It’s not a tulip to you! – Coinmatics

It’s not a tulip to you! – Coinmatics

Here is why Bitcoin (BTC) isn’t a tulip.

There is a theory among the most popular myths about Bitcoin that the idea of a cryptocurrency is a bubble.

In this regard, Bitcoin is often compared to Tulip Mania, which is a historical period characterized by the tulip buying frenzy in the Netherlands in the third decade of the 17th century.

Long story short, the demand for beautiful tulips of a particular type grew in the Netherlands in the 1630s. The price increased, therefore the demand additionally increased due to the speculators, who started to buy up bulbs at rising prices in an attempt to take advantage.

Initially, the demand was significantly higher than the supply, which was pumping the bubble up. But then it changed, and there were more bulbs than those who wanted to buy them. The tulip bubble popped, leaving hapless flower merchants broke.

Why do people compare the story with the one of Bitcoin (BTC)?

It is so because the price of Bitcoin grows owing to new users.

But this is the only similarity between the two.

Bitcoin is more like gold.

The demand for Bitcoin is growing, but it can’t pop since the number of coins is limited, and the market cannot be overloaded. The limit is 21 million units; there is no way to make more — Bitcoin cannot be cultivated, unlike tulips.

There is no way the bubble can come out. The only possible perspective for limited valuable assets is price growth.

That’s why Bitcoin and its price growth should be compared with gold rather than with tulips. Both Bitcoin and gold have limited supplies, which entail their value.

Generally, it’s quite simple: the supply is limited, while the number of people willing to use it is growing every year. Thus, Bitcoin is sure to face inevitable growth, the market capitalization of which can exceed, by some estimations, several trillion dollars.

The outlook speaks for itself.

And while Bitcoin’s price is increasing, it’s possible to make a good profit on its volatility!

The most accessible and efficient option is to start trading with the help of Auto-trading by Coinmatics, which provides replication of the deals after powerful traders. If you are an experienced trader yourself, Coinmatics offers to make an extra income on subscriptions.

Isn’t it a win-win?

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Published at Tue, 05 Nov 2019 09:18:30 +0000


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