Markets took out 58k in style and is still heading to new high, I had previously marked areas of interest and market is in the larger ABC correction where C will take markets below 1k in the longer run.
Bitcoin’s weekly chart suggests it is a bubble in its final stages. Even outside technical analysis, Bitcoin checks all the boxes of a mania.
The long-term outlook remains high negative and the only question is when it if going to pop.
Lets look at why Bitcoin could be a bubble - many of us included, have been calling Bitcoin a bubble for years, yet it keeps going higher. It’s becoming increasingly hard for the skeptics to resist the pressure, especially as some big names appear to be embracing crypto
Elon Musk’s Tesla poured $1.5B in Bitcoin and said it is thinking about allowing customers to pay for its cars with it. Mastercard, the payments giant, announced it is about to start supporting select cryptocurrencies on their network. PayPal is doing the same. Goldman Sachs is restarting its crypto trading desk and Bank of New York Mellon is forming a new unit to help clients hold and transfer digital assets
But the thin line in all this is that none of these huge financial companies is actually using Bitcoin for its own business operations. They are simply going to earn fees from clients trading crypto. This is a big difference. In other words, none of them is actually “embracing” it. They are just taking advantage of the current mania to fatten their bottom lines.
Bitcoin is also an extremely inefficient payment method. The payments network of Visa, Mastercard’s main competitor, has the capacity to process up to 65000 transactions per second. Mastercard itself, can handle around 40 000 transactions per second. Bitcoin, on the other hand, manages just 7. Not to mention the energy consumption
n the modern world, this bias leads to irrational behavior and, among other things, the inflation of financial bubbles. It is extremely difficult for a person to watch his neighbor getting rich investing in hot tech stocks or cryptocurrencies and not give in and buy too at some point. But trees don’t grow to the sky and every bubble in history has collapsed. Eventually, there are no more greater fools left to push the price higher. The fact that Bitcoin has been called a bubble for years and is still rising doesn’t mean it is not a bubble. It only means it is a bigger bubble now than it was some years ago. And it too will burst. The only question is when.
Bitcoin’s weekly chart suggests it is a bubble in its final stages. Even outside technical analysis, Bitcoin checks all the boxes of a mania.
The long-term outlook remains high negative and the only question is when it if going to pop.
Lets look at why Bitcoin could be a bubble - many of us included, have been calling Bitcoin a bubble for years, yet it keeps going higher. It’s becoming increasingly hard for the skeptics to resist the pressure, especially as some big names appear to be embracing crypto
Elon Musk’s Tesla poured $1.5B in Bitcoin and said it is thinking about allowing customers to pay for its cars with it. Mastercard, the payments giant, announced it is about to start supporting select cryptocurrencies on their network. PayPal is doing the same. Goldman Sachs is restarting its crypto trading desk and Bank of New York Mellon is forming a new unit to help clients hold and transfer digital assets
But the thin line in all this is that none of these huge financial companies is actually using Bitcoin for its own business operations. They are simply going to earn fees from clients trading crypto. This is a big difference. In other words, none of them is actually “embracing” it. They are just taking advantage of the current mania to fatten their bottom lines.
Bitcoin is also an extremely inefficient payment method. The payments network of Visa, Mastercard’s main competitor, has the capacity to process up to 65000 transactions per second. Mastercard itself, can handle around 40 000 transactions per second. Bitcoin, on the other hand, manages just 7. Not to mention the energy consumption
n the modern world, this bias leads to irrational behavior and, among other things, the inflation of financial bubbles. It is extremely difficult for a person to watch his neighbor getting rich investing in hot tech stocks or cryptocurrencies and not give in and buy too at some point. But trees don’t grow to the sky and every bubble in history has collapsed. Eventually, there are no more greater fools left to push the price higher. The fact that Bitcoin has been called a bubble for years and is still rising doesn’t mean it is not a bubble. It only means it is a bigger bubble now than it was some years ago. And it too will burst. The only question is when.