Person A - 1 bitcoin = $1,
some stranger B invest $1,
now 1 bitcoin = $2
some stranger C invest $2 again,
now 1 bitcoin = $4
Person A use 0.5 bitcoin to buy $2 pizza (Used in realworld) <--- bubble
now 1 bitcoin = $2
Person A cash out remaining 0.5 bitcoin ($1) <--- bubble
CONCLUSION:
Person A earned $2 by investing $1 = Total is $3
Person B (1 share) & Person C (2 Share) have $1
Person B cannot wait and scared, sold off his bitcoin
Person B gets $0.33 (loss 66%)
1 Bitcoin = $0.66
Person C currently loss more than 50% have $0.66 value of bitcoin, and waited patiently for Investor D, E, F to donate to the market.
If you don't cash out to use in the realworld, the money is never yours. Not forgetting the transaction fee incurred by bitcoin founder, the amount actually lesser.
When bitcoin bubble burst, one the of the few rich (who has a higher share [CEO, drug dealer]) will take away money from those millions noobs. A few will earn, many will lose.
When bitcoins raise from $1 to $2 = 100% earning
When bitcoins raise from $2 to $3 = 50% earning.
When bitcoins raise from $3 to $4 = 25% earning.
If Person X want to earn more, start invests at very early stage. Now at $16000, to earn at 100%, you need the price to be at $32000.
Compared to those Person Y who invested at $8000, they will be earning 400% when price reaches $32000.
So who is most likely to cash out, Person X or Y?
Supply and Demand - limited bitcoins, the whole world wants, but most of them do not know why they want it, just put in the money and hope to earn. Money is used for transaction in real world, to exchange products. The purpose of bitcoins is used to pass a sum of money to another person ANONYMOUSLY using a technology (blockchain) that is recordable but untraceable [illegal activities], seldom it is used for transaction of products due to its volatility. Now some shops also joined in the fun, If countries starts to ban / control / regulate bitcoins, or shops lost confident of bitcoins, that's it. Pop, pop, pop.
