I dont mind a gamble on speculative investments but I just dont get cryptocurrencies - what are they actually based on? Simply supply and deman?
If we look at the fundamentals, the last 24 hours have seen one very encouraging piece of news. Yesterday, on the 15th of March, Lightning Labs launched a beta version of the Lightning Network; developed for the main Bitcoin network. This is, of course, excellent news for Bitcoin. It shows us that developers are looking at every possible solution to Bitcoin’s scaling problem. Nevertheless, I still think that even if the Lightning Network turns out to be a viable solution to the scaling issue, it will need time to prove its worth; specifically, that it can handle bitcoin transactions without any problems. Because of this, I don’t think that bitcoin’s price will immediately go up whenever a solution to the scaling problem appears. In live currency converter bitcoin’s price has stabilised around the 8,000 USD mark. Taking all the above into consideration, I’m going to stick to my position that if you’re thinking of buying bitcoin now, you should only do so if you plan to HODL for a very long time (at least 2-3 years) and you won’t start panicking if the current price undergoes a correction of 30-50%. If a correction does happen, I think the optimum price at which to buy bitcoin is somewhere within the range 5,000 – 7,500 USD.
