Trying to be simple about hard things.
“High profits” in 2017 attracted into the crypto market huge amount of non-professional investors, most of them even do not understand basic principles of what crypto is, what are the difference in technology and what are potential risks. The whole lot of famous economists predicted collapse of the Crypto market, among them: Warren Buffett literally said: “I can say almost with certainty that cryptocurrencies will come to a bad end.” Another notorious economist Paul Krugman (nobel prize winner in Economy) said that it is a bubble and no one understands it. On the other hand we have Bill Gates, who was on the other side of the “power” stating that no one can stop cryptocurrencies now. But all controversial info we already heard long ago, and last year global market capitalisation of cryptocurrencies increased for 34 times!
However, in the begging of 2018 we could see what real dangers can affect cryptocurrency market. Let us talk about them.
“Danger” number 1 (Bloody market is not stable at all).
On the cryptocurrency market I am a pretty new person (even I have a Masters degree in economy), however it did not take me long time to realise that this market is GIGA volatile and to predict what is going to happen almost impossible. Be honest guys NO ONE predicted this recent collapse of the market to the extent it has happened.
Fact: Market reacts on everything from rumours, till technical faults. Furthermore, market is relatively small any big investor or a group of significant members are able to affect market to descent extent.
“Danger” number 2 (it is decentralised).
Yes, exactly, you have heard me correct. I can not imagine that any government or financial institution will allow almost half a TRILLION dollars market to be free of regulations, fees and control, this is UTOPIA. Every time when we buy something with crypto we transfer funds and BIG FELLOWS do not get their fees for transactions. To understand what money banks earn on transactions we can look at the following info (In 2013 only 20 banks earned almost 32 billion on transactions). Do you believe they will allow these money away with no WAR =), I doubt.
Fact: All governments today trying to control cryptomarket, in most cases in ugly way lobbying someone's interest.
Conclusion: I personally do not know if crypto market is going to be destroyed or it will somehow evolve to something new, where we general public, will be free of money fees and currency exchange. What I do know for sure in the time of Chaos be calm and patient and you will do less mistakes than those who are in a hurry. =)
Have fun people, hopefully this masterpiece was interesting to read =)!
Dear valerybelan,
Firstly, thx for your post my friend.
Secondly, you are absolutely right that there are way too much people in it who do not know anything bout it (or too little) - probably that is one of the reasons why it is working quite good for many others.
And Warren Buffett said, that cryptos will come to a bad end, but he admitted that he does not know a lot about it, and people who have nearly no knowledge about this game should not talk about it (just like in every subject; better be quiet if you do not know what it is). Warren is boss in stocks but definitely not in crypto.
Bill Gates has bit more clue and you might check out tnt (longterm coin).
Thirdly, you are right, the market is volatile af., but it is not impossible to predict. I predicted quite often the right things. Although I was never a 100% sure, but how should I. No one knows what is happening in the future.
Um,... and I really do not want to show off or anything like that, but til now I was quite good concerning 'predictions' of this correction.
Nevertheless, there are enough actions you cannot predict but if you know market cycles and stuff (ta in general) then it is not that difficult to say where it is going (as long as the whole world does not prohibit coins...).
To sum it up; I like your post and you are very right with most of it but imo you can "easily" increase your chances of winning if you do a lot of research. Regulations and stuff will be interesting - right now it is quite enjoyable (USA has the most strict ones, I guess?).
Yours truly,
Gandalf The White
PS: In a bullish market every person is a boss trader. The good ones will be revealed when the bearish crypto winter starts; I am excited for that. Hodlers will suffer and so on...
PPS: I am not a finance advisor but quite experienced with stocks and crypto - posting my opinion bout it and my trading plan.
Thirdly, you are right, the market is volatile af., but it is not impossible to predict. I predicted quite often the right things. Although I was never a 100% sure, but how should I. No one knows what is happening in the future. - I understand there are basics and postulates for trades, however they are so much diffirent from the stock markets, what make lots of analysis not very reliable.
It would be cool to have some links which you think can be useful to read.
Of course they are different. Crypto is way faster and younger (volatility...). But there are ways to adjust your trading tools (indicators...) for the crypto market (eg. Ichimoku Cloud).
You mean posts from me or in general?
Nice👍🏻
Good thoughts my friend. Im sure something big will happen very soon!
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