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Watch the Bitcoin Bubble Burst

Discussion in 'Economy' started by Youngdan, Nov 5, 2017.

  1. Youngdan

    Youngdan Moderator Staff Member Moderator Donator Battle Royale Political Irish

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    BTCUSD=X : Summary for BTC/USD - Yahoo Finance

    This is a simple thread to watch something that very rarely happens and that is a true bubble. Values are totally out the window and the only thing that matters is that it is going up in price. Millions have watched this from perhaps it hits a $100 and are kicking themselves for not getting on board. They are in a panic to now buy before it gets any more valuable.
    Is this not Tulipmania all over again. The value of all the crypt-currencies has now surpassed $200 billion.

    I would like this thread to be about the insanity of this mania and then the stories of the people who will be completely wiped out when the balloon pops.
    Bubbles are always associated with the hopeful phrase,
    "Things are different this time"
    Well maybe they are, who knows but it seems like age old greed to me.
    I eagerly await it's traveling companion that arrives a bit later, and that is fear.
     
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  2. The Potato Mystic

    The Potato Mystic Legend Battle Royale Political Irish

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    I do find myself checkin' every day for that big red, looooong candlestick.
     
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  3. OP
    Youngdan

    Youngdan Moderator Staff Member Moderator Donator Battle Royale Political Irish

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    I was going to put up a image of the parabolic nature of the graph but the only ones showed it going past $1000 vertically. It is now past 7550. The beauty of this is that it seems to trade 24 hours a day every day.
    So, how crazy can it go, who knows. I have read a lot about Tulip mania many years ago. Huge Estates of 1000s of acres were paid for a single bulb before it blew. I even had someone urge me to buy at 4500 a few weeks ago.
     
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  4. anderson

    anderson Respected Member Battle Royale Political Irish

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    Everything seems to indicate the world is heading to another major financial crisis and crash. Everything is being artificially bubbled to force some sort of end of days boom for the rich and elites to cash in on.
     
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  5. Tadhg Gaelach

    Tadhg Gaelach Legend Donator Battle Royale Political Irish

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    It may well be a gigantic bubble, on the other hand, if Bitcoin really does take off as an international currency, then the value of each Bitcoin will be relative to the total usage of Bitcoin, and since Bitcoins can't be just printed the way fiat currency can, you may see Bitcoin go up a lot further. One Wall Street analyst is putting Bitcoin at $25,000 by 2022. There would be nothing strange about that if Bitcoin really does become a generally accepted means of transfer and a store of value. After all, gold was trading about $300 an ounce in the early 2000s, now its about $1300 an ounce. That said, China banned all cryptocurrency exchanges on its territory in September. That knocked Bitcoin back a bit but then it burst above 7000. Japan and South Korea have recognised Bitcoin as legal tender, and the Chicago Mercantile Exchange (CME) is about to launch a Bitcoin future. It may be that China may take some time to get its regulation on Bitcoin together and then recognise it as a valid currency. If that happens, then Bitcoin at 25,000 is well in sight. At the moment a short looks very tempting on Bitcoin, but I'd need to see some catalyst.
     
  6. OP
    Youngdan

    Youngdan Moderator Staff Member Moderator Donator Battle Royale Political Irish

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    There is nothing as beautiful as a tulip. Well actually there was, it was called a rose.
    There is nothing to stop anyone from starting their own bit coin. Call it titcoin, and if it failed you can call it shitcoin.
    But it will be seen eventually as totally insane.
    Kitco shows live quotes for 8 cryptos
     
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  7. Tadhg Gaelach

    Tadhg Gaelach Legend Donator Battle Royale Political Irish

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    I see Cryptos as a sort of rebellion against governments. It's all very Libertarian. And that's sort of the Zeitgeist of this age. Of course it's a delusion, as Chinese corporates already dominate Bitcoin mining (ironically they are being subsidized by he Chinese government giving them cheap electricity) and they certainly aren't very interested in Libertarianism. But still that Libertarian dream will probably keep the Cryptos going for some time to come. I'd say there's a good few boom and bust cycles left in this.
     
  8. OP
    Youngdan

    Youngdan Moderator Staff Member Moderator Donator Battle Royale Political Irish

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    But there is nothing to stop anyone from starting one. The supply is actually unlimited
     
  9. Tadhg Gaelach

    Tadhg Gaelach Legend Donator Battle Royale Political Irish

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    Well, Bitcoin is the Google of the cryptocurrency world. The barrier to entry is now huge. And even if you do enter, getting your cryptocurrency to be worth much is a colossal task - for example, Monero is still worth less than $100.
     
  10. OP
    Youngdan

    Youngdan Moderator Staff Member Moderator Donator Battle Royale Political Irish

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    We are living in a microworld. A currency which costs nothing to produce can be used by just a 100 people.It is not like google, where people demand to use it. Galway people could form their own currency, call it after their major river, what is it?
     
  11. Tadhg Gaelach

    Tadhg Gaelach Legend Donator Battle Royale Political Irish

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    Bitcoins cost a huge amount of electricity and computing power to produce these days. The days of the nerd making bitcoins on his home computer are well and truly over. Of course, any 100 people can design a cryptocurrency and use it themselves, but getting anyone else to use it will be as difficult as getting people involved in your LETS project. I'm not saying you're not right about the Bitcoin bubble bursting. At least a pullback is very likely. But I wouldn't like to put my money on it happening right now. Of course it does look toppy - but it has all year. Imagine if you shorted Bitcoin last February.
     
  12. OP
    Youngdan

    Youngdan Moderator Staff Member Moderator Donator Battle Royale Political Irish

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    Funnily enough it is down about 200 dollars since we started, now at $7341
     
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  13. Tadhg Gaelach

    Tadhg Gaelach Legend Donator Battle Royale Political Irish

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    Well, there's a nice trendline there since September. If it breaks under that I'll probably take a short with a stop above the recent high. A 50% retracement from 18th September would leave us about $5500 - which would be a very nice trade indeed.
     
    Last edited: Nov 6, 2017
  14. roc_

    roc_ Member Political Irish

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    Some good insights here -
     
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  15. Generation Snowflake

    Generation Snowflake Member Political Irish

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    The reasons there is so much money in bitcoins is

    Global QE has created bubbles everywhere in the stock markets
    Inflation and zero interest rates have fucked people saving cash, and so are looking for alternatives for their cash
    Currency wars like china trying to deflate their currencies to keep trade deficits going and so again people looking for alternatives
    Unlike countries like India or certain arab countries, no gold or gold backed alternatives (dinars) to put your money into
    No alternatives left as everything is a bubble including housing as chinese and hedge funds are poring their money into the last alternatives there are

    Bitcoin has the brand recognition, and a bigger number of coders/people behind it. It was first to post. The technology in the end is a global ledger, where bitcoin has a limited number of virtual coins in said ledger.

    Its a total bubble, but so is everything else. The response to 2008 was hold down the print button.
     
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  16. Tadhg Gaelach

    Tadhg Gaelach Legend Donator Battle Royale Political Irish

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    Crypto-currencies can't salvage hedge-fund junkies


    DALLAS (Reuters Breakingviews) - Hedge-fund star Mike Novogratz thinks he has crypto-currencies figured out. The one-time manager of Fortress Investment Group’s flagship macro fund is pinning his comeback hopes on digital coins. Their volatility is alluring when tranquil markets are depressing industry returns. But that can be a trap, as the investor well knows.

    Breakingviews - Crypto-currencies can't salvage hedge-fund junkies
     
  17. OP
    Youngdan

    Youngdan Moderator Staff Member Moderator Donator Battle Royale Political Irish

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    The article points out that anybody can start a new currency, so Ireland could start one and generate 100 billion. Except of course the people who rule there are doing what benefits others.
     
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  18. Tadhg Gaelach

    Tadhg Gaelach Legend Donator Battle Royale Political Irish

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    Bitcoin hits record high after developers suspend plans to 'fork' currency


    NEW YORK/LONDON (Reuters) - Bitcoin hit a record high just shy of $8,000 on Wednesday after a coalition of developers and investors suspended a software upgrade planned for next Thursday that could have split the digital currency in two.

    Bitcoin hits record high after developers suspend plans to 'fork' currency
     
  19. OP
    Youngdan

    Youngdan Moderator Staff Member Moderator Donator Battle Royale Political Irish

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    That must be a momentary blip as I have it at 7378
     
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  20. Tadhg Gaelach

    Tadhg Gaelach Legend Donator Battle Royale Political Irish

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    Ya, it fell back pretty quick - but it's moving up again - I'd say that this plus it being traded on the CME will keep it well supported. Being able to short Bitcoin futures will make it a viable instrument for institutional portfolios.

    CME's Melamed sees bitcoin becoming new asset class