Tag: Bubble

Bitcoin Speculators Are Laughing At Anyone Who Calls It A Bubble

Of course I don’t agree with everything written in this piece, but would like to point out one important point of view that seems author realizes very well. There’s hardly more essential criteria for a speculator considering whether to take a trade (investment) or not than comparing a potential loss and profit. Bitcoin offers a tremendous risk/reward ratio. Even when at 300 or 500 $/BTC. And big players coming in know it quite well.

Now, does that mean the price won’t drop in the future back down to 50 or 20? No, maybe it will. Does that mean the price will hit 1000 someday? Sure it will and probably much more.

There’s simply no other way than up. Especially when you see Bitcoin not only as a trading article with a possible pump-dump moves, but also the storage of value (collapsing fiat currencies) and the transactional money (making current banking system obsolete).

Of course many speculators have no clue of what Bitcoin really is and when the next round of “Oh My God The Bubble Is Bursting” sell-off comes you will just smile and buy some more precious digital.

 

Bitcoin Speculators Are Laughing

The largest bubble in the world? Fiat currencies and central banking

If you are not a regular reader of Trace Mayer’s articles you may miss some substantial information.

“There are only about 80,000 bitcoins of ‘float’ on a daily basis. Remember, prices are set at the margin. Simplistically  and only for an example in aggregate, this means that if there is a positive funds flow into bitcoins of about a mere $4m then it will move the price by about $50.

So, obviously, if there are any large blocks of bitcoins, ‘walls’, are gobbled up extremely quickly by this hot money from VCs and Wall Streeters. If that float can be reduced from 80,000 to 40,000 then the same $4m will move the price $100. That means VCs and Wall Streeters will have to pay more dearly to get any bitcoins. Squeeze them for all they are worth!”

“You know what’s cool? A $150 per bitcoin? No, a $1m per bitcoin. It may take a decade to get there but the fiat currency market coupled with fractional reserve banking is the largest bubble in the world”

“And for those who think there is a massive Bitcoin bubble. The last bubble went from $0.05 to about $32 and unlike so many who are calling this a bubble I know what it felt like back then because I was there. For a comparable move the bitcoin price would need to move from about $5 to around $3,200, a 20x rise from current prices, and we are only about 5% up this ‘wall of worry’.”