The Collapse of Bitconnect & Tether is Coming
Tether was recently hacked for $30m and community support is dying. Bitconnect has been showing signs recently that its top promoters are jumping ship. Trevon James has started selling so he can buy a house and has announced "changes" to his YouTube channel. Sunny Decree has chosen to quit Bitconnect to save his reputation. Craig Grant continues to cash out to his Exodus wallet. CryptoNick is starting to create other revenue streams, namely the course he wants to sell. There are more too, but these are some of the names most of you will be familiar with.
As more people head to the exits, Bitconnect will lose its correlation with Bitcoin. Barring a substantial runup from Bitcoin, Bitconnect will likely continue to lose value. Eventually, people will begin to realize it was nothing but a farce from the start and people will stop reinvesting their "profits." This will automatically lead to the collapse of Bitconnect. Exactly when this will happen is a mystery, but the dominos are starting to come together.
Meanwhile, the Tether hack is leading to lost faith in both Bitfinex and Tether itself. Bitfinex recently went on record attempting to do PR damage control (since Bitfinex'd has been the equivalent of a complete nightmare for them), but this hack was perfectly timed to essentially destroy any control they were able to grasp. Even if Tether is legitimate, I suspect eventually it will be shutdown as the government determines that fiat-backed cryptocurrencies should only be issued by the state, not some third party across the world. The larger Tether becomes, the more of a target it becomes.
Lastly, my verdict is in - Bitcoin is a bubble. I'll be writing an article and recording a video discussing this in more detail at some point, but figure you all should know. Fortunately, there is still money to be had in bubbles and it all comes down to behavioral finance. And don't worry, we'll still focus on trying to make money in this crazy market. But be aware that with anything supported by emotions, you should be ready at any point for the cloth to be pulled from the table.
As usual, I am happy to hear your thoughts. I know this is one of my more controversial videos (and I have quite a few). Disagree with me? Let me have a piece of your mind. Thanks for watching.
https://steemit.com/freedom/@craig-grant/do-not-invest-in-bitconnect-it-is-a-ponzi-scam-response
Tether is a massively pre-mined centralized shitcoin.
Bitcoin is king, everyone else is fighting over scraps on the floor.
It's even worse then that! The money backing it isn't there! It's gonna blow up
The problem I have is that tho Bitcoin is the king, Tether is that lender who keeps harassing the king and threatening to bring him down with him.
Only problem is bitcoin will take a hit when short term when this breaks down.
Have a look at my reply in the other post.
https://steemit.com/cryptocurrency/@cryptovestor/altcoin-opportunity-while-all-eyes-are-on-bitcoin#@transisto/re-cryptovestor-re-cryptovestor-altcoin-opportunity-while-all-eyes-are-on-bitcoin-20171119t072238708z
I read it (and upvoted it). Not comfortable with responding quite yet on topic of Ethereum vs. EOS, so that's reason for my silence. I'm also seriously concerned about Steem for reasons you've already addressed in some of your posts thus far. I'm hoping they can be worked out in long-term. Platform could seriously use machine learning to weed out the nonsense since so many people are focused on abusing the system for monetary gain. Even my own posts shouldn't receive the level of compensation that they do (except the ones with fully fleshed out articles) given the number of views I get right now (on Steem specifically). I suspect as I grow on Twitter and other platforms, I will be able to provide the value I currently receive, but it is worth noting regardless.
DAMN bro! I follow you on YouTube and love your comprehensive insight on investing [being somewhat new to investing], but this shows signs of maybe some subconscious Gov conditioning kicking in. Your posts SHOULD have the level of compensation they do. Is it "abuse" or is it leveraging the system to it's full potential? I don't think of it as abuse, I see it as mining, and they are ways smarter at it than me.
How can it be abused when no one is getting screwed as each upvote is like mining? Am I not understanding fully how steem works?
I'm basing my answer on the compensation I've received writing on other platforms such as Seeking Alpha. This is far too much based on views. Should be getting at least 3k or so views on Steemit only before this particular article / video would be worth this much, even if you factor out the curation rewards.
Thank you for warning people about Tether and BitConnect.
The crypto community needs more warnings like these.
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Finally and if OneCon could implode too that would be nice
https://steemit.com/bitcoin/@xsid/bitcoin-feeling-bubbly
interesting article very good way to explain thank you
Thanks for reading / watching.
well said. but in certain way bitcoin is just like bitconnect, somehow relying on new comers to pump this bubble continuously.
Bitcoin remains close to record highs on Wednesday after rising above $ 8,000 for the first time in nine years on Monday, fueling worries about an asset bubble.
On the Bitfinex stock exchange based in the United States, Bitcoin was at $ 8,270.90 at 08:05 AM ET (01:05 PM GMT).
On Tuesday, he touched $ 8,310.20, a high since his inception nine years ago, before losing more than $ 400 after a $ 31 million flight of cryptocurrency revived market anxiety.
Bitcoin, which is known for its strong fluctuations, tends to bounce back quickly.
Bitcoin has grown more than 700% this year, with three separate corrections of more than 25%, all of which have given way to subsequent rallies. At current prices, bitcoin has a total market capitalization of approximately $ 137 billion.