More than technical analysis, this is simply my opinion on Bitcoin. Bitcoin has made people that have never touched an investment in their life, "trading geniuses." More often than usual, I have heard people that have little to no investing knowledge talk about Bitcoin as if they had been analyzing it for years. Let's look at a hypothetical case study, Joey from down the street, who knew nothing more than video games before encountering a Coin Base ad, is now the king of Bitcoin. He has been making profits like never before, and has decided to keep reinvesting his profits; better yet, he has put all his life savings into Bitcoin. But guess what? Unfortunately for Joey, when people like him take the pilot seat and steer the price of a certain stock or currency into the sky, it is usually a bad sign. People are jumping onto the bandwagon of bitcoin and are being transported to a very deep and dull end. See the thing about Bitcoin is that it's premise lies on its hyperactive volume. This is why we have experienced the gigantic drop shaded above, and will continue to experience bearish trends. To me, it very much seems like 2008 when everyone decided to hop in on MBS', or 2000 when everyone thought they were tech experts and lost everything. People, because I'd rather not refer to them as investors, are digging their own financial grave as they pave the way for the smart ones to come in and cash out before the boat sinks.
To deviate from the obvious, let me explain why Bitcoin will not exist 10-25 years from now. Bitcoin, as explained by Warren Buffet, does not meet the requirements for a currency. Let me explain this, it is nearly impossible to buy goods with bitcoin, not only because it's not accepted in many business', but also because its price is fluctuating by the minute in relation to the price of the dollar. Cryptocurrencies, as tech as they sound, will never be the equivalent of a physical currency because they lack governmental backing. Let's analyze this, the US dollar did not pop up from an ad on the internet, the US dollar has a history in which it has been modified to improve based on its previous faults. Bitcoin is not backed by any governmental statue, neither is it regulated the way it should be. Before the hype, Bitcoin was actually utilized for "black market" transactions, which shows its lack in regulation.
This "currency" will not last that long in my opinion, and needless to say the crash is pending to happen, and once it does we will have all these "bitcoin geniuses" go back to their daily routines which do NOT involve investing. However, just like in 2008, many people profited from the bullish period before the bearish days arrived. At the end of the day, it will all just come down to psychological behavior when investing, whether to settle or to reinvest. I am fully open to new ideas or discussions, please feel free to reply and maybe change my mind on this "next big thing." You can reach me through the comments, email me (francescochiappe@outlook.com), or Instagram DM me (@checooo_).
To deviate from the obvious, let me explain why Bitcoin will not exist 10-25 years from now. Bitcoin, as explained by Warren Buffet, does not meet the requirements for a currency. Let me explain this, it is nearly impossible to buy goods with bitcoin, not only because it's not accepted in many business', but also because its price is fluctuating by the minute in relation to the price of the dollar. Cryptocurrencies, as tech as they sound, will never be the equivalent of a physical currency because they lack governmental backing. Let's analyze this, the US dollar did not pop up from an ad on the internet, the US dollar has a history in which it has been modified to improve based on its previous faults. Bitcoin is not backed by any governmental statue, neither is it regulated the way it should be. Before the hype, Bitcoin was actually utilized for "black market" transactions, which shows its lack in regulation.
This "currency" will not last that long in my opinion, and needless to say the crash is pending to happen, and once it does we will have all these "bitcoin geniuses" go back to their daily routines which do NOT involve investing. However, just like in 2008, many people profited from the bullish period before the bearish days arrived. At the end of the day, it will all just come down to psychological behavior when investing, whether to settle or to reinvest. I am fully open to new ideas or discussions, please feel free to reply and maybe change my mind on this "next big thing." You can reach me through the comments, email me (francescochiappe@outlook.com), or Instagram DM me (@checooo_).