It’s time to say good bye to Bitcoin predictions, because you are going to have a hard time making a profit in the world of this revolutionary virtual currency. With such a highly volatile price and a negative impact on the wider financial markets, the sole purpose of Bitcoin predictions is to create unrealistic expectations.
In the market of trading currencies, the currency of the United States of America is a standard by which all others are judged. No wonder then that many people are intimidated by it. With the likes of China, Russia, Iran, North Korea and even Brazil all vying for a piece of the pie, the way that people view the US dollar seems to change more often than they change clothes.
This fact makes it very difficult for investors to understand how to accurately judge the future of the American dollar or the financial markets. You see, Bitcoin predictions put too much emphasis on fluctuations in the current price of the currency itself, which will be reflected in its cost of operation.
They also do not take into account that the new currencies created will soon become obsolete. This is not to say that Bitcoin predictions should be considered something to be laughed at. People are going to trade the currency of the United States of America and it will never die.
We have to also understand that Bitcoin predictions do not take into account the incredible growth rate that it has exhibited over the past few months. Instead, it is based on the price of $1.00 per coin.
This means that when the price increases, investors are going to be very happy, and when it drops, they will be very upset. Don’t get me wrong, they will still take the opportunity to make profits by buying and selling in order to correct their losses. However, it is going to take a lot of work to get it back up again.
Now the word ‘predict’ implies the idea of predicting the future. However, there is nothing to predict with Bitcoin. It is very hard to determine what the future holds.
The only thing that is certain is that the American dollar will always remain the most valuable currency in the world. Whether it is used to purchase goods or services or to speculate on the price of one currency against another, there is no other currency in the world that can compare with the US dollar. There is nothing else that comes close.
The truth is that the dollar is so strong because it is backed by the gold standard. The fact that the world’s economy is headed towards disaster will do nothing to affect the dollar because it is essentially a fiat currency.
Fiat currencies are governed by laws that the governments of the world impose. When the value of the American dollar drops, the value of gold will not change. There is no outside influence that will make the price of gold go up.
In the event that the fiat currency of the United States of America becomes worthless and has to be replaced, gold will not be affected. After all, how can it? It has been around for centuries.
One should also remember that the US dollar is not the only fiat currency in the world. The currencies of the United Kingdom, of Japan, of the European Union and even the Australian Dollar are not backed by anything of value.