As I am currently preparing for a talk, I tried to study different bubbles and crashes in history and how it compares to where Bitcoin is right now. This will just be quick, as I just want to show you something based on what the chart is saying. In no way am I trying to forecast what will happen but the intent of this is to show people that bubbles do happen and asset classes do crash when there is too much greed involved.
Catch me in my live training events! (quick plug)
The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.
Stock Smarts CDO — January 13 – 14, 2018
Investor Insights 2018 — January 20, 2018
Stock Smarts London — January 26 – 28, 2018
Stock Smarts Dubai, UAE — February 9 – 12, 2018
Stock Smarts Manila — March 3,4,17,18 & 24, 2018
Below is the tulip bubble
This happened way back when there was a Tulip Mania that brought the prices of tulip from literally nothing to 200 in just a few months. After great heights, the price of tulip dropped back to barely nothing.
Bitcoin vs the Dot-Com Bubble
This looks interesting. The picture to the left shows where Bitcoin is as of the present. It’s currently at 14,121 USD vs 1 Bitcoin, this is down from the highs of 20,000 vs the USD.
The picture to the right was the Dot-Com bubble of the early 2000s. The Nasdaq went up from 1,000 – 5,000 in 5 years and crashed the next two years to 1,000+ levels.
No one has a crystal ball.
Is this the future of Bitcoin and will follow the shape of the dotcom bubble? Or will it buck the trend and come out even higher than where it is now?
No one has a crystal ball to know where things are headed. That’s why to everyone who plan to invest for the first time, it’s very important that you study each investment and you know the risks attached to it. Know what you are getting into. Do not just come in just because everyone else is doing it. Form your own opinion and base your decisions from sound fundamentals and technicals.
Short term indicators are now showing bearish sell signals while the mid to long term indicators are still saying that the trend is still up. For those following the trend, please make sure to follow your indicators well and sell when the parameters warrant a sell.
To those who cashed in already and made lots of money. Congratulations! I hope you use the money to create opportunities to other people who can’t create opportunities for themselves.
To those just starting, I hope this helps you.