Bitcoin’s regular 10-30% corrections ultimately PROTECT the asset’s value, more than they pose any danger
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Bitcoin’s regular 10-30% corrections ultimately PROTECT the asset’s value, more than they pose any danger

Bitcoin’s regular 10-30% corrections ultimately PROTECT the asset’s value, more than they pose any danger

Sharing this Bitcoin rumination I had while taking a dump yesterday. The fact that these corrections – which are large comparable to stocks and other assets – happen regularly to the point that it is an expected, even celebrated occurrence in the world of Bitcoin, to me, this is the strongest evidence that Bitcoin is not “one big bubble”. If you disagree with me, please explain why I’m wrong – I’m very eager to develop a better understanding of this.

Does Bitcoin’s price get ahead of itself sometimes following positive news, to the point that it is temporarily over-valued? Of course. And this naturally creates opportune selling points for whales, traders, and folks that have already made 10X+… yet as the price dips and dips, it has always reached an equilibrium point where the world rushes in to buy the discount – because the world recognizes Bitcoin as a valuable and desired asset. Over time, I believe these dips help shape a more even (that is, uniform) distribution of Bitcoin among those that hold the asset, as the long-time holders and whales give up their disproportionately-accumulated Bitcoin, and the resulting buying opportunities allow this to distribute this BTC more evenly among the rest of the crypto-nerds.

I don’t fully understand the swirl of market forces that generate these corrections, and perhaps my outlook is a bit na├»ve. But I’m starting to think these dips are a natural part of Bitcoin’s growth curve that actually protect the asset in the long-run.

submitted by /u/LiberalMalesSwallow
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