For your own good, I hope you don't believe in what you said... 'cause it's a totally unsustainable and stupid notion.
bitcoin bubble getting out of control...surging non stop. up over $600 now
- Thread starter S2007S
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For your own good, I hope you don't believe in what you said... 'cause it's a totally unsustainable and stupid notion.
As per my previous posts, I have no position in Bitcoin.
The reasons given today for why Bitcoin is in a bubble are the same provided 50% lower in April when it first traded above $250. For all we know, it could go to $6,000 before "crashing" to $600, and anyone who shorted it at $250 in April might be academically right, but wrong financially.
At the very least, Bitcoin is rumored to be used frequently for secrecy purposes (eg. purchase of drugs), so there is some viable long-term transactional usage there.
Regardless, still doesn't justify a 50X fluctuation in value. Only fools would venture into such speculations.
...as stated by an trader who participates in markets where prices fluctuate every second due to perception, not tangible changes in the real world...
What applies to stocks, bonds, futures, currencies also applies to bitcoins, horse-trading, real estate, Beanie Babies on eBay, comics and baseball cards, refrigerators in Venezuela, etc, etc, etc..
Perceptions and beliefs rule the world, not logic and fundamental data..
That's just total HOGWASH... apparently you don't see why.
Different opinions make a market. The same argument ("wild fluctuations in value"; "speculations") could have been made in April, but using 25X instead of 50X.
But I'm interested, let's say the Winklevoss Bitcoin ETF was listed on the NYSE or Nasdaq today:
Would you short it at $594 ?
If yes, with what percentage of your account value?
Would you place a stop-loss on the position, and if so, at what price?
You think it's hogwash...
I think it's an interesting phenomenon worth watching...
Another person views it as an opportunity to exploit...
We're all right... No one is wrong...
We sometimes see a stock go up 50x in a couple of years, but a currency??
In April:
A hypothetical trader with a multi-month timeframe bought Bitcoin at $250. A different trader with a multi-day timeframe shorted Bitcoin at $250.
The multi-day trader covered at $120 a few days later.
The multi-month trader sold today at $550.
Both made successful trades based on their different timeframes and different views on the currency.
A hypothetical trader with a multi-month timeframe bought Bitcoin at $250. A different trader with a multi-day timeframe shorted Bitcoin at $250.
The multi-day trader covered at $120 a few days later.
The multi-month trader sold today at $550.
Both made successful trades based on their different timeframes and different views on the currency.
That's not the issue... rather, "how can such changes rationally reflect a valuation in CURRENCY?"