Bitcoin bubble

There are a lot of opportunities in trading stocks where you can make huge amount of profits from 10% to 1000x with less risk. However people seems to be more attracted by cryptocurrency than stocks even though the required efforts to make a good trade are pretty much identical for both.

It turns out that it takes more time to open a stock trader account basically due to strict regulations. Also it is an old and well established profession , so you will have to follow the classic process in order to become successful trader.

The fact that you can start trading cryptocurrency in less than 10 min in a 24/7 open market has attracted a massive number of curious people. There is another factor, the single technology behind crypto which is the Blockchain has made it more easy for investors to build a very large diversified portfolio. Whether it is medical, aviation or financial it is all identical as at the end of the day it is the Blockchain applied to a certain industry.

Even if it is a revolutionary technology and easy to understand, the investor will end up taking a decision to buy or sell. So unconsciously he is dragged to the trading profession and he is prone to make all sort of mistakes. The high volatility in the cryptocurrency is explained by the unmeasured reactions of the investors.

Just because few years ago bitcoin price has moved from 0.02 cents to 20 thousand dollars does not imply that the Blockchain technology is sustainable or has reached any maturity.

Every time a new person starts trading cryptocurrency, the bubble becomes bigger . Until one day, when a very bad and persistent news affecting the market triggers a massive price drop. At that moment Bitcoin mining becomes worthless and the network is no longer operational to process transactions. All other Altcoins will follow due to their price correlation with Bitcoin.

With a market size reaching 1 trillion usd ,not only investors will lose their money when the bubble pops , but the world economy will be severely affected.