Are You Waiting For The "Bitcoin Bubble" to Burst? Don't Hold Your Breath. By Gregory Mannarino
The value of bitcoin is surging as Fiat currency stagnates.
It seems that cryptocurrency is in fact the place to be, as the uninformed sit uncomfortably by watching the value of their central bank issued notes falling under pressure.
So what are we witnessing with regard to these new sources of wealth known as cryptocurrency?
To anyone with even a basic understanding, the answer is exceedingly simple.
People are losing their faith in the ability of world central banks to keep the purchasing power of their issued notes from falling. Moreover, people are also understanding that central banks will continue to force the value of their issued notes even lower..It is also exceedingly obvious that king dollar is not so king anymore, as more and more governments are omitting the dollar in bilateral trade.
I am of the firm belief that along with the epic rise in the value of cryptocurrency, it will not be long before governments themselves begin to accept payment in the form of cryptocurrency, and for anyone out there waiting for the cryptocurrency "bubble" to burst I have news for you, we haven't seen anything yet with regard to the realized end value of this asset.
For any asset to actually be in a bubble, it must first be widely held. To put a perspective on "widely held," let's look at another asset, housing which is currently in a huge bubble. Housing is obviously widely held.
Many people throw the term "bubble" around without having the slightest clue of how to recognize one.
In order for an asset to be in a bubble two things must happen.
- It must be widely held and 2. The said asset must move above the ability for an individual who is making an average salary to afford it.
Gregory Mannarino
Great.
Invest in Steemit.
Yes indeed 100% agree with you!
Also watch the market cap overall and by bitcoin. This will continue sending shockwaves into the traditional finance sector. I expect that Japan will only expand the bitcoin universe, and other countries will follow.
That is the difference between precious metals and Bitcoin - the Bitcoin trade is not rigged by the powers behind the stage. Else PMs would skyrocket as well, perhaps even more than Bitcoin.
Excellent comment. You are correct.
I agree with your statements, a lot of people smarter then me are saying the same thing, the only thing I don't like is overnight it could all become a big zero.
Sorry to disappoint you but overnight the USD could become a big fat zero too. All about confidence...
and keep in mind, pm's will never become a big fat zero.
Oh, I agree and I don't think they will.
You're right, it all could come crashing down, or it could take off to the moon in a year and you'll be set to retire. Nobody knows for sure. So, whatever amount you decide to invest (if you invest at all), be comfortable with the idea, beforehand, that odds are there that you WILL LOSE that money. If you're ok with that risk, then you're in good shape and can make rational decisions with your money.
True!
Mind you, to buy a whole bit coin is almost becoming affordable to me...I'll have to just go with a 'bit' of a Bitcoin!!!
Same here! But that "bit" of a bitcoin is still way more than most have and who knows what it'll be worth when and if it's everyone's currency and there is no more mining. A time when everyone will need tiny fractions of your "bit" just to have some. Interesting..............
Great article
I really appreciate you saying that.
Right on Cue, Greg - Thank you again for your quick fire truths.
Thanks Greg what do you think is the best strategy to get in the cryptos? Get in your position or dollar cost averaging over the mid-term?
Thanks for the info Greg!
Glad to help. You are welcome.
Greg, you state, "People are losing their faith in the ability of world central banks to keep the purchasing power of their issued notes from falling."
I believe that the true power of cryptos (example: Bitcoin) lies in the fact that they are WORLD WIDE. It won't take the collapsing of the USD to push the value higher, but rather, as currencies around the globe crumble, it will propel these prices higher as people look for conventional and non-conventional places to store their money.
Thanks for the post today!