3 Biggest misconceptions of Bitcoin pricing
Region: Europe
Sep 2, 2017, 10:00:39 AM Published By Wirex Team
Bitcoin is like a temperamental teen adolescent. Up one moment and the life of the party. Then down the next... and were all holding our breath walking on eggshells. Feeling misunderstood, misinterpreted and unappreciated. Ironically, so is Bitcoin. Bitcoin is extremely volatile, and when it comes to trading bitcoin, people often misunderstand, misinterpret and miscalculate. A common phrase floating around lately...
Buying bitcoin If you bought $500 of bitcoin on June 23, you have 0.1 of a bitcoin. This doesnt mean you own $500 of bitcoin. It actually means you own 0.1 bitcoin. On June 29, the value of your 0.1 bitcoin would be $257. Come August 10, the value of your bitcoin . $336. Thats perceived value and it is always changing. Check today's price on coinmarketcap. Of course, that doesnt matter until you actually sell it. Transferring bitcoin Same rules apply. You own 0.1 bitcoin. When making a transfer youre transferring 0.1 bitcoin, not $250 of bitcoin. The value changes, depending on the day youre looking at it. Again, it may have been $250 now, but $375 tonight, or $1900 tomorrow etc.
I own $500 worth of bitcoinThis statement is technically flawed and can only be true at one point in time. And leads to the top 3 biggest misconceptions of bitcoin pricing:
- Bitcoin price is not prone to fluctuations
- Bitcoin value is set to fiat currency
- Bitcoin value should always be valued to USD/GBP/EUR
