The Next Bottom to get in on Bitcoin is the $8000 level

As I mentioned in another post, BTC is not subject to the greater fool theory in the long run. This might seem stupid of me to say given the recent runup within the last 12 hours as of writing this post: it broke through 10,000 and then 11,000 a few hours later. This is parabolic, plain and simple. A lot of newbs and amateurs got in over thanksgiving weekend, testing the waters, most out of FOMO (Fear of Missing Out). These hands will undoubtedly panic sell if and when the slightest bad news occurs. The coming flash crash will be brutal and quick. Blink and you might miss it. No, seriously. Smart money that still believes in BTC will use that selloff as a buying opportunity. In my opinion, that buying level will be at or around $8000.

However, the point remains: Bitcoin is a revolutionary type of asset. Despite the short term selloffs that will happen, Bitcoin’s future remains sound. Assuming none of the major world powers don’t take the extraordinary (and anti-free market) choice of criminalizing bitcoin, the cryptocurrency has no signs of going away. What helps me sleep at night with my bitcoin investment are the following factors: Metcalfe’s Law, decentralized trustless networks, blockchain technology, and the ease of use for anyone in the world to become a bitcoin user and contribute to the network. Currently, we are at 0.01% of world population using Bitcoin.  In accordance with Metcalfe’s Law, which in basic terms states that the value of a network increases as it gains more users, if bitcoin adoption rose to even just 1% of global population, that would be 10 times what it is now. And were we to multiply the current price of $10,000 per bitcoin, we get the price target of $100,000 per coin. And as mentioned in a previous post, you can buy FRACTIONS of bitcoin. You don’t need to plop down the full per coin amount. Think about that… and tell me my math is wrong.

As seen below in the list of buy and sell orders on a bitcoin exchange (GDAX, a division of Coinbase), you can see that people are buying and selling FRACTIONS of bitcoin.

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