Before You Buy Bitcoin... Part 3
This is the third and final part: Before You Buy Bitcoin... In each part I describe a "theory" that helps me look at the cryptocurrency market soberly and analyze bitcoin before buying or selling it.
The first part is "Who created Bitcoin and why?"... We will never know who created it. But those who created it knew exactly what would happen to it in the next 10 years; who would support it, invest in the same marketing and further growth of bitcoin. The regulator that controls almost all exchange and securities in the world (SEC) just let Bitcoin (people's asset) on its platforms, I doubt it very much. Bitcoin is not a random asset and that is how you should treat it when you buy it.
The second part of "Bitcoin Tokenomics"... At first glance it looks transparent and predictable, this is what drives many to buy Bitcoin. But when I look at Bitcoin's history I see a tool that is easy to manipulate, especially if you have the major part of Bitcoin issue in your hands, that's what we will talk about in this article.
History of Bitcoin mining
In the first days and years, mining was solely done by Satoshi(grooming faces). It was not power-consuming at the time and there was no need to have expensive equipment; Bitcoin could be mined by means of a video card inserted in a computer. In the first 5 years there were 15 million Bitcoins mined. What is 15 million Bitcoins from 21 million?
In the first five years, random passengers also get involved in bitcoin mining. Who do not understand the future of this asset and got rid of coins by different methods: someone bought a pizza for 10 000 thousand Bitcoins; someone sells Bitcoins on the exchange for next to nothing; and someone simply getting disappointed in Bitcoin throws his computer to the dump with all mined Bitcoins.
But you as a creator know what will happen with Bitcoin in the next 10 years (how it will develop and who will support it). All you have to do is to create a beautiful legend, like: "Bitcoin is people's asset, anyone can mine it, so it is decentralized (bitcoin distribution is in hands of random people)". But the main issue stays with you (mined by mining in the early years and bought out by fools who sold it for pennies). And when you control almost all of the emission, you can do anything you want...
First, invest in marketing and bitcoin growth, and then lock in profits on a drop from $19,000. While bitcoin goes down, and extra passengers sell bitcoins they bought earlier for $4 thousand, you buy them back at the very bottom, and invest in growth again, and then unload (distributing bitcoins to hamsters at $30-60 thousand per coin). It is possible that those who bought bitcoins at 30-60 thousand dollars won't see such marks anymore. Certainly it can stand in the next cycle and 100 thousand dollars, and maybe 0.
Conclusion: Take sober and fundamental approach to coins analysis; Ask yourself questions... Why this coin you buy?; Where will you buy it?; Where will you fix it?; Why do you think this coin has growth perspectives in future?; Are there manipulators on this coin, if yes, what price did they enter?; etc.
Before you buy bitcoins remember that token originally belongs to someone. There was a project like Solana, not many people know that tokens of this project (emission) were redeemed by funds at $0.04; these tokens were sold to us from $0.65 to $260 per coin. Bitcoin is positioning itself as the people's asset; it wasn't initially bought by funds, it is distributed by mining, but the main emission of 15 million was achieved in the first 5 years, it must be taken into account. Which, since 2017, is dispersed to all those who blindly believe that bitcoin is the salvation of mankind.
