It is happening now! Bitcoin hit over $5,600 today. This one is a fake out though. We will have another death cross and the real golden cross will happen mid summer
I still don't understand Bitcoin, and I don't invest in things I don't understand. It seems to me that the only advantage of Bitcoin over the dollar is for illegal commerce (drugs, gunrunning, kidnapping) and for evading taxes. No matter what everybody thinks, I don't engage in much illegal activity.
That is true that bitcoin has been used in a lot of illegal activities. So has the US Dollar, so what is your point? Besides anyone can look on the ledger and see every transaction, how much it was, where it came from and where it went to. This makes bitcoin pointless for criminal activities. Criminals would be more likely to use other cryptos like Monero or Dash which are privacy coins. What shows up on the ledger is that there was a transaction, bit no amount of shown nor the origination or the destination in the transaction.
The bigger deal is the underlying technology behind bitcoin. It runs on the Blockchain. Blockchain is the most secure, unhackable storage of data there is. It is being used already to store sensitive info like medical records and contracts and will have a lot more uses as time goes on.
As for the tulip mania... probably not. Cryptos are a market tracked by charts just like stocks in the stock market. Cryptos are still the wild west and are no different than when the stock market started. There are wide swings in value now that will become less drastic over time. It runs in cycles just like any other market. Cryptos run in 4 year cycles. If you compare charts from 2013 and 2017 it when the peaks in value happened, they are so similar they are spooky. Same with 2014 and 2018 and so far with 2015 and 2019. Every move was about the same percentage up and down. Each move also took a very similar amount of days. This is due to market psycology.
Crypto Markets are showing signs of stabilizing. The first run up was about 400x, not 400% meaning $1,000 at the bottom equals $400,000 at the top. The second runup was about 320x in 2013. The 2017 runup was 80x. The next one is projected to be 37x
The point of Bitcoin for illegal activities is that it is harder to track. This was one of the primary advantages for Bitcoin when it was first developed. It's good if Bitcoin can be tracked to check on hackers and criminals, but it still seems to be harder than dollars going thru checking accounts. Russian hackers, for example, have used Bitcoin payments to disguise the source of Facebook ads.
7 comments
I just read this story on Bitcoin in the NYT:
https://www.nytimes.com/2019/04/23/techn…
The bigger deal is the underlying technology behind bitcoin. It runs on the Blockchain. Blockchain is the most secure, unhackable storage of data there is. It is being used already to store sensitive info like medical records and contracts and will have a lot more uses as time goes on.
As for the tulip mania... probably not. Cryptos are a market tracked by charts just like stocks in the stock market. Cryptos are still the wild west and are no different than when the stock market started. There are wide swings in value now that will become less drastic over time. It runs in cycles just like any other market. Cryptos run in 4 year cycles. If you compare charts from 2013 and 2017 it when the peaks in value happened, they are so similar they are spooky. Same with 2014 and 2018 and so far with 2015 and 2019. Every move was about the same percentage up and down. Each move also took a very similar amount of days. This is due to market psycology.