BITCOIN touched USD 1800, what next NOW?
May 10, 17
BITCOIN
touched USD 1800, what next NOW?
Greetings from Hitesh! BITOCIN moved from
USD 1000 in March to USD 1800 in May, 80% in less than 3 months – what else you
want? It was 100% FREE RECOMMEDATION to all our readers. I can give you all
advise under the Sun but you have to have the GUTS to experiments with that. If
you have no GUTS, even God can’t help you.
We have written 2 posts on BITCOIN – one in
March and one in last week. We have dealt with what is BITOCOIN? and other
details in MARCH post. You can read it – if you are NEW to the SUBJECT.
Number
of CRYPTOCURRENCIES and their MKT CAP:-
Most guys have heard the name of BITCOIN as
an ONLY CRYPTOCURRENCY. But as of now there are more than 800 different kinds
of crypto currencies. You would be surprised to know that there are just 196
countries in the WORLD. They all have their currencies plus these 800 plus
crypto currencies.
The total market capitalization of the
CRYPTO CURRENCIES is USD 5 TRILLION. As per WORLD GOLD COUNCIL the value of above
the land GOLD is around USD 7 trillion as on today. So, CRYPTO CURRENCIES are
near to GOLD in terms of DOLLAR Value.
WHAT
is NEW THIS TIME?
Some one said that – “The only thing NEW in life and Market is the
HISTORY you have not READ”. This applies to BITCOIN and all CRYPTO CURRENCIES also.
Let me take you 500 years back in 1600. There
was a BOOM for TULIP BULBS in HOLAND.
In 1593 tulips were
brought from Turkey and introduced to the Dutch. The novelty of the new flower
made it widely sought after and therefore fairly pricey. After a time, the
tulips contracted a non-fatal virus known as mosaic, which didn't kill the
tulip population but altered them causing "flames" of color to appear
upon the petals. The color patterns came in a wide variety, increasing the
rarity of an already unique flower. Thus, tulips, which were already selling at
a premium, began to rise in price according to how their virus alterations were
valued, or desired. Everyone began to deal in bulbs, essentially speculating on
the tulip market, which was believed to have no limits.
The true bulb buyers
(the garden centers of the past) began to fill up inventories for the growing
season, depleting the supply further and increasing scarcity and demand. Soon,
prices were rising so fast and high that people were trading their land, life
savings, and anything else they could liquidate to get more tulip bulbs. Many
Dutch persisted in believing they would sell their hoard to hapless and
unenlightened foreigners, thereby reaping enormous profits. Somehow, the
originally overpriced tulips enjoyed a twenty-fold increase in value - in one
month!
Needless to say, the
prices were not an accurate reflection of the value of a tulip bulb. As it
happens in many speculative bubbles, some prudent people decided to sell and
crystallize their profits. A domino effect of progressively lower and lower
prices took place as everyone tried to sell while not many were buying. The
price began to dive, causing people to panic and sell regardless of losses.
The DUTCH economy
suffered heavily in 1634 – 1637 due to this fall.
So, there is nothing new THIS TIME.
Why
So Many CRYPTO CURRENCIES?
Let us go back to the FALL of 2008 and
consequent fall of ECONOMIES WORLD WIDE. Frankly there were not many big
opportunities for BIG money post 2008. So, they invented this way to make
money. Investors, who bought BITCOIN like TULIP BULBS at the initial state at
USD 1 or less, have made tons of money in last 8 years. The NEW PEOPLE who are
entering now – are taking HUGE RISK as the GAME CAN REVERSE anytime. Do you
remember – ANALYSTS and EXPERTS talking about REIANCE touching Rs.5000 in 2007
when it was a Rs.3000? It went to Rs.650 instead in less than a year in 2008.
Anything can happen in MARKET and LIFE.
Another reason for such a multifold rise is
MONEY PRINTING by FED / JAPAN and EROPEAN countries. The SMART money went into
THESE CURRENCIES and the price is moving up as if there is no TOMORROW.
Who
are the BIGGEST WEALTH DESTRUCTORS?
Government of the respective country and
central banks are always the biggest culprit who can loot you and your money
just like that. They allow scam to happen in the first place. When the NORMAL
people join the game - they declare it illegal or some change in law and the
normal guys are finished. Look at HOUSING BUBBLE in USA.
They have allowed blossoming CRYPTO
CURRENCIES in last 8 odd years. Now, the NORMAL guys are entering into the
game. Many guys in INDIA have bought at Rs.40000 to Rs.60000 and current rate
is Rs.115000 in India. They all are expecting Rs.2 lakh fast. Many GREEDY GUYS
will enter at this price also and these are the guys who would be taken for a
RIDE by the BIG GUYS in coming times.
BITCOIN is Way of TRANSMITTING Money and it
is not an ASSET. The way you transfer money through CHEQUE – here you are doing
through BITCOIN. The amount on CHEQUE can be anything but the bank charges just
Rs.2 per leaf of CHEQUE after you exhaust your FREE CHEQUE LEAF LIMITS.
What
NEXT?
There is no FREE LUNCH. Don’t be GREEDY or
you will lose your HOUSE/ LAND and PROPERTY the way DUTH lost in 1637.
Make smart CHOICE – learn scientific way of
investment from our course on WARRN BUFFETT NEWS LETTERS.
You can also learn and earn by becoming our
MEMBER for investment ADVISORY SERVICES.
Have a HAPPY INVESTING.
Live With
Passion…Invest With Passion.
Hitesh Parikh.
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