Why did you buy Bitcoin?

There seems to be a bit of anxiety about the current pullback. Many new users aren't familiar with Bitcoins finite and volatile nature. Bitcoin is a long term game.

If you bought simply because the price is rising, then you may be a bit upset right now.

However there are other factors beyond the price that are arguably more important.

1. The difficulty just adjusted to a new all-time-high; miners are piling in to get those last few blocks before the halving.

2. Protocol development and BIP rollouts towards scaling is going smoothly

3. Blocks are consistently full. Some see this as a bad thing. I see this as the popularity of Bitcoin never being higher. Full blocks are an important tool to incentivize miners. If the hashrate falls very low and blocks take a long time, people will spend more to make sure their transaction gets confirmed in one block, which if the fee's get high enough, will bring more miners back.

4. Wallets improperly calculating fee's are being identified and fixed

5. The halving is just weeks away, and it will take a few months before the effects are felt.

6. Global instability rages

7. There are only 21million BTC. We are at such beginning stages of this game it is ridiculous. Are you one in a million, one in 21million? If Bitcoin ever does catch on Globally, the kind of upward volatility we will see is nothing compared to anything we've seen yet.

An upward trend without any pullback creates no resistance points. In this pullback the idea is that anyone who bought several years ago in the 500-700 range had an opportunity to "cash out." These people transfer their Bitcoin to people who have more patience or more stomach for risk. If the knife truly has stopped falling (It could potentially fall to $400 but I really don't think so) then we've created a new higher bottom of $540 over the $435 we had established months before.

Bitcoin is a long term game. I strongly advise any newcomers to either A. Sell all your coins now or B. Set them aside for either a specific date or specific price(s) (high and low) and don't waver from that. If you get caught up panic selling or buying you'll most likely get burned.

I don't intend to spend down my bitcoins for hopefully 10 years still. I do spend, but I always just buy a little bit more than I spend.

And remember; if there is no risk, there is no reward.

If Bitcoin were a sure thing, the price would already be $1million+/coin.

Submitted June 23, 2016 at 07:17PM by 45sbvad http://bit.ly/28ZoJib