The concern I get the most from people about Bitcoin is the concern that it will get banned by governments around the world. With as much adoption Bitcoin has reached, this will not happen. At this point, Bitcoin can not be stopped. It’s too decentralized and has too much force.
Governments around the world are trying to increase their dominance and power over other governments. If a government were to ban Bitcoin they would be shooting themselves in the foot in terms of future power. Other countries would take the other side and be very open and friendly towards Bitcoin. This would then attract talent, money, resources, etc. to that country making it more powerful and wealthy. The Bitcoin network would continue to grow and strengthen and the government that tried to ban Bitcoin would eventually have to reverse the ban.
It makes sense why people are concerned why governments would want to ban Bitcoin, especially the United States. The U.S. Dollar holds the Reserver Currency status and they can basically print money continuously. They don’t want to give up that power. But now with so many public companies holding Bitcoin on their balance sheet as well as companies like Fidelity, JP Morgan Chase, Mass Mutual, PayPal, etc. there are too many influential people at top financial institutions that would not let a ban of Bitcoin occur.
Could governments try or threaten to ban? Yes! And that would crash the markets, but only temporarily. The whole concept of Bitcoin is that it is decentralized. There’s no single point of failure, it’s here to stay!
As you see Bitcoin hit all time highs, I’m sure there’s a mix bag of emotions. On one hand, if you already have Bitcoin you’re ecstatic because you have more money and your investment is paying off. On the other hand you’re kicking yourself for either selling too early (like me) or you just didn’t buy as much as you’d like (like everyone). Investing in Bitcoin takes a lot of emotional control.
It’s important not to FOMO in on price spikes and even worse, you don’t want to push the panic sell button when it does go down a lot. Remember, Bitcoin is volatile which means it goes up AND down! Sometimes it feels like Bitcoin will never go up and other times it feels like it will never go down.
I’ve been trying to trade Bitcoin for 4 years now, and if I have one piece of advice, just buy periodically and don’t sell. If you have sold and you’re waiting to get back in, take your medicine and slowly buy back in.
Weekly Price Analysis
At this point, I wish I knew. It sure seems like Bitcoin will continue to go up forever. That is typically the point where Bitcoin retraces. If we do get a pull back, I’m expecting the bottom to be around $19k.
I think January and February there could be an alt coin run. This means coins like Litecoin, Ethereum, Ripple, YFI, etc. will do well, while Bitcoin ranges.
Whatever happens, it will be volatile. Best of luck!