!!! Warning !!! Hazardous Bitcoin
For my first real article I wanted to show you the dangerousness of Bitcoin.
1st - the current bubble on the bitcoin.
The best way to identify a bubble is to see the reaction of old bubbles. We can see on the internet a large number of articles containing this type of analogy.
Source: Informa Financial Information
On this chart, taking the major crisis since 1990, we see clearly that the bitcoin market has exceeded all crisis standards.
This isn't the most shocking. Let's talk about the usefulness.
2nd - why use bitcoin ?
Indeed, it is an asset affiliated with no economic reality, and it is very easy to realize, by taking examples such as currencies or commodities. These are all related to the economy of their location or industry:
- CHF is linked to the Swiss economy
- USD is linked to the US economy
- Gold to supply and demand coming mainly from use (luxury, jewelry, electronic...)
- And the bitcoin? linked entirely to speculative positions!
You understand, we have an asset that people use to speculate and not for another goal. I don't say that all cryptos currencies are pure speculation, I said that currently bitcoin is a risky asset and useless for the economy. The STEEM seems much more pragmatic. Indeed this one is directly related to steemit, so we have a linked with economic reality. Nevertheless, bitcoin remains an asset like any other, and I will show you in my next article how to measure the risk of your BTC portfolio from a widely used statistical tool in trading rooms the Value at Risk (VaR).
Thank you for your attention, I await your reactions