Coin Bubble

What is a bubble?
The difference between the real price and the market price of a commodity is called a bubble. A bubble occurs when the price of a commodity increases or decreases for reasons other than its intrinsic value.

What is the positive and negative bubble of gold?
A positive bubble occurs when the market price of a commodity, such as a coin or gold, is greater than its true value. In other words, the market price is too high. Conversely, a negative bubble occurs when the market price is lower than the real value of the commodity, that is, the market price is abnormally lower than its real value.

When does a coin bubble happen?
A coin bubble is formed when the coin market price fluctuates greatly under the influence of external factors such as the economic and political conditions of the country and deviates from its real price. The actual price of the coin is determined based on the world price of an ounce of gold and the exchange rate.

Who benefits from the coin bubble?
People who can predict market changes and get in or out at the right time will profit from coin bubbles. For example, in a positive bubble, those who bought the coin before the price went up can profit by selling it at a higher price. Conversely, in a negative bubble, people who buy the coin after the price drops can profit after the price returns to normal.

Factors causing the coin bubble
The creation of positive and negative bubbles in the coin market mainly occurs due to changes in supply and demand. When a large number of people are looking to buy a coin and the demand exceeds the supply, the price of the coin increases and a positive bubble is formed. Conversely, when the attractiveness of investing in a coin decreases and sellers outnumber buyers, the price of the coin decreases and a negative bubble is created.

Understanding the concept of a coin bubble and the factors that influence it will help investors make better decisions in the market and make the most of the opportunities available.