24 Απριλίου 2018

Bitcoin: “King” of all bubbles!

Bitcoin: “King” of all bubbles!

In a bull market, everyone becomes an expert! In a bear market, everyone becomes wise!

Bitcoin is a large and expanding – yet –  ‘legal’ ponzi scheme globally.

Recently, it became the “King” of all bubbles, historically. See HERE.

 

Let’s examine it now (December 2017), at a glance:

 

Bitcoin cons:

1. It’s already a Mega Bubble.
See above graph.

2. Imaginative speculation (globally).
It will never have a widespread use that will justify these prices (and I mean anything above $2,500).
Do you know many companies to accept being paid in bitcoins? … now, not in the far future…
Would you like to get paid in bitcoins for your job? Or you would prefer to get paid in dollars or euros? Can you actually pay with bitcoins in your local Super Market (now)? … or you must change them into dollars or euros that are accepted everywhere and have real purchasing power (with $ or you can buy anything, without change them to something else). Think about that. (examine facts, not imaginery speculation)
They also say, it’s the coin (money) of future. Even if it could become, with such a volatility, is cancelled.

3. Not easy to buy, even more difficult to sell.
Till now is convinient only to tech-geeks.
If you want to buy, firstly learn the mechanism to sell.

4. Demand and Supply do not function properly.
It has to do with #3. That leads to to distortions and bubblicious exaggerations.

5. High Fees and commissions.
Before you buy, learn about these.

6. The governments will tax the profits from bitcoin explosion.
Everywhere in Earth, governments want to increase their income (tax). Do you think that they will leave untouched such a ‘gold-mine’ like bitcoins?

7. When governments think that is the right time, they will regulate and control bitcoin.
In my Country (Greece), we have a proverb, saying that “Love, coughing and money, can’t be hidden”. Leaving aside love and coughing, money can’t be hidden because at some point, they will appear in a ‘point’ that governments can check and control. If you have money, because of bitcoin explosion, sooner or later, you will make some purchase that will pass through legal economy. At this point, the State will catch you and at least, will tax you heavily. At least.

8. Is it safe?
It’s something digital. Are you sure it can’t be hacked?  … and lose all your money in your e-wallet? Some platforms had been hacked recently.

9. Competition will emerge.
If bitcoin has some real use, I emphasise, IF, then competition will emerge. We are talking for some tech-thing. It is easy, some more advanced «thing» to appear and take bitcoin’s place. In such situation, bitcoin’s value will vanish.

10. I observe typical bubble features.
• They start accepting bitcoins for lending you dollars. When they use this ‘valuable’ asset (like bitcoin in our case) as a collateral, you can suspect that the bubble’s top is close.
• I observe many “nothing” companies like penny stocks, switching their business models, just to follow the «sexy» bitcoin mining and wider crypto-currency sector (usually is just words from scumbags; they don’t do actually something) and their stocks skyrocket! This is a phenomenon of bubbles and it happens near the top of a bubble. In the ’90s, many “nothing” companies they changed their title to [something].com, just to take advantage from dot-com mania (most of them, just disappeared in the years that followed). Now, it’s bitcoin-mania.

11.Everything in history, having such an exponential rise in such short-term horizon, was a bubble.
Bitcoiners try to justify this, by saying it’s «revolutionary», like internet. That’s their mantra. Let’s accept their «logic»: Did GOOGLE, maybe the best and top internet company, with widespread use – who doesn’t use Google daily? – and basically a monopoly in its areas, had ever such an exponential rise in such short-term horizon? Not even for a joke.
And how come and bitcoin’s use has not spread significantly, globally? It didn’t created last year or in 2015; it created in 2009. Almost a decade passed and bitcoin has a very tinny and limited use as money.

12. Furhermore, bitcoin’s capitalization has surpass old, strong and gigantic corporations with widespread presence, strong and useful products and services, companies with past, present and future. Now just 11 companies have larger capitalization than useless* bitcoin. Can you believe that bitcoin is the 12th most valued «asset» in todays world? … and if it keeps going up, will be the 11th, 10th or 9th most valuable asset globally? It is already a huge madness and will be worse if it keeps flying.
(* useless because of how many use it as real money for their transactions?)

 

Bitcoin pros:

1. Imaginative speculation (globally).
This point is the same with cons. In cons is negative because of bitcoin contrast to fundamentals and real potential use. Here, this point is positive, because this huge speculation, leaves a lot of area to expand.

2. It can (possibly) inflate much further before it bursts, because now, is not yet widespread among global population.
Bubbles usually burst, when a big part of the population is engaged in those basically ponzis.
How many do actually use bitcoins (today) in their transactions? How many are paid in bitcoins? How many have obtain bitcoins, even just for speculation? So, it seems that we don’t have yet, the critical bubble size, it needs for a bubble to burst. But you cannot feel safe, because any bubble behave chaotic and with an unpredictable way.

Panayotis Sofianopoulos
Author of
HERETIC INVESTOR: A work smart, not hard, way to profit on Wall Street!

http://amzn.to/2dz6CVV

You can contact me at sofpan@yahoo.com

Compare Bitcoin with another big and expanding trend: airbnb.
Airbnb, also innovative, is more widespread globally and with obvious use and benefit, comparable to bitcoin. Although, bitcoin has surpass airbnb, in Google Trends, in last 5 years time-frame. So bitcoin with much less use than airbnb, is so bubblecious.

 

“I’m forever blowing bubbles,
pretty bubbles in the air,
they fly so high, nearly reach the sky,
then like my dreams they fade and die”.
Popular American song, debuted in 1918 (John Kellette, Jaan Kenbrovin)

• Read also THIS.

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