Tuesday, July 11, 2017

Crypto Bubble Pop


Presenting to you... Bubble Pop! (pro tip: pause at 0.27)


Wow, I'm impressed. It took the market this long to realize that it was in a bubble. But hey, it might obvious to you and to me, but look at all the people still in the S&P500, amirite? Hur hur.

As history as my evidence, on 13th June 2017, I did call out the ridiculous bubbly nature of the crypto market.

Anyway, I'm fairly certain that this is indeed mania. Will ETH be $380 still next week? I seriously don't know about that.... Drop back to $10 and let me get in, will ya?
Just a heads up, with such a massive pump, it is probably prudent to be on your toes and watch out for the possible massive dump that comes after. - GMGH, 17 Jun 2017

Hey, $114b compared to the $116b when it peaked is pretty darn good imo, less than 2% off!

Will crypto prices go down in the future? Actually, I really hope that it does. To me, it is a bubble for the current participants and the froth is still in the midst of settling. I wouldn't be surprised if cryptos continue to lose value over the next few months.  - GMGH, 6 Jul 2017

Another way that I could tell that this was absolutely coming was the fact that some shitcoin called Digibyte made it into the crypto Top 12 in June. Bytecoin was more fantastic and managed to get into top 6 in May. There were PLENTY more than have surged from dead projects and they are all going back to fair value now - zero. When people are just buying whatever for no good reasons, I think it's a pretty good sign of bad things to come.

Now that the market is down to under $80b (30% drawdown), I think it's safe to say that I am validated in my call that it was ridiculous just a few weeks ago, that and also for everyone to stop kidding themselves to HODL and that coin and that coin is going TO THE MOON. A lot of coins are NOT going to participate in the next bull market.


I hate the word HODL. What does it mean? It means to hold. Why do people type hodl? Because a lot of people that "invest" in crypto are unable to spell, that's why.

Now quite a lot of these people (not all, but a lot) who spell hold as hodl have not only been pumping shitcoins like Bytecoin, but they have been pumping up the entire market. Almost 99% of these people do not understand just exactly what they are investing in, other than that if you hodl, it goes to the moon and then you get to drive a lambo to work to resign in a week. Expected returns are 100% within a year. Well then lads, these prices ain't gonna cut it.

Blockchain technology is amazing, but I cannot stress it enough that the failure rate is astronomical.

Where we go from here, nobody knows.

We could go back to down 60b or even 45b. We could bounce around 40-60b for the next 2 years. We could go back up to 110b. Anything could happen. Personally, I'm positioned for a long, drawn out bear market to shake out all the weak hands who have just realized that the majority of their holdings are in some shitcoin peddled to them by a 16 year old kid with a crypto youtube channel who probably got paid peanuts to pump and hype coins.

All I can say is that if you invest in cryptocurrencies, be prepared for some crazy times. This is the wild wild west after all.

Cryptocurrencies are the wild wild west. You think buying shares in small caps are risky and volatile? Pfft, you've obviously haven't heard of cryptocurrency investors and speculators. - GMGH, 6 Jun 2017

Stay safe, stay level-headed and don't take risks that you don't understand.

7 comments:

  1. HODL stands for Hold on for Dear Life. Coined (pun intended) by some drunk forummer on BitcoinTalk.

    ReplyDelete
    Replies
    1. https://bitcointalk.org/index.php?topic=375643.0

      He spelled hold wrongly and people just took it from there and gave it a less ridiculous meaning (hold on for dear life) since explaining why everyone uses the meme HODL instead of hold is both stupid and embarrassing af.

      It's okay that people use it. I just think it's really ridiculous to hear adults say "HORDDEL" and "I'm HORDDELING" when really they could just say hold and holding. To each their own, but I roll my eyes every time I hear it.

      Delete
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  3. Love this! I wrote in May about the bubble too haha but not on my blog. Didn't realise the bubble already started bursting until I saw your post today :P

    ReplyDelete
    Replies
    1. Hey BB,

      Where did you write it at? I didn't know you kept up with cryptos. Hopefully things gets even worse, waiting for the Great Crypto Sale now!

      Delete
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