What can Titanic teach you about Bitcoin

I mean the ship, not DiCaprio’s movie. The giant unsinkable ship. You know, everybody claimed that it was unsinkable, so it must have been truth. By the way it accidentally sank on its very first sail.

Just briefly: Titanic was one of the wonders of British industry, the largest ship at the time. It was modern, convenient, rather fast, safe, simply flawless. It could have sailed for decades untouched by storms and tempests that cannot shatter such ship. Even icebergs weren’t supposed to be serious threat.

However, one exact iceberg in the right time under very special circumstances turned out to be much more than a serious threat.

Yes, if that hadn’t happened, Titanic would have most probably remain unsinkable. It could have sailed even nowadays as a super-luxurious overpriced attraction. Like the Orient Express among ships.

​

How is Titanic linked to Bitcoin?

In fact, there is no link. I just wanted to show you how a single event with almost no chance to happen (lets say like trillions to one) can prove everybody to be wrong. And speaking about Bitcoin, people usually are wrong. Have a look at all the analysis of previous years that predicted the future price. I am quite sure that at least 90% were wrong. However wrong they were, the same people still keep predicting the future price.

Bitcoin have already survived a lot of sails. However, there are still icebergs in the ocean. I personally don’t expect any collapse of Bitcoin and several major altcoins. But still, the volatility of price is caused by the volatility of trust. And the trust is the keen thing.

Bitcoin is being accepted by banks and investing companies as an asset. As a result, it gets into portfolio of investment funds and hence people, who have hardly heard about Bitcoin, get involved. That is great when Bitcoin grows, who would reject profit 10% per month? On the other hand, cryptocurrencies can lose a lot within one day. We all experienced it a lot of times. But how would 40 years old accountant with a mortgage and no knowledge about cryptocurrecies at all react if you tell him that his portfolio has just lost 25% because Bitcoin had a bad day, but no worries, sir, it is going to get back soon?

Yes, he will blame you of total incompetence, he would try to get his money back and moreover, he would spit on Bitcoin – the damn non-existing rubbish that stripped him off. One single yeller is not a big deal but when that happens, there will be crowd of such people. And the noise they make will shaken Bitcoin much more than anything we have already experienced. A huge headlines such “Bitcoin investing company announced bankrupt! Over 1.000 investors lost their money!” may cause a serious trouble.

​

By F.G.O. Stuart (1843-1923) [Public domain], via Wikimedia Commons