Quotes by TradingView
Trading carries a high level of risk, and may not be suitable for all investors. You should never invest money that you cannot afford to lose.

Monday, 22 January 2018

Beyond the Bitcoin Bubble (NY Times)

The entire world economy is booming

Why I don't think Bitcoin and Cryptocurrencies are in a bubble. According to analysts, we are in a "secular bull market".

Strategist Jeff Saut: The 8-year-old bull market still has up to nine more years left

"Raymond James believes there may be nearly a decade left in this secular bull market, which is defined as a market that's driven by forces that could be in place for years. It's not to say that there can't be corrections or even a bear market along the way. But he said the secular bull should prevail."

In other words:

  • all the assets are in a bull market: stocks (S&P 500, Dow Jones), Nikkei index (Asia/Japan), Commodities, crypto-currencies, the Euro vs Dollar, Chinese Yuan vs Dollar, etc. 
  • there will always be small corrections, or short-term bear attempts
  • the overall uptrend will prevail

Jeff Saut: "This is going to be the longest, strongest secular bull market of my career and I've been in the business 47 years."

So if you insist, you can say the entire financial system is in a huge bubble. In this case why should I care that Bitcoin is in a bubble?

Until now all the asset classes are highly correlated in long term. For this reason common sense tells me that if at some point the bubble will burst, the entire bubble will burst, unless the correlation will change.

Building something more important than wealth

The blockchain and the cryptocurrencies trend is building something much more important than wealth; It is a brand new technology with huge potential both technically and socially.  The blockchain is here to stay.

Beyond the Bitcoin Bubble (New York Times)

02/02/2018 Update: If you think only Bitcoin or only cryptocurrencies are in a big bubble, better take a look at the following chart


No comments:

Post a Comment

Trading carries a high level of risk, and may not be suitable for all investors. You should never invest money that you cannot afford to lose.

Post─âri populare

Trading carries a high level of risk, and may not be suitable for all investors. You should never invest money that you cannot afford to lose.