[dlive] 5 Data Points That Signal a Cryptocurrency Bubble
Following up from the last video I made about some of the intuitive signs of a potential crypto bubble, we're now going to take a look at some of the more "objective" data points that can signal a cryptocurrency bubble.
DISCLAIMER: This is NOT financial advice. I am just offering my opinions. I am not responsible for any investment decisions that you choose to make.
▲▲▲▲▲ Looking to get started with cryptocurrencies? Check out my crash course here: https://louis-thomas.teachable.com/p/buying-bitcoin-crash-course
My video is at DLive
If we target by bubble as in something that is overvalued, we can say that each cryptocurrency is a bubble.
Because The "value" of cryptos is defined by the number of users. It is similar to a phone. If you're the only one in the world with a phone, it's pretty useless. But if everyone in the world has a phone, it becomes very valuable.
Two more great points you made in your video. Coinbase’s traffic/data and Google’s Search. There is actually something like trending on google page, where you can see most recently searched subjects. When you mentioned it, I thought about Coinbase’s Twitter acc. I’m following Coinbase on Twitter and so far they have 1 mil. followers. If the number of followers goes through the roof, that could be also a great indicator. Anyway, I’m glad you are willing to share with us your secret weapon when it comes to Coinbase data. We are not there yet, I would say the exact opposite is happening right now. Market is completely bleeding. Once again some “breaking news” Bitcoin ETF being delayed.
I agree except that I'd like to point out that SBD spiked because it was introduced at exchanges for the first time. The USD peg only acts as a floor for the price of SBD. It was clearly in overvalued territory after the spike but SBD actually has a stronger value proposition than almost any cryptocurrency out there.
One regret of mine concerning November/December 2017 was not realizing that SBD was a pretty good stablecoin for profit taking prior to the spike. I was apprehensive about buying USDT because of all the FUD but I was loathe to buy fiat because of taxes. Partial profit taking in November just before the introduction SBD on exchanges would've resulted in an incredible windfall. :D
The 5 point about cryptocirrency bubble were a good information. And now 2 points again. You have shared a nice coinbase video. Cryptocurrency is game of inteligent people. Where ups and down are part of the game. But if you have idea about coming days you can get good benifits. As you know the last month of last year sbd was goes high. This shows that cryptocurrency is not stable. But to7 can get benifis on the bases of tou knowlwge
Nice material. Need to think about it.
Thanks for the more great ideas. I am glad that your information anout coins trending us awsm. And its a valuable information.
There is literally no sure way of calling out a point to exit a market but some indicators are necessary to make an informed decision. I guess at the end of the day one has to be willing to trust the technical analysis and realize that the background of such things are as firmly entrenched in mathematics as it is in experience.
I have jotted the points down and will keep them close by. Since I am in for the the long term, I will firmly wait for the next bull market to apply these points. Of course its going to take more discipline than is easy for me but I guess in the end it could be worth it.
I am particularly fascinated with the Mayer multiplier and would be taking a deeper look into its mathematical background. Thanks for sharing man!
The problem is, ultimately the larger investors dictate just how far a market will run and in which direction. At the peak of the bull run, crypto was only 800 billion, for an entire asset class that is easy fodder for big institutions to control the market. Keeping in mind that most of the market was and is made up of retail investors, thus institutions have limited competition.
The data can help in some cases, but ultimately when the powers that be decide their position, the market will follow.