What’s the deal with bitcoin?
Bitcoin is going vertically up. People who have invested or had sold when it went low. What’s your take?
Couple things triggered it. Facebook Libra added crypto credibility. Economic war between countries added safe harbor. Technology added use. It all came together to drive a spike and then the spike caused investors to panic buy in fear of missing out. I’ve been investing for two years, I’m way up now.
Explain why Facebook's libra, which is actually just a basket of real currencies, would add crypto credibility? Economic wars between nations were ramping last year, and the year before that, it's relatively flat now in terms of escalation. Does not correlate with Bitcoin rises. I don't buy this explanation. Technology has been steadily adding use cases, no spike in tech dev happened in June 2019. Don't really buy this explanation either.
Libra brought credibility by having a major tech firm pushing for digital currency. It markets digital currency to the masses and brings interest. Are you not watching the US trade wars closely? Maybe you missed that economic war, go read the news. Technology uses cases add over time, it’s a gradual increase in usage. Thanks
Crypto still represents a paradigm shift in fintech. It is and always has been an important, disruptive new technology of huge value The initial exuberance caused some burn out which caused the subsequent drop and stagnation, what we are seeing now is a return to normal value after a more sober perspective replaced the initial enthusiasm
Bought in early this year, let me shill a bit: 1. Ballooning US and international debt increasing mistrust/lack of faith in fiat currency. (Ex: Venezuelan citizens have been turning to crypto in the wake of their economic crisis) 2. Increased institutional interest and adoption. (Fidelity, Square, Starbucks, TDAmeritrade) 3. The halvening is happening in less than a year, an event that will cut the bitcoin generation rate in half, further decreasing supply. 4. Praised by brilliant leaders in tech such as Steve Wozniak, Jack Dorsey, Elon Musk and more. 5. Strong case that new Millennial money will shift into Bitcoin rather than gold in the next few decades, as they are more comfortable with digital technology than Boomers. That said, I didn't expect it to rise this fast the past few months. 😂 HODLing for the long term. To the moon!
One extra factor. Bitfinex...
What happened with Bitfinex?
Short squeeze
FOMO
Lambo
I mean just look at it today, it jumped so much. None of the above reasons explain this super big pump in one day. Feels like some big whales are moving together, North Korea, China or some other corrupted groups
Bitcoin moves in parabolic patterns. It always has, it’s just market cycles on steroids. What takes 30 years in traditional markets takes 1 in crypto. Who knows where this one will top out, but when it does it will take a dump right back just as fast as it came up. Maybe not all the way back to 3k but I would bet on seeing it go down to 6-8k again even if it goes all the way up to 30k before dropping. All that said, it still has risen in the long term better than any other asset class in the last decade. So if you bought and held through everything, you liked have done very well. It’s just trying to play the swings is somewhat of a trap unless you are experienced in trading.
True, but each peak has surpassed the previous ones' by several magnitudes. 2011 peak: $100~ "it's a scam!" 2013 peak: $1000~ "it's a scam!" 2017 peak: $20000~ "it's a scam!" 2021 peak:?
But don’t y’all think this sudden explode in value is more of a panic buy?
Even if that were true (probably is) the smart institutional investors won’t dump their whole stack way before the halvening in May 2020, when the supply flow will literally be cut in HALF. Any dumps from here would be profit scraping from short term traders. I don’t foresee a major 50%+ crash before 2020. The halvening in 2016 was a major factor that triggered the 2017 bull run. Disclaimer: just my opinion, I hold BTC
Panic buys come at the very last. These are new and existing investors getting in. Newbies generally get FOMO and they get in the market at it's tops, we have way to go still till a local top.
Pump and dump scheme in progress for 2019
Maybe, guess time will tell. I’m riding the awesome returns though and am super happy.