USD adjusted for inflation since 1971 minus 98% Nikkei 1980's 592% Dow 1920's 596% Gold 2001-2012: 706% South sea bubble 1000% Top end of London housing 2003-2013 1000% Nasdaq 1990's 1553% Kuwaiti stock market 1981/2 2000% Gold 1970-31/1/1980: 2572% Microstrategy stock in 1999/2000 4534% .Tulip mania 6000% Bitcoin 2013 6145% AMZN 2001-2014 7405% NXT crypto Dec 2013 10691% PCLN 2002-2014 19,285% BRKA 1962-2013 2,353,947% Bitcoin 2010-2013 8,160,000% During the 2013 bitcoin rally I came up with these numbers. Provides context for why you should invest in anything other than cash. For further context of where we are and a prediction for the future which was written in 2010 when the Dow was at 10,000 is More information on large market moves are on this website http://www.thebubblebubble.com/
Not sure how anyone got those numbers? Bitcon from $100 - 2,600 is a 2,600% gain or a 26 bager - a nice gain but nothing compared to the sea of dot.com stocks that rocketed up from $2 to $100+ which is a 5,000% gain or a 50 bager. Hope there is a way to short bitcon before to long - it is destined to reset back to $100 since all bubbles fall back to where they started at some point.
There's Bitcoin CFDs that you can short. You don't know it's a bubble until you know it's intrinsic value. Thats all up in the air at this point in time so the big short opportunities might take a while until the whole cryptocurrency thing becomes more established.
There's Bitcoin CFDs that you can short. Thanks for the idea but I am in the U.S. and unable to trade in CFDs.
Thanks for the info on Deribit but they look to risky for my taste. When you trade derivatives like this, your main risk is counterparty risk. Deribit, with things like this and the documentation used to describe their futures and options offerings, does not inspire trust in them as a counterparty. From the terms: "In no event will Deribit, or its suppliers or licensors, be liable ... for any amounts that exceed the fees paid by you to Deribit under this agreement during the twelve (12) month period prior to the cause of action." Financial services do not work like that. They have much larger obligations to their customers.
There is no doubt that there is intrinsic value as an enabling technology for a worldwide currency. What remains to be seen is whether the Bitcoin foundation will be successful in its stewardship of the technology. I doubt it. Absolute power corrupts absolutely. The only check they have on their power is blockchain forking.
Looking at bitcoin chart. In its first year, bitcoin went from $0.003 to $30 That was a 10,000 fold increase in one year. That was the only really epic bubble run in bitcoin.