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RE: Bold Statement: We Are Headed For The Dead Cat Bounce (A Must Read For Every Steemian)
That is a very bold statement and backed up by facts. I see the $2900 being in the cards..perhaps even $2500. What will it do from there? I agree the profit-taking would be over at that point so a run makes a lot of sense. Where to then? It is anyone's guess.
One thing about bubbles...they are usually credit induced. The dotcom had people buying on margin (and credit cards)..the housing market was full of liar loans. My question is where is the credit in this instance? Being relatively new to the crypto world, I just dont see the plethora of "dumb" money in this arena yet. Am I missing it?
It is some very good points about credit being utilized in other bubbles with the margin trading and with the housing crisis it was liar loans....etc. Some of the crypto exchanges you can utilize credit cards to make purchases. Also people can do credit card convenience checks and write them to themselves and put those in their banks and buy Bitcoin with them. I don't know how big of a percentage that is but just in general people are more and more leveraged out these days just with their whole lives. It is hard to know exact numbers but there are tons of people living pay check to paycheck. Now the question would be if those are the types of people who are investing in Bitcoin? I think there could be a lot because for instance @trevonjb has a pretty large following and a big thing he says on some of his stuff is that he went from food stamps to having over $100K worth of Bitcoin in a year. Like he has $180,000 worth of crypto a lot of it came from pitching the Bitconnect scam. So those types of followings pore in and they might not have the money. But regardless it could be your run of the mill person with a 30 year note on their house and a car payment and a 2 year device payment agreement on their cell phone.....etc with other obligations like kids and all that. Then life happens and you need the money and this Bitcoin thing that has just been keeping you up at night because it seems to keep sinking ends up being something they sell because they need the money.
Plus another thing I would say is that in the crypto market the pops and drops are so much faster that the emotions can run higher. The stock market and real estate markets seem like snails pace compared to this stuff so people can get scared a lot faster and retreat to fiat money.
With the dumb money I'm just having people come out of the wood work contacting me because they knew I was in Bitcoin back in 2013. Finally they have warmed up to the idea at exactly the wrong time. It is a sign it is way over heated. Plus I'm having a lot of non techincal people sending me information on ICOs to get my opinion and I read the stuff and I'm like "What the Hell? This doesn't even make any sense at all." But those people would have maybe put money in if I wasn't there to say NO WAY. A lot of people don't have a trusted resource to go to. They are watching @craig-grant and @trevonjb and joining the BitConnect Ponzi scheme.
Hopefully that helps!
Ohhhh @craig-grant is the super star !
=D