Bubbles which always arise from actions of speculators end up bursting. Weather classic bull markets like railway mania, Mississippi mania, tech mania or the resent bull market of crypto fools end up being the biggest bear markets at last. Herd is blind. Herd don’t learn. Herd never learns from history.
History of economics is beautiful. In-fact the giant machine of money and economy is beautiful. The way it is designed, the way it makes fortunes and the way it ruins some seems amazing to me. Look at the game of money, currency and power behind world war 1. When I understood the money and currency behind world war 1 it blew my mind. Word war 1 is a perfect poof to statement “our economy is a machine and on each different situation happening now it works same like last time on similar type of situation that has already been happened”. Bitcoin bubble was nothing different, it was same as tulip mania, canal mania, tech bubble, housing bubble, Mississippi bubble etc.
People was so blind in this crypto mania that one of guy in my town I know wanted to buy bitcoin because it went from $400 to $17,000, he so blind like a typical speculator bought 5 physical bitcoins from eBay . He excited to tell me about his investment send me the picture of 5 metal coins which looks like gold with a cheap bitcoin logo on it. At that time, I was so sure that bitcoin is mother of all bubbles. Looking at other speculators comments on my posts where I stated that bitcoin was a bubble now make me feel proud and it’s a matter of time when bitcoin will reach below $1000. Since my parents pushed me into a university (even I think that university is waste of time and resources) I know many many and really many people who lost everything in this mania. Hell, even my professor lost money who on first day of class thought “The theory of “. It seems very funny to me now.
Some bubbles we have in current economy are so big and when burst they will have so devastating effect on whole world that the whole money machine will come to a halt, I always wonder how common man with no financial knowledge will survives.
Will talk about this topic more in next post whenever I will feel to share my views. Thanks for your time.
Note to reader: I do not give advice to you to sell your bitcoins or buy more. Even the btc is a bubble no one can actually predict when it will actually burst ( get below $1000). This is market and it's hard to time. Who know bitcoin will rise more than 20k again to catch up more fishes in net and then it will finally burst. Only time will tell. For me however looking at people around me who speculated in it, it has burst beautifully, like expected.