Key Post Bitcoin is a clearly identifiable economic bubble

Gordon Gekko

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Hi Mr. Burgess,

That is true - but there may be a justifiable premium to be paid for Bitcoin in return for the convenience of being able to make instant worldwide payments, with no currency conversions etc. Obviously, I am not suggesting that the premium should be in the $8k-$10k per Bitcoin range :)
As evidenced by the 20% flash-crash which just occurred...
 

Brendan Burgess

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https://www.cnbc.com/2017/11/29/bitcoin-plunges-18-percent-after-topping-11000-in-extremely-volatile-trading.html

Bitcoin plunges 18% after topping $11,000 in extremely volatile trading
  • The digital currency dropped more than 18 percent from a record high of $11,388.33 to current levels around $9,292 on Wednesday, according to CoinDesk.
  • Trading was extremely volatile as exchanges such as Coinbase's GDAX struggled to keep up with the surging demand.
I am sure that must be a buying opportunity.

Brendan
 

Gordon Gekko

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Apologies to those who’ve already seen the above chart...it compares Bitcoin with the tulip bubble of the 1600s and other bubbles.
 

Brendan Burgess

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Bitcoin Bubble Makes Dot-Com Look Rational

Take dot-com stocks, which were the biggest bubble of the past few decades, and likely the largest in stock market history. At the height of the dot-com stock bubble, the technology-heavy Nasdaq stock index had a price-to-earnings ratio of 175. In the past year, bitcoins have generated transaction fees of nearly $219 million. And at $9,600 a piece, the total value of all bitcoins -- their market cap -- now tops $155 billion. That gives bitcoins the equivalent of a trailing P/E ratio of 708. That means based on valuation, bitcoins are four times more expensive than dot-com stocks were at the height of their bubble.
 

ant dee

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Transaction fees are not dividends. Miners get them, along with the block reward. A bitcoin does not cost $9,600 for a miner to mine.
You do not get earnings when you buy a bitcoin. 'Bitcoin' does not owe you anything when you buy a bitcoin.
 

Gordon Gekko

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Many people who use leverage / margin to trade Bitcoin will have been carried out yesterday.

An example of the dangers of gearing combined with poor quality underlying investments.

I suspect that the people scrambling to buy Bitcoin would have been over in Sunny Beach buying duplexes.
 

RedOnion

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It's pretty incredible to see the graphs.
Where else could you see a 20% drop, and still be up on the previous day's price?
 

ant dee

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Gordon

I don't think anyone could be that stupid to borrow to buy Bitcoin????


Brendan
Oh I have heard a few stories of people re-mortgaging their homes to buy crypto!
Stupid thing to do, doesn't matter that they made good profit.
Even in this bull market im certain some managed to lose it all in some scam.
 

ant dee

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Don't forget people borrowing to get bitcoin, leaving it on MtGox exchange, exchange goes bust and people losing it all!
 
D

Dan Murray

Guest
This bitcoin certainly divides the jury! There was a lot of heat (not sure how much light) in a discussion I got involved in over the weekend. At least, it contained a good gag which like all good gags is a little close (but hopefully on the acceptable side) of the line. So dear Moderators - Permission sought to share!!

***********

Mary & Johnny goes out for a meal and reflect on their somehow gotten gains from these bitcoin things. "Jeepers, Mary - did you ever in your wildest dreams think we'd be sitting together with all this cash?"

Mary looks tenderly into her hubby's eyes, smiles knowingly, leans forward seductively and says "you know honey......you've never actually appeared in my wildest dreams."


DM
 

MrEarl

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1,957
Gordon

I don't think anyone could be that stupid to borrow to buy Bitcoin????

Brendan

Hello Mr. Burgess,

Sadly some people are that stupid, no doubt motivated by the desire to make massive profits quickly and forgetting about the serious potential risks.

I just put it into google and found a website offering up to 100x !

Absolutely crazy stuff and doesn't even come with any sort of warning from what I can see.
 

fpalb

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190
yup you can trade at 100x leverage if you choose. The consequence of freedom of money (free as in speech, not as in beer) is that you'll have unregulated exchanges in addition to regulated ones. With freedom comes responsibility, the nanny state won't protect you from yourself when it comes to bitcoin.
 

cremeegg

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I just put it into google and found a website offering up to 100x !
Where can I get that. If I put up €100, I get to invest €10,000 ? Seriously?

If I make a profit great. If I make a loss they can contact me at cremeegg c/o aam.
 
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