Bubbles
I used to be pretty good at blowing bubbles, a bit out of practice now...
*** This is not intended as financial advice. This is just the musing of an old nutter.
What is a Bubble
In my own words, I would say a bubble is an event where the value of a certain commody continues to reach a point where it is no longer teniable. Once the tipping point is reached and the bubble bursts, the subsecquent price correction is usually quick, painful and extended.
Some History
The first bubble that comes to mind was the tulip bubble in the 1600's. Yes we are indeed talking about flowers, or more precisely the bulb that will yield the plant that will produce the flower! Basically tulips became a coveted status symbol. Can you imagine, and this is from Wikipedia that the value of a single, yes one, tulip bulb was worth 10 TIMES! the annual wage earned by a skilled craftsman!!!
Recent History
The most recent bubble many of us will remember (at least in the US) was the housing bubble starting in about 2007 or so. It was an era of liar loans where seemingly no request to borrow an astronomical amount of money based on no, or at best shaky collateral, was too much. Banks and then the government through Fannie Mae were on the hook for loans that never had a chance of being repaid. The house would be repossessed and sold into an already falling market for a huge loss that only compounded the problem more!
Back in the Day
Is This a Crypto Bubble?
I don't know. The funny thing about the previously mentioned bubbles is they keep going, and going until they don't! The point is they go long past the point of making sense. So who knows when it will stop.
Advice
I personally have no advice to share. However there is a neat saying that seems to make a lot of sense to me. "Be greedy when others are fearful, and be fearful when others are greedy". Those are the words of a man I highly admire and knows a thing or two about investing...Warren Buffett.
Steem On My Friends!
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Excellent work dear friend @ old-guy-photos, a very interesting post, thank you very much for sharing
Thanks for the nice words, upped.
"I'm forever blowing Bubbles and Bubbles is forever blowing me" Oh never mind... From everything I've seen there is no crypto bubble... I watched something yesterday where Bix Weir said that the crypto market is still like getting in on Apple on day one! He compared it to baseball saying "If this is a 7-game World Series- this is still the pre-game show!"
I hope you are right because we are constantly "buying" Steem with every post we do! Upped!
I read a post by Lasseller (I know I spelled that wrong) that predicted $10 in 2-4 months... $100 in 3-12 mos and $700 by 2020!!! If that's right WOW. I watched a video where the guy said that crypto is still in its infancy. Bitcoin is around $2700 and should hit $10,000 by 2020.
Love your first picture. Hope it 'worked' and you are not still trying to get it off the glasses and out of your hair ( :
Enjoyed your article. There is no seeming rhyme or reason to it all, and a wild ride every time. The housing one was pretty much disgusting, and huge effects on folks for a long time to come. Glad I missed out on that one.
Thanks for the great read and info, and lack of advice, as I have no money to invest anyway. But it's fun to dream.
Thank you for your kind words and support! It sure is fun to watch and be a small part of. Really we are both investing in it to some degree with every post we pen :)
Your bubble really caught my eye! Nice shot!!! 😂 funny