bitcoin a speculative bubble
"bitcoin a speculative bubble"
in the news bitcoin a speculative bubble? What this all about..... See below.
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Sentiment Trader reassessed his thoughts on bitcoin after starkly warning his clients against the high-flying digital currency in July.
We were fortunate enough to read the tea leaves and with charts call the financial crisis and the dot-com bubble implosion before it happened.
There has been particularly spirited response and comments on digital currencies, I think I understand what a digital currency is, how bitcoin works, and some of the arguments for it. I can understand why people do not want to put their money to work in this asset because it is considered a very speculative bubble.
Bitcoin's price is up more 350 percent year to date, according to data from industry website CoinDesk. The digital currency fell 7 percent Friday on a report China may shut down local bitcoin exchanges. Personally I think this is more a positive thing than a negative, as the price would have crashed much further if people go nervous.
An initial assessment of bitcoin is pretty dismal when you read what other analysts think, They do call it an "unfounded fad (or perhaps even a pyramid scheme)" i. While I can see that side of the argument, it could be legitimately used as a viable form of payment. So there are two sides to every coin, pun intended. :-)
"What bitcoin partisans have told me subsequently is that bitcoin should be thought of as a currency – a medium of exchange – and maybe not an investment asset, "Bitcoin fans argue that it qualifies as a currency … it's something that parties can agree to accept as legal tender and a store of value. That actually seems right.
On the flip side, you must remember that there are "no limits" on the creation of new cryptocurrencies and warned bitcoin may not become the eventual victor. So we can compard the current digital currency situation to the dot-com bubble period: What will happen next is anyones guess?
So even if digital currencies are here to stay, who knows which one will turn out to be the winner? Hundreds of e-commerce start-ups appreciated rapidly in the tech bubble based on the premise that 'the Internet will change the world.' It did, but most of the companies ended up worthless. Will this happen in the crypto world, well I am not sure, but they are here to stay and its gaining massive popularity!!!
You can see that just in the last 6 months, bitcoin itself has gone from $1000 all the way to $5000 per coin, and just off the highs today.
This is quite interesting & amazing on the charts, and we have not seen this for a while.....
At the time of posting this BITCOIN itself was about $700 down from its all time highs, and as news out of china hits the headlines we will see if that effects the price more!.
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