Crypto thread

This is a classic bubble/mania trap. 97% of Bitcoin owners own 1/10th of a bitcoin or less. Therein lies your answer for how high the price has gone....mom & pop, your neighbor and the pet groomer are all buying Bitcoin. I had a friend that bought in at 10K despite my more conservative recommendations (XLF) and all I can do is eat crow right now. I sincerely hope people make money here, but you need an exit strategy because eventually the music will stop playing.

Above is my post from December 9th when Bitcoin approached 20K in my Bitcoin 10K thread. So call me a hater or negative or an interloper. I'm just trying to give my opinion and so far my advice has been spot on. Good luck to you sir. My advice would be to treat these investments like gambling money.

That was some major monster volume on the move today..which is actually quite amaturistic and stupid. Why ramp the crap out of this if you are wanting to go long, it had been in a bad slump just meandering and it wouldnt take that much effort to nibble here and there for a few days and save yourself millions of bucks in the process.

It reminds me of when I was on a trading desk for some institutions back in the day and these banks would call up and place buy orders or sell orders in large quantity and not care about the execution price, just do it and what is the total...stupidity for sure.

Tom Lee on CNBC reiterated his 25K price target for Bitcoin prior to year end. For what it's worth, the analysts there do prefer it to any other crypto.

Bitcoin certainly has a chance to continue this rally, especially if s&p earnings beat estimates starting next week. If the biggest asset class in the world (s&p 500) rallies, it's inevitable that some of that money finds its way into Bitcoin. 

That said, Tom Lee should puff and pass....he's got the good stuff.

Tim Draper might be a billionaire and a very smart man, but I doubt he really believes that Bitcoin will be 250K in 4 years. He has already made 200 million in profit on bitcoin and has stated that he never plans to sell it, so hyping bitcoin is good for his self interests....no? Draper also states that Bitcoin will replace all fiat currencies by 2022 and that fiat will disappear completely just one year after that. If you believe that, I have bridges in every state that I will sell you.....and I will accept government backed, fiat currency!

Just think about what he is saying. Bitcoin will have to post gains of 800% every 10 months for that to happen. Investing doesn't work that way.

I think Bitcoin settles at 10K eventually and stays there.

No doubt in countries such as Brazil and Venezuela, whom have devalued their currencies countless times and have suffered failures of their economies on an epic scale, Bitcoin has a place for people that have assets and cash but wish to avoid having their net worth lost to rampant inflation. 

Over the past half decade, the conversion rate to the USD has gone from 10/1 to 100,000/1. Think about that. So yes, Bitcoin is an EXCELLENT currency for wealthy people in countries suffering a deep state of economic failure. 

That said, countries in economic failure do not posess enough assets to move the needle on Bitcoin relative to the hype (neither 250K or 25K). 

I will say this Detox. Bitcoin is a wonderful asset for trading purposes. It's so tempting to trade between 6-10k. You are printing money while I sit on the sidelines. 

Looks like 10K will be tested. What happens after that is what has me interested!