Bitcoin Bubble


Bitcoin is a totally new asset class

Nobody knows what would happen going forward.

Discovery of fire is BIG.


Ok yes so Coinbase earns a ship load of money by moving bitcoins around. So if Coinbase ever IPOed then maybe I might just invest into it! However, does bitcoin earn itself a ship load of money by moving itself around??? :rofl:

Again… there is confusion with the different types of assets and what they entail. Bitcoin is in a bubble pure and simple. It is not a question of if but when it will pop and eliminate a huge chunk of wealth from a lot of people…


Money just poof? Shouldn’t it go from one pocket to another?


Um… my rants here are not to kick people out of bitcoin but just to entertain myself… :rofl:

I can care less if any of you decided to purchase bitcoin with all your life savings, or short bitcoin with all your life savings… :rofl:


Yes… one pocket to another… a great redistribution of wealth :wink:


I may short when I know and when shorting is possible!


Wrong concern. Since money moves from one pocket to another, you should be asking how you could profit from the burst.

Wait for OCC to create options for bitcoin.


Actually when bitcoin crashes it will drag stock market along with it. So if you want to hedge against it shouldn’t you make some money off it first? :smiling_imp:


When it happens, if AAPL is coming down from $200 to $50, what will you do? When correction comes, all stocks are getting swiped ! SHOP may go down to $5 !!


Why bother??? I have always enjoyed being the last person holding the bag when it comes to stocks… :rofl::rofl::rofl:


You just gave yourself an answer. Buy puts on stocks! Which stocks would tumble the most? AMZN? NVDA?

Well, following manch’s thought, long AI stocks especially NVDA. When bitcoin is about to burst, sell all and long puts. I have come up with the strategy, you put in the timing. Gave me 10% of your profit. Can’t indemnify your losses though.


If I know ahead, I will sell all NVDA, AMZN or AAPL, I won’t think at all.


You will not know until it is too late. Just hold on to the bag… won’t hurt!!! :wink:


I know your usecase was meant to be only an example but at least I didn’t get it. You must have used Square. What’s the big deal about adding an automatic tip calculation. All currency is digital and programs can be written around them. Bitcoin is based on blockchain and the benefit, as I understand, are transparency and independence from any Govt intervention. I don’t understand yet how there are more application layer programming capabilities compared to other currencies like USD that all of us already use in digital format. I already go months on end without ever withdrawing cash from ATM.


From my research yesterday, I found multiple articles that said transfer cost is not zero and will never be zero due to computation cost involved in maintaining the blockchain tech. At present, bitcoin transfers are costlier than Western Union. At current elevated levels, Bitcoin is not longer a useful medium of exchange but rather a commodity like gold or diamond that holds value due to speculation.

Et tu, Brute? Curious to know what vehicle you used - direct ownership on an exchange or a fund like GBTC?

Or maybe the Coinbase IPO will be the beginning of the end!


Indeed… the end might arrive long before Coinbase is able to file for an IPO… :wink:


I used to think pretty highly of James Altucher. But my god… how the mighty have fallen… :rofl:


Altucher? Really? That guy is a phony.


He called the bottom back in 2008 when everybody was doom and gloom. He is a perma-bull.


That was my point. No one is looking at the hardware and electricity cost of using crypto currencies. That alone makes it costly and impractical. It only makes sense for large transactions. For small transactions, the cost of executing the transaction is too high as a percent of transaction value.