I am a sinner...I still can't believe myself but I bought bitcoin....
Yeah, I am an investment profesional. Or I thought I was? Not directly but through the Galaxy Bitcoin Trust which holds it as a closed end fund.
How can I have bought something that I know is worth nothing?
It is indicative of where this market has gone and is going I reflect...
My gut tells me Bitcoin will be the world's biggest speculative bubble in it's history and certain things are taking place now that may make this year one of the craziest.
Why?
1. There is a finite supply of it so the potential for a huge short squeeze exists. Just think of Tesla or others to see what can happen...
2. Bitcoin trades globally so it is available for the entire world to get involved in the trade and restrictions of stock exchanges in specific countries are not an impediment to trade.
3. Many emerging market currencies have lost value over the years due to inflation so residents are developing more trust in Bitcoin than their own currencies.
4. Many developed countries are printing money like crazy so the inflationary expectations give reason for one to consider alternatives.
5. More and more publicly traded companies are using millions of their cash to buy bitcoin
6. Institutions are setting up closed end funds, indexes, etc so now the general public can use investment vehicles to easily buy bitcoin indirectly. This opens up the floodgates to mass buying of the currency in the hundreds of millions.
7. The media needs something to talk about other than COVID so the higher bitcoin goes and the more ridiculous in price it rises the more popular it will get, the more it will dominate the news and the more novice investors will jump in. Just think FOMO...
8. Lets face it, the reality of this market is that dumb investors who know nothing about valuations are the ones driving it higher. Institutions are just as guilty as they want to appear as smart as the rest. My take is that we are in a momentum driven bubble and that bitcoin may be the final driver of this market before it ultimately explodes. I have learned you can't invest based on how you think but you have to factor in what others are doing. I know it is worth nothing. I do not plan on holding on forever. We are in crazy times, yet again, and this time may be one for the history books...
Bitcoin $200,000? $400,0000?
Watch the media circus do its magic on the global population and governments as usual are so stupid and slow to act they will let things get so out of control till even acting becomes difficult as it now affects everyone...