entered the digital property market are also talking about fears of a decline in communities.
For another volatile asset, stocks, panic cells probably already appeared before falling 25% from peak. However, Bitcoin has always been on the decline of about 30 percent even during the upward trend. This decline is natural for investors with experience in this market.
However, recently there is an interesting view.
“The steady rise in Bitcoin has led to the rise of U.S. institutions, what if they sell Bitcoin in the market?”
It encourages selling by pretending to be concerned that prices will fall significantly if large quantities come to the market. I accept that this concern can be thought of from a piecemeal perspective. This is because, as always, institutions do not consider individual investors at all.
However, we must have a sober eye. Tesla’s stock price rose last week as Tesla bought Bitcoin. When Bitcoin goes up more than a certain price, the institution that bought Bitcoin will be able to sell it. This will increase the net worth of a company’s assets per share. What about other institutions that have watched this? Other institutions will also be interested in purchasing Bitcoin. This is because I thought buying Bitcoin would help increase the value of the company.
One more step, from the agency’s point of view,
“Would it be a good idea to sell Bitcoin to make a profit?”
It’s not like that at all. It must take a long time to sell Bitcoin and buy it again. Therefore, if companies decide that bitcoin prices are at their highest point, it is desirable to think that they will not sell bitcoin at that price, but will short-sell bitcoin on the futures exchange to further increase the number of bitcoin.