Bitcoin Bubble?

in #bitcoin7 years ago

I know I will get a lot of flack on this post. However, I am going to say it. Bitcoin looks like it is in a massive bubble. I understand the ease of transfer between two parties. But there is no way to control your risk with bitcoins extreme volatility. With the US dollar one can hedege their purchese or sale with the futures market. I believe bitcoins could be in a modern day tulip bubble, where I have no clue where they will trade too with their extreme volatility. What I do believe, there could be some people who will be buying the top. This is just the way it is.

Bitcoin has reached it´s first target at 1880. In order for it to reach it´s second target, it has to clear 1880 and hold it as support to trade to it´s second target at 2323, which I believe will not trade. With bitcoin who knows, because bitcoins are on crack and can jump really fast or crash just as fast if not faster.

https://www.tradingview.com/x/lDy68yCc/

Disclaimer: The Anunnaki Clown Trade Room is so great it will guarantee you a 100% loss to zero win ratio. yes that´s correct! The Fake Anunnaki Trade Room is so great, you will lose all your money, blow up your account, get margin called, all by using this horrible system.

This video/post is satirical and should not be taken serious at all. The Fake Anunnaki Trade Room is a fictional trade room that is for entertainment only. I show in many of my videos the sillyness of YouTube traders, who pretend to have all the correct calls and never lose. Which is total hogwash.

Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

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Will the bubble crash soon or will it happen after a long time?

It was very useful post for me.

I don't think you'll get flack, a few people have expressed this opinion.
Upvoted and followed.

While I do not agree with your conclusion, I support your freedom to express your thoughts and willingness to have a discussion about it. I personally believe that crypto currency, and more importantly the blockchain that supports it, will impact the financial market in the same way the internet impacted communications. Take a survey of a random sample of 50 people on the street and ask them if they know anything about Bitcoin, and if they have any. My guess is very few would know what it is, and even fewer would have any. If it was a true bubble, everyone would know about it, and everyone would have some. Keep researching, and understanding the abilities of the blockchain. If you still believe it is a bubble, wait a few years, and one of us will be right. Only time will tell for sure!

With btc there is no way for multinational corporations to lock in their risk with btc. With the US dollar, a farmer, miner, oil producer can sell future contracts locking in profit margins. They can contol their risk if the dollar goes down. With btc and it´s wild swings, a million dollar sale could turn into a million dollar loss regarding profits with btc losing 9% in the last three days. I do not see multination corporations using btc until they have a vehicle to manage risk, locking in profit margins.

I also believe retail are the main drivers of the current btc rally. Where volume is coming out of China. Chinese people are using btc to expatriot yuan and convert it into dollars. This seems more like what people are willing to pay to get out of a shitty national currency (yuan) and into USD.

Just looking at the btc parabolic rise it is comparable to previous bubbles, NDX yr 2000, Silver yr 2011 and has eclipsed the Dow Jones stock market bubble yr 1929. I believe the more btc continues to go parabolic, the bigger the bubble it will become, if the top is not already in. I do not know, picking tops is impossible. btc bubble comparison chart. https://www.tradingview.com/x/FhGQdkai/

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