Bitcoin Mania Has Arrived! I Will Be in My Bunker.
Across Social Media, Traditional Media and In Conversation All I Hear About is Bitcoin.
It seems my beloved Bitcoin is hitting its next level of adoption. We are no longer criminals. People now see Bitcoin as a way to quickly build wealth. Wait, that sounds like a get rick quick scheme!
Anyone who has followed me over the last four years knows that I love Bitcoin and what the technology has done for my family. I now have a sense that we are in for a shakeout. There are so many signs that we are in a state of euphoria in the Bitcoin market.
Check Out This Text From a Post in a FB Group.
"If BTC is $10k and poised to rocket to $30-40k by end of next year. Would it be reckless to start taking out high interest payday loans ($500-5000) and putting it into BTC, paying off the loan and keeping the difference? This assumes, of course, that you have no other source of getting funds aside from donating plasma."
Bloggers, Youtubers and Other Crypto Influencers are All Bulls.
- "No signs of a pullback."
- "We are heading to the moon."
- "Bitcoin is different than other markets."
- "We could 10X again in 12 months."
- "Nothing will ever replace Bitcoin."
- "Bitcoin will always be king."
- "Lambo's for Everyone!"
- "I am refinancing my house and putting it all in Crypto."
- "There is nothing like Mt. Gox on the horizon."
When I See This Type of Rhetoric My Inner Bear Arises.
I am actually going to Peter Schiff and say that the Bitcoin market is going to pull back big time. Yes I made his name into a verb. Peter Schiff has been a Bitcoin Perma-Bull since the early days. He likes to say the Bitcoin market is similar to "Tulip Mania". I can't wait to see Peter Schiff come on CNBC and claim that he was right when Bitcoin corrects. Like there was never a time when he thought Bitcoin was not a bubble.
Unlike Peter Schiff I have been a Bitcoin Bull for the last four years. It was not until 2017 that our crypto holdings exploded in value. Prior to 2017 it was a nice steady rise. I actually used to use our Bitcoin to buy plane tickets and pay for services. We still do but when we cash out it is for a fraction of a Bitcoin due to the meteoric rise.
Can you imagine that we spent 20 Bitcoins last year on two trips? Ouch, that hurts! In a few years we might look like the guy who bought the Pizzas for 10,000 Bitcoins.
Warren Buffet Said, "Be fearful when others are greedy and greedy only when others are fearful."
Being Cautious in This Market.
- It is ok to take profits if you feel the market is over heated.
- Buy some Gold and Silver with your profits.
- Buy some real estate.
- Pay off debts.
- Invest in some quality ICO's
- Diversify into stable altcoins.
- Have some fun with shit coins.
- Take a few months off and travel.
- Buy some Tesla stock.
I Am Cautious But Still a Huge Bull For the Crypto Currency and Blockchain Market.
Update: This article was written when Bitcoin was over $11k it corrected to under $10k within hours. Just call me, "The Bitcoin Prophet of Doom".
I do, I buy some gold always when I gain profit.
Don't forget about silver. The gold/silver ratio has been high for a while. Eventually, it will likely come down to where you could get more gold per kilo of silver
All great advice you got there Randy, but I think the price still has some time to grow with Wall Street getting in next month, and the episode of Big Bang Theory airing, then we may see a correction, but don't expect it to be too big, because the larger the overall capitalization of Bitcoin becomes, the less volatility it will have.
When markets are understood, the idea that everyone can make money is not only inaccurate but impossible and laughable. Everyone making money means there is no market, because who would be taking the other side of the trade?
It is no mistake that individuals begin to like the same sorts of fashions that everyone is wearing. In a quest to change, the majority of society ends up changing together, moving towards similar desires and away from similar dislikes. Therefore, what the market is offering provides the exact thing that will lure the trader into the crowd.
For example, someone who has little experience investing wants to get involved because everyone else in their social circle is, ads are all over tv and even their nightly newscasters are talking a lot more about how the market is so good. In this environment you can be certain there will be lots of “helping hands” to welcome this investor to the crowd, teach them to be a part of the crowd and initiate them into the world of the blind leading the blind.
The market is unlikely to reverse to any significant degree until almost everyone is on one side. Which means almost everyone who joined that party late is going to lose. A bunch of people may just decide to wait, but so will the market. And if people are divided then the market will move in a ranging fashion.
People are the catalyst and without people to create an extreme the market won’t hit an extreme and reverse–remember the market does not act on its own, we…the people… are the market. In other words, the boom and bust cycles will not end. We progress and regress and then progress again.
Until almost everyone is in the trend, it won’t stop. The trend will keep going, enticing more people in, and when it reaches critical mass (which it can’t do without pretty much everyone on board) a reversal occurs. This change in fortune (for the worse) causes concern and then panic as a full reversal occurs. And as the mood of society continues to grow darker people feel more hopeless and give up fanciful notions of making money with crypto and so it will continue to drop.
In other words, the very thing which lures people in droves (big returns) ironically means that most of those people will be on the losing end of that exchange. In another ironic twist, when people clamor into the market all at once out of greed and a belief that a new era has begun, they bring about the exact opposite. @pawsdog
I totally agree with you, but the percentage of folks participating is way too low to bring about what you are saying to fruition currently, and only when Grandma is invested should you worry.
You were saying?
http://www.cbc.ca/news/canada/hamilton/woman-seen-feeding-cash-into-bitcoin-atm-was-scammed-police-say-1.4262285
https://money.usnews.com/investing/buy-and-hold-strategy/articles/2017-08-28/does-bitcoin-belong-in-your-portfolio
That aside and not to be a wise ass or talk down but the mentality of your last post only but reaffirms my previous post. Lets take look at history, which always repeats itself as the market is just the greed and fear cycles of human nature put to numbers with charts and volume.
History tells us without fail that a big downside reversal can coincide with a climax run, which is another key sell signal. Bad reversals may involve the heaviest daily volume since the start of the big move, the largest one-day point loss, or the widest daily or weekly price spread ever.
If we apply the idea of Bitcoin to another once hyped "life changing, mind bending, institution wrecking technology"-- fuck the power company, I don't need them. I'm going solar, we can draw some parallels. I seriously doubt grandma was putting her 401k in solar.
Solar stocks were red hot in 2007. SunPower (SPWR), one of the best performers, recovered from a third pullback to the 50-day moving average following its initial breakout in December 2006. In September 2007, the stock ramped to new highs.
On Nov. 8, SunPower surged as much as 13% intraday, hitting an all-time high of 164.49. At its best levels that day, the stock was up more than 100% since the start of its rebound two months prior.
But SunPower then showed a big change of heart and ended 2% lower in huge volume.
The price spread from high to low was nearly 20%. SunPower continued to plummet and fell 68% by March 2008 eventually trading in single digits before rebounding.
I'm also not saying BTC will die, it will most certainly recover in some form be it Legacy, Gold, 2x, or whatever. The concept have proven itself. It may be like Apple, and crash to nill only to rise from the ashes to new heights.
http://www.wisebread.com/the-4-greatest-stock-reversals-in-the-last-decade
The volatility is insane at this moment. Check out the live markets. $100-$500 swings.
It is really crazy for sure, it's so easy to lose money right now if you are not careful. I am playing very tight swing trades acting as my on bot per say on the hourly and 15 minute charts. With this volatility you can market sell if you limit buy and still make some $. I wish Kraken were more reliable as you could be in and out quickly if it were, but it has API issues, gets you in twice, fails to update etc. I only use it for big moves that give me some time as their system is sub par.. but it pays...
Correct, but when Bitcoin gets to $50,000 and above, those would only be 1% to 3% gains and losses is what I meant.
You're spot on with that analysis and suggestions, in my book. Thankss!
Well verse. Whoa you spent 20 BTC last year.
Actually you are very truthful cause you did believe in it.
Now you are poised to rip more reward I assume.
I have been hearing a correction way before BTC reaches 5K.
What kind of correction is it going to be ?
CME and others sectors will start pushing the value up.
It is a definitely a WAIT and SEE moment.
I have to take some actions.
BTC could be 20k and I do not want to be in the sideline looking.
Keep on steemit.
Great post. I love BTC too. I've been in for years, but I am feeling similar to you. I am getting weary. It's becoming too main stream and everyone is thinking BTC will only go up. I think 2018 will still be bullish overall, but taking profits now could be a wise move. A correction is needed. Everything that goes up, must eventually come back down.
I still feel like Bitcoin has much room for growth and value, Warren has a good point but when you look at it many are still fearful of bitcoin thus time to be greedy?
Pure madness though how quickly we are growing that stock money sure gives everything a nice boost and we just scratched the surface in terms of money.
Even if just 1% of stock money went into bitcoin we would be looking at about 40k per bitcoin which does not sound unreasonable.
I guess I better start selling my plasma! :P
Keep your plasma and dollar cost average your way in.
Wow friend great information and suggestions about the future investment of profits. Thanks, I have also benefited a little bit by listening your sweet advices.Thank you so much, you are fantastic and wonderful person, bitcoin is awesome. Thanks, wish you a very beautiful time ahead my friend.
Great quotes by Warren Buffet! I appreciate it. I'm cautious now :)
but now extremly loss from botcoin becuse suddenly bitcoin rate donw from 11000$ and now approximately maybe 1000$ near that ..
So i should wait for some down rate then i buy it maybe its power up and gain the rate of bitcoin
Great advice! I'm frustrated that I've missed most of the move from 8K to 11K, but I have the feeling it will correct soon and there will be a better buying opportunity. It's crazy right now.. everyone loves bitcoin and the stock market.. no one loves gold. Time to buy
Ironic using a Buffett quote, since I hear he thinks poorly of BitCoin.
BTW, in another article, I pondered with the author about what would happen if BitCoin was ready to pull back and the expected stock market pull back happened at the same time.
Interesting thought. Makes sense since I think they're both due. I didn't put the two together in thought like that. The markets are waaaay over due and btc's rise lately indicates it should blow off a bit but I would think it'd go right back up. Thanks for the comment. Got me thinking.
The Buffet quote applies to any market.
so we still have good time to invest in bitcoin because bitcoin still have potential to reach 20k to 30k.
The higher to fly the tougher to land.
What do you base that on?
nothing special just trying to follow the trend.
If the gold market is ~$7T, there is plenty of room for expansion at $333B.