Show me the list of people that made millions or even billions and took the ride. A lot of penny stocks do comparable things, so nothing new there. And in penny stocks almost nobody ever made huge profits in$$$.
One of the main characteristics of a scam is that you can easily put a lot of money in it, but cannot get out any. I made earlier already a calculation what would have to happen to the smaller buyers if the big wallets would try to get out with 10% of their wallet. The small buyers would have to invest hugely in absorbing the sold bitcoins. What we see now is that a lot of people want to get out and prices crash. This confirms my earlier calculation. The average value of each transaction is 1 bitcoin, so around $9K. If you want to cash in 1 million $ you need on average 111 counterparties to get out. And then we speak only about 1 million. If you want to get out of a $14 million position in the ES you need just seconds and no real price effect during the execution. Try to do this in bitcoins...and watch time and prices... Bitcoin Price Thread
I get your argument but why not put 5% of your net worth into bitcoin if you're right you'll get at least a 400% return next year probably more like 1000%+ otherwise you've only lost up to 5% sounds like good r:r to me futures have made it an institutional store of value like gold and both are driven almost entirely by investment demand are you going to say gold is a scam too?
If I don't understand why I should buy bitcoins I will not. I have better options then bitcoins. Bitcoins would decrease the return of my investments with high probability. Of course I am never sure. But if 99% of buyers have, or no knowledge about trading, nor about bitcions, it is not a good idea to follow them. Each time when the "mass" starts to buy something it is time to get out. You should buy when interest is low and sell when the interest is high, because of the price you pay. All people that bought when the interest was high, are now losing (massive) amounts of money. Billions and billions disappeared in a few weeks. Or rather were transferred from these buyers into the pockets of those who bought before.
The word "IF" means no certainty at all to me. The "IF" in my trading has far more certainty and is real as I prove it every day over and over again. Based on my actual trading the r:r is worse then my trading. So i prefer the better r:r, which means NO bitcoins. gold is already around for centuries, the real bitcoin hype exist(ed) only a short time compared to gold. Futur will tell what bitcoins is/was. gold is physical, bitcoins are just strings. The existance of gold can be checked, the existance of bitcoins not.
How is Bitcoin a bubble? Definition of a bubble is 'a surge in prices not backed up by fundamentals'. How is Bitcoin prices not backed up by fundamentals? Let's be honest with ourselves for moment, the only risks to the crypto market of having a meltdown are 'political' and 'regulatory' otherwise prices are justified. Let's be even more honest with ourselves, the only reason Bitcoin or some other digital currency doesn't replace physical gold as the preferred store of value is if governments, banks and other vested interests stop it from happening long enough until it's in their best interests to make the switch. The whole bubble story being pushed out by the media outlets is to deceive the masses into thinking it's a bubble and they need consumer/investor protection when really investors need protection from the very people that are pretending to protect them.
I think of a bubble as a price surge that may or may not sustain itself. Only time will tell whether this Bitcoin bubble is justified. The Nasdaq crash starting in April 1999 is a great example. The public was wiped out, anhilated, but prices are higher now. There might be wisdom in crowds, but that doesn’t mean the crowd is going to make money.
Love the trade: I know nothing about value, and I don’t need to. I look at the price set by the buyers and sellers....this is what the asset is worth, this is the value. This is the reality of the price whether you agree with it or not. And there was something to indicate Bitcoin prices were above their true value two months ago, this is why they collapsed 50%! There is nothing subjective about prices being able to sustain a certain level. The market determines that...not sure what you are saying there. You said “Cryptocurrencies are a totally different concept and market altogether.” I had to laugh. It is the SAME thing they were saying about the tech companies 20 years ago. There is nothing new in the markets, and there never will be.
Simple Bitcoin is only worth what the next greater fool is willing to pay that is it. Bitcoins are generated out of thin air from mathematical construct. It is not derived from the value of anything. And these mathematical constructs can be created to infinity in parallel. This is why there are tons of different cryptocurrencies and daily ICOs being advertised on the internet. The intrinsic value of bitcoin is 0, the extrinsic value is what the last fool paid for 1 bitcoin. What makes bitcoin worth more than something like bitcoin cash? or etherium etc?? The fools could decide to switch to gambling on some other cryptocurrency and abandoned bitcoin. This whole cryptocurrency reminds me of the HYIP games popular with islanders and some asian populations who play these miniponzis hoping to get out fast enough before it collapses. There are even sites dedicated to reviewing different HYIPs and payout status. The whole cryptocurrency reminds me of all that nonsense.
That's a lie. No penny stock went from $0.001 to $10,900 since 2009. Dude. I'm not talking about profit here. I stated a fact. Can't you discernate fact from fiction?