"Bitcoin is ponzi scheme", "Can't you see it is parabolic and dangerous?", "The bubble will soon burst".
These are only a few of the common phrases that Bitcoin (and crypto in general) skeptics use to add value to their claims that BTCUSD will not last. Especially its parabolic nature. Well what if I tell you that the world's most popular financial asset (EURUSD) in the world's biggest market (Forex) has also been parabolic for decades?
I will not go into much detail on this short (and different than usual) study as the charts are quite self-explanatory. It is a simple illustrative comparison between BTCUSD's 10 year parabola and EURUSD's 50 year parabola. I believe that the similarities on the basic structure are obvious. Naturally EURUSD's is on the 1M chart as its is a pair (with ECU used before 1999 and a basket of major European currencies for calculations) long established in the market while BTCUSD's had to be on the 1W chart as it is a much 'younger' pair but its digital nature allowed it to grow on a much faster pace.
So in conclusion I will ask you this: Do you still think BTCUSD parabolic structure makes it a Ponzi Scheme and a Bubble? Let me know in the comments section!
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The original statement makes no sense. Having a parabolic price does not mean it has to be a Ponzi scheme. Take a look at gold. It went from 20/OZ in 1930 to 800/OZ in 1980. Was that a Ponzi scheme? The price of a family car went from $2000 in 1970 to $30000 today. Are cars a Ponzi scheme? The price of postage stamps went from 5 cents in 1960 for air mail to $1.50 today. For a Ponzi scheme to work it requires more buyers to keep coming in to keep the price rising. If you want an excellent example of a Ponzi scheme take a look at Pension funds. If new workers don't come in and keep paying into the system to support the retirees taking the money out, then the whole system will collapse. All it takes is an event that reduces employment and the system will collapse. A worldwide event that reduces employment will collapse the world's trillion dollar pension system, sending retirees into poverty. I wonder if such an event could ever occur? Hmmmm.
I must admit I admire your consistent hard work. You create lots of wise, very sophisticated charts trying to predict the future. But ... maybe the solution to the enigma is much simpler. How about regression to the mean and then creation of the next mega bubble? Yes, the mean is between 2 and 3K now but I don't call hitting it now. How about spring 2021 when the crisis is evident? Are we tied to SPX or not? Was the 2017 ATH top of 5th macro EW or not? We may be of diffrent opinion but don't you think we are approaching the most interesting time in BTC history?
ralf66.thomas
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what a stupid comparison - Euro was created in 1991 and comparison up to 1972 are simply bullshit ...
Gunslinger2005
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ive no clue how this guy has this many followers
TayFx
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Give me a break.. just a clout chaser
luminaryfi
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lulll "a basket of major European currencies". So you combined the Deutschmark Franc and Libra? That's not how currencies work :P.
LOL.