I am no genius, but i have been into Indian stock markets (BSE/NSE) since 2004. I have seen alot if not all, including the 2007-8 market crash. I still remember how it all started and how the markets collapsed. I am also a technical analyst, but i will not go explain showing some charts, as alot of famous people have been telling us since 2010 that financial system will collapse this year till today, and have been falling wrong on. I am not going to show any charts or something, but will relate the current scenario of cryptos to 2007-8, and talk about some similarities which i am seeing.
Here are a few similarities:
- In 2006 - 2007 here in india, the markets were going up like rocket, and later in 2007, alot of people were feeling left out. I still remember my uncles, neighbours, etc. who never invested in stock markets, wanted to invest and asked me about it, since i too was making big bucks and flying on luxury holidays pretty often. Remember i was pretty new to the markets, and i was already making big bucks.
Similarly just sometime ago, i was telling my family and friends to invest in bitcoin at around 2000$ and etheruem at 50$, and nobody bothered and made fun of me and said its illegal. Today those same guys call me and want to buy them and learn about it, when all cryptos are nearly or morethan 10times the prices.
- In 2007, i saw huge amounts of DMAT (dematerialization) & stock trading accounts being opened. Infact i remember a family friend who never had a single investment in stock market, wanted to buy some shares as someone told him to buy. These things did not bother me at that time, as i was blinded by the profits.
Similarly some of the biggest online crypto exchanges have temporarily stopped signing up of new members due to the fact that alot of new accounts are being opened. The same thing is going on in Indian crypto exchanges like Ethexindia.com.
If we see these two major scenarios that are matching each other, & everyone now wants some Bitcoin or Ethereum or Iota, etc. personally i feel it is pretty scary to be in. However im not against cryptos, i still am holding alot, but have removed my investments, and sitting on cryptos that dont cost me anything. Yup, so iv kept only my profits in crypto, but have removed the $/rupees invested. I maybe wrong, absolutely wrong, but this is what i see.
I wanted to keep it simple, so most of them understand it easily, as charts/techie words are difficult for a lot of them to understand.
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