I would like to welcome you to my first Steemit article. My name is Simon and i am an anarcho-capitalist. I have traded nearly anything tradeable in the world in the last two decades of my trading life. The most important thing i have learnt is, that information is the only real important commodity. For this reason, my mission on Steemit will be to provide you with crucial information and my long-term market experience. But now, lets go to the real thing i want to tell you about markets and Bananas :-)
Markets and Bananas? What is he talking about, you will think now.
Everybody knows this guy ha?
Ya, thats Bud Spencer as Banana Joe. He played a good well-hearted banana-trader fighting the bad ones. Anybody knew what happend when he turned up. This respresents a clear role of action. You can say, that you can forcast, with a pretty high probability, what will happen. Now let me show you in comparison a real world banana-trader, no fiction.
This infamous picture of a chinese banana-trader in April of 2015 showed me and the world, what was really going on in the chinese stock market. He is not selling his bananas. He is trading stocks all day long. WTF???
But the banana guy was not the only one trading all day long as you can see with the rising trading accounts openings in china. House-wifes and retirees where also all-in.
I think, you can imagine what happened next?
Yapp, it was an EPIC CRASH!! China started nationalizing its Stock Market as consequence and hunted the sellers and short sellers. Even filled there prisons with them.
The real answer of the communist party and the PBOC was a massive expansion of public debt. A half-a-trillion us dollar were printed in the first half of january 2016. But thats really peanuts if you look at the next chart.
In the last seven years, China accounted for 40% of all global debt creation. So it is not really hard to understand why Bitcoin and the whole altcoin crypto space had this tremendous bull-run in the last years. Because it is no about a bubble in Bitcoin or in Ethereum or Dash. It is all about the chinese debt bubble which already popped a year ago. Chinese authorities implemented capital controls to stop the outflows from china to the rest of the world. But as i previously told you, its about information. Chinese people are not dump. So they found other ways to get the money out.
Get your money out, as fast secure and legal as possible. The crypto space maybe a unregulated financial market, but it is legal. The chinese currency gets crushed and hard-core shorted all few month again and again. A clear sign of big players attacking the chinese currency from the outisde.
It´s pure psychologial. People try to rush all at the same time trough a really narrow door. They rushed trough the gates and this is still going on. A burst of a bubble in this magnitude takes years. Not to mention that china is not a market economy. It is planned and not working in any case, so no one can really say how long the issues in the chinese banking system, currency system and psychological thinking of the people will last aka fear of losing all their savings. There are no functioning market forces which could destroy all the unprofitable indebted chinese businesses. The government will further try to hold it alive, like a zombie ecnonomy and market.
But to make it clear. As you can see on the chart above there is a serious liquidity crisis in the banking system. So do not expect to see Bitcoin lower any time soon.
I hope i could support your own opinion building about all this crypto bubble chatter in the community in the last months.
BE AWARE AND TRADE ACCORDINGLY.
Simon the Ravager - Dasheroni & Anarcho-Capitalist