Quote:
Originally Posted by NicoleGrey
You don't have to cash the bitcoins in because you can pay with bitcoin. More and more companies are going to introduce bitcoin as a payment method and there will be no need to cash in  |
You thus end up trading fresh air.
You are trading something that does not exist for goods.
This is fine if you buy a house, with bitcoins, as you have a house.
However, the scheme fails when people see the currency go down and panic selling, as it is unlikely anyone will buy, and you are then left with nothing.
It may take months or years, but in time this will flop and many will be left with nothing.
A few will cash out early.
You know like every single market bubble there has ever been.
The key is to get in early, then cash out, even if things still to be going up.
The greedy (most people) join late, and keep hold too long.
You make money from the greedy who hold on, hoping to make it rich.
A bit like the UK housing bubble. Those who are smart buy cheap, then sell later as things are good. The bulk of people buy much later and hold on, then end up making a loss when the bubble bursts.
Bitcoin is a bubble, just like any other.
It may last longer than most, but it will burst, and then people will loose everything.