Beware my Cryptofriends! "Winter is coming..."
Dear Steemians and Investors: Yes it is a bull market with a lot of enthusiastic investors and enthusiastic crypto projects.
Nevertheless, always remember that this sector is full of Hype and could go into a big Bear Market (-50-70%) at some point. I am sure it will happen, the only question is when: Tomorrow? Next week? Next year?
Yes, these technologies are amazing but if you think about the overall picture:
- These projects are almost all possible to copy as we can see with the amount of IPOs changing one line of code and raising millions from investors
- These companies do not have revenues yet and therefore it is very hard to assess their "price", their price is linked to the future prospects that we have yet to see
Let's take the exemple of IOTA
It is a crypto that I like, IOTA wants to make and IoT platform for payments and others services between connected devices.
In Europe we have 2 companies with hundred of employees working on the subject (Kerlink and SigFox) with partnership with the biggest Telcos and IT providers. They have been working on it for years and are making money.
The IOTA project is currently valued 50 times both of these 2 experts in the subject... It is a weird situation as IOTA has no revenues, is a new company and has a few employees.
In addition, do you think that SigFox and Kerlink would not be able to make the same kind of infrastructure IOTA is making? It might take time but they could do it in my opinion.
My main message is: Be careful and do not invest more than you can lose because there will be blood at some point
Please don't get me wrong, I LOVE crypto and I earn a lot of money with them. I just do not think these kind of returns we are making will continue for a long time.
Please remember this is my personal opinion and not a financial/investment advice. You need to do your own research to make your own decision. Investing in cryptocurrencies can lead to financial losses.
Interesting article. Hopefully we don't get burnt. Good market for sbd to steem right now it seems.
I agree.. I've been waiting on the mother of all crashes for a while now. Especially now that everybody is so hyped and believes it'll never happen..
I suffered through 2013/2014 and the mindset of those who did is very different from those who are new.
I can only imagine what 2013-2014 must have been...
These newcomers just think it will go up indefinitely which is the sign of a big bubble waiting to explode...
2013/2014 was 10000000000% exactly like it is right now. So much that it's terrifying me. Back in august the chart confused me because I expected 'the crash' but it was confusing since the chart didn't at all resemble the parabolic moves from 2013/2014 yet. However, now it does.
What was hardest about 2013/2014 and which nobody realizes yet, is that Bitcoin and crypto died basically. People think everybody's talking about Bitcoin now and it won't go away, but 3-4 years ago everybody was talking about Bitcoin too and thought the same. People have a short memory.. I don't understand why people can be finding out about Bitcoin now when it was a similar hype 3-4 years ago.
It sucked having to hold my Litecoin for so long. Truthfully, the only reason I didn't sell was because it was so low that selling it wasn't really worth it.... When Litecoin suddenly went up this year, I was finally able to exit it and I'm never ever touching it again. I feel sad for those people who fall for the promise of 'Digital Silver to Bitcoin's Gold' today. It's like we're all going through the same development processeses in crypto.. everybody has the same amazing revelations, disillusions, etc.
People think the crash, if it comes, will be great because they can buy cheap Bitcoin. Sad thing is,. very few actually will. Because when the price does tank 90% it will be for a reason, and buying Bitcoin will seem like the worst idea ever. Just like it was the past three years.. where were all the 'Buy the Dip'-buyers then, hm?
I learned my lesson though. If it does come to it, even if it's illegal to do so or whatever else negative thing happened to Bitcoin, I will throw some money at it and consider it lost money. Just like how it would have been thrown away money if you bought Bitcoin two years ago. I think the current generation of Bitcoin buyers will come to that conclusion too, next bubble/crash in a couple years from now.
So true...
Well, cryptos got sooooo much media attention and general hype this year that FOMO happening all over the place is getting ridiculous. All that takes to crush the market for a while is a couple whales (really fat ones) getting out, and people will panic.
For sure you are correct, but not before some very large moves are made upward I think. Now that we broke the psychological barrier of $333B market cap, it looks like we are going to approach $500B.
I predicted this spike already and am using it to buy into advantageous positions. https://steemit.com/cryptocurrency/@gmikeyg/btc-spiking-buying-eos-in-waves-from-panicked-sellers
I'm planning on retreating to bitUSD when we reach the top and attempting to avoid a tether bloodbath. Wish me luck!
You are right about this and i totally agree with you,, invest on what you could bear to. Lose anything can happen winter is. Near, 😁
Brilliant post buddy and an eye opener for all. I also feel that a correction is due anytime soon.
Its better to book some profits always and have done so :-)
Regards Nainaz
#thealliance
New to crypto and a little impulsive. This is good advise for me to read and heed. Info about IOTA very helpful. ty
I also wanted to address your point regarding valuation of utility coins. At this point, the whole market is hype. Coins that actually do things, like say SC, are generally valued less than the name-recognizable coins like BTC and ETH. Shit, undeployed coins that are only token placeholders are mooning like EOS and ADA. But yeah, Iota. :-p
Its in the air for sure.! Be safe !
I would not say bubble, BTC is here to stay in one form or another for the long run. We are due for an actual week over week correction though..
https://steemit.com/bitcoin/@pawsdog/12-3-2017-the-market-view-and-trading-outlook
@pawsdog
Thank you for your comment.
In my opinion Bitcoin is shit (from use, technological and bubble perspectives).
Blockchain is there to stay, not Bitcoin.
I agree entirely, if I look at it from a purely financial perspective in terms of a business enterprise which is what it is for the miners then the ends don't justify the means. The concept is good, but the business model sucks.
https://steemit.com/bitcoin/@pawsdog/need-mathematical-help-mining-costs
Which is a spin off of this article:
https://steemit.com/bitcoin/@pawsdog/is-bitcoin-really-decentralized-or-are-we-being-led-like-lambs-to-the-slaughter