Warning: Bitcoin, is in the eye of the storm, this cryptocurrency is "one of the biggest bubbles" in history...
As a Consultant and Financial Analyst, I believe that Bitcoin directly to, among other criptomonedas are one of the largest bubbles in history, according to what we are seeing continuously, with referecnia to the acontesimientos of the last times, there are serious problems of economic and financial power in all the planet and other new major inconveniences caused and not end up well.
This whole issue of bitcoin, with other cryptocurrencies, is one of the biggest bubbles in history, as I said before, we had already discussed it with colleagues at Capital Trust at the time. This bubble will eventually burst and it will get very ugly, I warn you, it will be very hard.
In particular, I think that the bubble of digital assets, are comparable, with the bubble of punto.com.
What is the bubble of punto.com?, we refer to it as the period between 1997 and 2000. During this period there was a strong and enormous growth in the values of the assets of companies linked to the Internet. In this way, it caused a strong economic bubble that led to the bankruptcy of a large number of companies.
I remember in this period from 1998 to September 2001, I belonged to the group of Martin Progeressive, New York City, where we worked directly with investments of the Stock Market and the NASDAQ Composite Market.
In order to take a dimension of the size of the crisis, let's see the following, the NASDAQ index, came to quote in March of the year 2000, about 5000 points, then, not so long, to then collapse, in such a way that it came to quote at 3500 points, and finally, by October 2002 its value was around 1300 points, standing at values similar to those of December 1996.
When the bubble burst punto.com I must say it was coming, long time ago, but no one was willing to bet when such an event would happen, we always thought, it will be in a week? maybe in a month? really when? until I get that day finally and did the inevitable, all the actions that were worth like a billion dollars, and in contrast, if we take into account the inflation, the majority of those actions do not valian absolutely nothing, that is what happens when you give values irrational impulses immoderate that are in the game, it's an absurd game between the emotional and the irrational.
However, I do not rule out the possibility that the price of bitcoin will grow due to excess liquidity in the financial square. There's too much money out there that can be channeled into this market. It has already become the casino, ever larger, colossal and unstoppable."
As an Advisor and Financial Analyst, I recommend investing money in cyclical securities and always diversifying portfolios, if possible, with a long-term view of at least 16 to 18 months, obvious reasons are everywhere. The cyclical trade is the long-term game, because it is estimated, that things will continue to improve, always in the long term", also another option and is what I like the most, are the support of investment in hard assets, such as gold and silver, although it is a very complex market even, because as few know, the markets are manipulated all the time, for that reason I always say, that investments are a Russian roulette or a bet, because it is very difficult to pre-tell short-term events, against reason and the emotional.
This bubble is in everything and in all the assets of the planet, we turned many into geniuses and gurus in recent years, while the bubble of the late 90s, was much narrower and the enthusiasm in the assets of those times responded, in part, to the great potential of the effects of the internet.
Also another factor that is affecting this problem, is the Federal Reserve, which is inflating the bubble indirectly, with the so-called stimulus, the Fed in this way, was inflating the big bubble, as we warned some time ago, just a few months ago. Expansionary policies, coupled with high debt and fiscal deficits and negative rates, threaten the long-term health of the dollar... what are we seeing today? a dollar in a free fall. Definitely, the problem was clearly identified, it is none other than Jerome Powell and the rest of the world's central bankers.
It happens that there is a lack of confidence brutal and this is getting tragic, but note, as they come down all the bags, the collapse is large, we add now, the situation of risk in the economy of China, this walking on the razor's edge, flooding, problems of a deficit of energy, the collapse of the construction companies of China and their policies unethical applied with reference to the schema Ponci, then, we obtain, bankruptcies and falling free from many companies such as Evergrande, and some other more, now, again, for breach of payment obligations, then we see in a short time what is coming, it is nothing promising.
Now, I have no doubt, that we are in a pathological mania, addressing all the assets of the planet and the risks of concentrating investment in a short-term approach, this leads to a disastrous crisis, all this has to do, with the fact that many investors, live in the present, which is an incorrect stance and a prominent long-term disaster.
Investors should look to the near future when deciding their trades and thus avoid the creation of these bubbles. Every event in the world affects something in particular. This is the reason and against part, to imagine the world with a long-term vision, it is necessary and essential, we are talking about a period of up to 18 months, it is reasonable, no more, so that you can identify or speculate, the values of assets in the future, with a somewhat more accurate reference, in reference to the values of assets today.
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