About Bananas, Bitcoins & Bubbles

in cryptocurrency •  2 years ago  (edited)

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.

Wot? oO?
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.

Yours
Simon the Ravager - Dasheroni & Anarcho-Capitalist

http://www.zerohedge.com/news/2015-04-28/wtf-chart-day-over-4-million-new-chinese-trading-accounts-opened-last-week

http://www.zerohedge.com/news/2015-07-22/chinas-plunge-protection-team-just-became-top-10-holder-8-stocks

http://www.zerohedge.com/news/2016-02-15/china-created-record-half-trillion-dollars-debt-january

http://www.zerohedge.com/news/2016-03-07/last-seven-years-china-accounted-40-entire-global-debt-creation

http://www.zerohedge.com/news/2016-12-18/chinese-interbank-lending-freezes-forcing-massive-intervention-chinas-central-bank

http://www.zerohedge.com/news/2017-03-22/china-shadow-banks-crushed-liquidity-costs-hit-record-high

https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcSWq29Y1grC_TFHF_glDXNpFAyVXFSmLeMxUsM_9wQ6vHIYby8vUA

http://www.visualcapitalist.com/chart-coin-universe-keeps-expanding/

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

the next beginning of a stock market crash is coming from the asian markets. the bubble in china is growing realy fast. The next crash will be the hardest since stock markets exist. I try to buy CryptoCurrency to prepare for the crash.

yeah just plenty of time ^^

Great Stuff Simon.
Upvoted, resteemed, followed.

Talking market collapse is my favorite topic.

Awesome, thank you very much, nice that someone read it ^^

I bet you I'm one of the few people who here who even understood most of it. :)

China's shadow banking system is a complete nightmare and it's slow-motion collapse is what has helped fuel the build out of the cryptocurrency market.

The next phase is nearly upon us.

Oh yes, all the chatter about a crypto bubble is just simple nonsense. It´s just the natural answer to the total final collapse of the fractional banking system in 2008. But whatever, thank god that we got the subrime crisis haha :-) now we can build a new global financial system on democracy for the people, by the people and with the people \o/\o/

Saw your post in of steemit.chat rooms, it was anarchy I think so. Don't understand much about markets, but I'm anarchist. Hope we can learn from each other. Upvoted this and followed you.

Great article, always a little skeptic when I see sources all from one location but some quick googling found similar analysis from multiple different outlets.

Excellent research and extremely entertaining! Follow and resteemed!

Hi Simon, my name is Leroy and I am ... doesn't matter to me.
Welcome, very good post, thank you -

Herzlich Willkommen, fellow Dasheroni :)

Great info, thanks for posting ;-)

That was a really nice article, looking forward to future posts, upvoted and followed, welcome aboard!

very good article, following