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Tuesday, March 31, 2020

What Will Cause The Bitcoin Bubble To Burst 🔥 #Best Education Page #Online Earning

What Will Cause The Bitcoin Bubble To Burst 🔥


how's it going today guys so today we're
going we'll be talking about what could
possibly cause the Bitcoin bubble to pop
now I know a lot of people are going to
argue with me and say that bitcoin is
not in a bubble and it may or may not be
in my opinion looking at from the
outside because I've said before I am
NOT a Bitcoin investor I'm watching you
from the sidelines because it's very
interesting to me but it's not something
I'm investing in personally I believe
that it is in a bubble okay now just
because it's in a bubble that does not
mean that it's going to pop now or
anytime soon
I believe these are the six reasons that
could cause that bubble to pop and we
could see Bitcoin prices drastically
drop a bubble in financial terms is
essentially when an asset trades at a
price that strongly exceeds the
intrinsic value and at that point it is
speculative so people are investing on a
speculative basis or based on
speculation I think most people
investing in Bitcoin are doing so out of
speculation because they believe that
bitcoin is the currency of the future
it's certainly not the currency of today
you don't see people using it on a
regular basis but people believe it will
be have much more prevalence in the
future we're going to see people using
it to buy things at the store and it's
going to be a huge currency that people
all over the world are going to use as a
functional currency aside from the fiat
currencies now we're not there today
we have a far way to go before we're at
that point with Bitcoin
so in my opinion that is why I believe
it is speculative and due to the fact
that the price has appreciated so
rapidly it appears to be a bubble now
let me just restate this guys just
because it's a bubble that does not mean
it's going to pop now or anytime soon
but if the Bitcoin bubble were to pop it
is my opinion that it would be one of
these six things that would trigger it
and maybe something totally different
but these are the most likely scenarios
in my opinion that would cause that
Bitcoin bubble to burst number one on my
list is massive profit taking from
retail investors so most people who
invest in Bitcoin are retail investors
they're average people like you and me
investing a couple thousand dollars or
whatever the amount is that they're
investing in Bitcoin most retail
investors are novices they're beginners
at this and they make emotional
decisions when it
their investments so they may see the
signs of some kind of pullback and they
may react with their emotions sell all
their bitcoins sell all of their
cryptocurrency and that could result in
an immense amount of bearish pressure on
Bitcoin just due to the emotional
trading typical of retail investors
number two would be another major hack
or cyberattack so I'm sure we are all
familiar with mount guys that was the
largest Bitcoin hack of all time where
millions of dollars of Bitcoin were just
lost they were vanished they were stolen
and mount God's the largest exchange at
that time as far as the transaction
volume goes went completely under so if
we saw that happen again with a major
Bitcoin exchange I believe we would see
the same thing happen where we saw
another Bitcoin crash as a result of
that exchange being hacked and people
losing that Bitcoin altogether so if we
had another scenario like that happened
I think that alone could cause a Bitcoin
crash and pop that Bitcoin bubble number
three would be any kind of government
involvement with Bitcoin okay because
Bitcoin is meant to be the currency of
the people it's meant to be a currency
that has no banking by any government
and it's independent of government
regulation so if we were to see any
governments trying to step in and
regulate this currency or what would be
interesting as well and the Federal
Reserve was talking about this is
implementing their own digital currency
that could possibly undermine Bitcoin I
think that is a serious concern as far
as government stepping in and trying to
regulate this currency or possibly
blocking this currency from use so any
kind of government regulation as far as
Bitcoin goes I think we can all agree
that would be a huge negative for this
currency and that could cause prices to
drastically fall number four is bearish
pressure from Wall Street so something
very interesting is happening and we
talked about this in one of my previous
Bitcoin videos but Bitcoin futures are
now going to be offered through major
Wall Street exchanges so before that
there was no way for people to speculate
on the on the future price of Bitcoin
through a legitimate regulated exchange
the only way to do that would be to go
through an unregulated exchange and
there was too much risk for most people
to do that especially Wall Street
investors now however on December 18th
going forward there will be at least one
major exchange offering Bitcoin futures
where people can speculate on the future
price of Bitcoin now I am certain that
there are people chomping at the bit to
get a short position on Bitcoin due to
the rapid appreciation of that price so
if we see many big Wall Street investors
and institutional investors taking out
short positions on Bitcoin in these
futures contracts then you could again
see these retail investors begin to take
profits off the table or start selling
out of fear because a lot of these Wall
Street investors and big investors are
going to sway the decisions of these
retail investors because they trade
based on emotion in most cases and
they're not usually very confident in
their own decision-making abilities so
those two things combined seeing major
Wall Street institutions taking out
short positions on Bitcoin that could
cause retail investors to start taking
profits and becoming fearful and the
whole sentiment around Bitcoin could
change and we could see a crash just
from that alone number five would be
liquidity issues with major Bitcoin
exchanges and we just saw this happen
with coinbase and Gemini last week when
there were major Bitcoin exchanges those
two exchanges right there actually
crashed and shut down because they could
not handle the transaction volume and
the volume of new people trying to open
up accounts and then finally my last
reason would be if we saw a major
correction with another cryptocurrency
out there now there's a lot of them out
there so I would say this would have to
be a major currency like possibly
litecoin or aetherium one of those major
crypto currencies because there are
hundreds of them out there now I'm not
saying that if some obscure crypto
currency crashed it would affect Bitcoin
prices but we know that these tend to
move together now bitcoin is without a
doubt the bellwether for the crypto
currencies out there but I do believe
that if we saw a major correction with a
coin like light coin or aetherium that
alone could trigger a sell-off with
Bitcoin again due to the fact that most
people investing and these are retail
investors they're gonna make emotional
decisions and when they see prices
falling loss aversion is going to be
triggered and they're gonna want to sell
whatever they have because they don't
want to lose money they want to lock in
these profits so a lot of this has to do
with the fact that most investors and
the currency our retail investors and
they're just prone to making emotional
decisions but anyways guys that is what
I believe to be the six reasons that the
Bitcoin bubble may pop I'm very curious
to hear what you guys think in the
comment section below if you enjoyed
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taking the time to watch this video
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