BitcoinNews Analysis

Bitcoin Phobia – What’s Holding You Back?

By November 29, 2017 No Comments
Is it fear, complexity, or shame? Get over it and start making money.

Fear? Complexity? Shame? From dark web to revolutionary asset class, bitcoin has completely transformed itself, so it's time for you to do the same. Get over your bitcoin phobia and join the revolution.

Disclaimer:  The information in this blog represents the opinions of its author and is for educational purposes only.  It is not intended as investment advice.  Cryptocurrency markets are extremely risky so you should only invest money you are willing to lose.

Bubbles Are Scary

We totally get it.  The word "bubble" terrifies you.  But you know who's really scared?  Banks, brokers, and governments.

They're trying to scare you with the word "bubble".  in the past year more than 100 hedge funds have been created exclusively for the purpose of trading cryptocurrencies.  By some estimates there are tens of billions of dollars worth of institutional money just waiting to dive in as soon as they get the green light from regulators.

Who Needs The Stock Market?

Where do you imagine all that money is coming from?  The obvious answer is government currencies and traditional investments. According to Nuveen Asset Management's chief equity strategist Bob Doll, there's a saying of late: "...with bitcoin, who needs the stock market?".

Can The Dollar Compete With Bitcoin?

And some people are completely turning the tables, saying that pretty soon the dollar won't be able to compete with bitcoin.

That's exactly why banks, brokers, and governments can't shut up - "bla bla bla ... bubble .... bla bla bla .... bubble" - as they watch their money disappear.

Bubbles don't have to be scary - if what they mean by "bubble" is a market driven by investor sentiment rather than fundamentals; powerful upward momentum fueled by optimism, hope, and faith in a completely new monetary system, then that's not scary at all.  As a matter of fact, it's a very good thing.

Bubbles don't have to be scary - if what they mean by "bubble" is a market driven by investor sentiment rather than fundamentals; powerful upward momentum fueled by optimism, hope, and faith in a revolutionary new monetary system, then that's not scary at all. As a matter of fact, it's a very good thing.

By "Bubble", You Mean ..... 

But have you ever stopped to think about what they mean by "bubble"?

Clearly they're trying to evoke images of the Dutch tulip bulb mania of 1619-22 or the dot-com bubble of the late 1990s, both of which didn't end well.  But these are spurious and misleading analogies.  

The comparison falls flat because tulip bulbs aren't a disruptive technology, dot-com stocks aren't a revolutionary new asset class, and, most importantly, the rich people who paid for their mansions with the proceeds from those bubbles weren't bailed out with taxpayer money.  

Emotionally Driven

The real reason that the analogy doesn't withstand scrutiny is a mismatch in the underlying investor psychology driving the bubble.

Neuroscientific studies have shown that we humans delude ourselves into believing our actions are rational.  The truth is that we act emotionally, and retrospectively justify our actions with reason.

Most bubbles are driven by the emotion of pure greed - people buy in the hope of selling to the next sucker at a higher price.

But this bubble is very different.

Bitcoin was born out of the rubble of the 2008 financial crisis.  The people driving this bubble are the same average investors and homeowners who were decimated in that crisis and watched in horror as their tax dollars were used to bail out the same corrupt, greedy bankers who caused the crisis in the first place.

Bitcoin was born out of the rubble of the 2008 financial crisis. The people driving this bubble are the same average investors and homeowners who were decimated in that crisis and watched in horror as their tax dollars were used to bail out the same corrupt, greedy bankers who caused the crisis in the first place.

Optimism and Hope

Bitcoin has, almost overnight, emerged from the shadows of the dark web to become a beacon of optimism and hope that a revolutionary new math-based technology can replace an antiquated obsolete one in which a few corrupt individuals control the entire world economy.

Bubble From The Rubble

Bitcoin was born out of the rubble of the 2008 financial crisis.  The people driving this bubble are the same average investors and homeowners who were decimated in that crisis and watched in horror as their tax dollars were used to bail out the same corrupt, greedy bankers who caused the crisis in the first place.

Not Scary At All

If what they mean by "bubble" is a market driven by investor sentiment rather than fundamentals; powerful upward momentum fueled by optimism, hope, and faith in a revolutionary new monetary system, then that's not scary at all.  As a matter of fact, it's a very good thing.

the neuroscience of bitcoin is written in the waves: investor psychology, which dominates all other fundamentals, can be demonstrated in the chart patterns that we have been analyzing on this blog.  mathematical formulas based on human behavior allow us to identify highly predictable and extremely powerful fibonacci wave patterns with almost pinball-like bounce points in specific, well-defined target zones. throughout the long term uptrend that started on sept. 15th at $2975, the mathematically predictable series of advancing waves carried powerful momentum while the fibonacci retracement zones provided almost pinball-like bounces after each retracement. chart: coinigy.com, technical analysis: digitalassetuniversity.com

the neuroscience of bitcoin is written in the waves: investor psychology, which dominates all other fundamentals, can be demonstrated with mathematical formulas based on human behavior that allow us to identify highly predictable and extremely powerful fibonacci wave patterns with almost pinball-like bounce points in specific, well-defined target zones. throughout the long term uptrend that started on sept. 15th at $2975, the mathematically predictable series of advancing waves carried powerful momentum while the fibonacci retracement zones provided pinball-like bounces after each pullback. chart: coinigy.com, technical analysis: digitalassetuniversity.com

Economic Miracle

Bitcoin hopes and dreams have finally emerged from the shadows of the dark web, and what an economic historian at The London School of Economics calls "...nothing short of an economic miracle" and The New York Times  calls "an investment boom like no other" is now in full swing.

It's being fueled not by investment banks or institutions, not by governments or central banks, but by those same people who got screwed in 2008.  This is evidenced by the fact that Coinbase, the most user-friendly on-ramp to cryptocurrencies, added 100,000 new wallets in a single day over the Thanksgiving weekend rally to $10,000.

Wallet By Wallet

Average investors aren't waiting for a green light from the corrupt bankers they bailed out 10 years ago.  Instead, wallet by wallet, they are building the new global financial system themselves.  Isn't it time for you to get over your bitcoin phobia and join the revolution?

Even a month ago talk of 10k bitcoin was an eye-roller, now it's a fait accompli that bitcoin will be adding another digit before Christmas.  Our analysis shows how the rising momentum from the $7500 level foretold the explosive move to the 10k level.  Chart: coinigy.com, technical analysis: digitalassetuniversity.com.

Our analysis shows how the rising momentum from the $7500 level foretold the explosive move to the 10k level. Chart: coinigy.com, technical analysis: digitalassetuniversity.com.

GET PAID TO LEARN CRYPTOCURRENCY INVESTING!

By clicking Subscribe you agree to the following: Privacy Policy, and Terms & Conditions.