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Bitcoin bubble is popping

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    Bitcoin bubble is popping

    As of now, it's down 28% and has been as low as 35%.

    #2
    This is the second time its popped this year alone. Buy the dips... sell the mania. This game is relatively easy compared to the stock market.

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      #3
      Originally posted by Spiffster View Post
      This is the second time its popped this year alone. Buy the dips... sell the mania. This game is relatively easy compared to the stock market.
      Which means that it's speculation, not investment...

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        #4
        Looks ok to me. Not my cup of tea, but certainly worthy of consideration for any speculative dollars you may have lying around.

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          #5
          Originally posted by Nutria View Post
          Which means that it's speculation, not investment...
          Not that I stated such in my reply, but can you please explain how bitcoin is not an investment because its speculative? To me this appears to make no sense whatsoever as those two things are certainly not mutually exclusive.
          Last edited by Spiffster; 09-27-2017, 12:41 PM.

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            #6
            Originally posted by Spiffster View Post
            Not that I stated such in my reply, but can you please explain how bitcoin is not an investment because its speculative? To me this appears to make no sense whatsoever as those two things are certainly not mutually exclusive.
            Speculation and investing are two different things. From Investopedia:
            The main difference between speculating and investing is the amount of of risk undertaken in the trade. Typically, high-risk trades that are almost akin to gambling fall under the umbrella of speculation, whereas lower-risk investments based on fundamentals and analysis fall into the category of investing. Investors seek to generate a satisfactory return on their capital by taking on an average or below-average amount of risk. On the other hand, speculators are seeking to make abnormally high returns from bets that can go one way or the other. It should be noted that speculation is not exactly like gambling because speculators do try to make an educated decision on the direction of the trade, but the risk inherent in the trade tends to be significantly above average.

            As an example of a speculative trade, consider a volatile junior gold mining company that has an equal chance over the near term of skyrocketing from a new gold mine discovery or going bankrupt. With no news from the company, investors would tend to shy away from such a risky trade, but some speculators may believe that the junior gold mining company is going to strike gold and may buy its stock on a hunch. This would be speculation.

            As an example of investing, consider a large stable multinational company. The company may pay a consistent dividend that increases annually, and its business risk is low. An investor may choose to invest in this company over the long-term to make a satisfactory return on his or her capital while taking on relatively low risk. Additionally, the investor may add several similar companies across different industries to his or her portfolio to diversify and further lower their risk.
            Steve

            * Despite the high cost of living, it remains very popular.
            * Why should I pay for my daughter's education when she already knows everything?
            * There are no shortcuts to anywhere worth going.

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              #7
              I wouldn't call it "popping" just yet.. though it may well be. It's just a very volatile market.. the trend has been up this year.

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                #8
                So the difference between speculation and investing is primarily level of risk.
                OK so how is the stock market is not speculative? There are absolutely individual stocks that can be considered speculative due to high risk / volatility.

                "This is the second time its popped this year alone. Buy the dips... sell the mania. This game is relatively easy compared to the stock market."

                "Which means that it's speculation, not investment..."

                Considering context of the thread ^^^ I still dont see how the stock market falls soley under investment while BTC is speculative (which I agree, it is). So same can be said for both.
                Last edited by Spiffster; 09-28-2017, 10:12 AM.

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                  #9
                  Originally posted by Spiffster View Post
                  So the difference between speculation and investing is primarily level of risk.
                  OK so how is the stock market is not speculative? There are absolutely individual stocks that can be considered speculative due to high risk / volatility.

                  "This is the second time its popped this year alone. Buy the dips... sell the mania. This game is relatively easy compared to the stock market."

                  "Which means that it's speculation, not investment..."

                  Considering context of the thread ^^^ I still dont see how the stock market falls soley under investment while BTC is speculative (which I agree, it is). So same can be said for both.
                  Stocks definitely can be speculative. The 1990s tech bubble is a prime example.

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                    #10
                    Bitcoin is most definetly in a bubble. But bubbles have a habit of going further than anyone expects. Personally I think there is a good chance we are somewhere around a top, but it could EASILY keep going. Betting against bubbles is an amateur play, but smart investors will be banking profits now and scaling out of their investments, reducing risk as volatility rises.

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                      #11
                      That bubble has "popped" all the way to $7300. This is why I stick to mutual funds...
                      Attached Files

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                        #12
                        A lot of people are making bank off this...more power to them. Yeah its a bubble...but that bubble may inflate to $20,000 for a single bitcoin...who knows. My risk tolerance isnt high enough to play with this.

                        I remember in 2009 when berkshire hathaway stock...for a single share of their A stock was around $100,000. I couldnt imagine who would buy that. Today its up to $280,000. I still couldnt imagine who would buy that.

                        Yeah I know bitcoin and berkshire are galaxies apart...just one of those stocks I remember seeing at $100k and thought "my god."

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                          #13
                          As of now only a small fraction of people have wandered into the bitcoins.

                          There's still enough room left before it can pop if it will.

                          we don't know how much.

                          While writing articles as a freelance writer, I came over things like Chinese money laundering.

                          Every bitcoins enthusiast knows how popular bitcoins is in China , as its a nice way to launder all the corruption money people have. And the real estate money, almost everyone knows about the real state boom in China and ghostcitities.

                          Everyone knows why bitcoins is rising so fast, not just Chinese people but peopel from around the world is trying to grab a bit of bitcoins as quickly possible before the price doubles.

                          We know Bitcoins is not the paper currency but the money that is fueling this crypto-currency is based on real world businesses. And this businesses can't garuntee you that they will be there forever.

                          So we know there will be a burst, but we don't know when.

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