Unfortunately, I agree with you. We are in a huge bubble and it will collapse at some point. BTC won't disappear, of course, but it will fall to 3k or lower, erasing the massive gains of the past few months. In doing so, it will destroy a lot of the small cryptos and panic takes over.
Smart investors keep saying Tulips. Indeed, that's the classic one everyone learns in school. But this reminds me more of 1929. Bubbles are all the same, but it's the attitudes of the common people that remind me of 1929. At the time everyone thought they were going to get rich, they were investing their life savings in the market even tho they really had no idea what they were doing. Anyone who claimed that bad days were coming was told they were a fool, that this market is new and doesn't follow the rules of the old, that this time it's different. There was incredible anger against anyone who wasn't 100% enthusiastic about the market.
Just like now.
I could be wrong. I would be happy if I am wrong. I am invested in BTC and don't want to see it crash. I mean even if I can get out on top and profit, I still don't want to see the past few months disappear. But ultimately that will be healthier for the market, as it shakes away all this FOMO, hype, and greed
Human nature and market patterns don't change. We should be prepared for the worst.
It's possible that bitcoin could go for a correction and resume quickly thereafter...
Unlike the crash of 1929, Bitcoin is still relatively small-stuff compared to the global economy or even American economy...
It would be as if the milk industry collapsed... The rest of society would go in virtually unscathed, only milk producers and traders would be devastated.
As such, I think we will see a big transfer of wealth.
Many people who have bought bitcoin for 8k+ will undoubtedly lose most of their investment, and that's what the market does... It rinses people who are ignorant...
People who saw the price of bitcoin at 8k and decided to buy thinking it would go up to the moon are suckers and therefore deserve to have their money taken away from them by vultures...
If the vultures in question happen to come from Bitfinex this time then fine!
This won't be the first or the last time that the common denominator gets his money taken from him by a smooth operators
Therefore, let the correction come, let all these people who rushed into bitcoin without knowing a thing about it learn an expensive lesson, let those who have gamed the system and played their cards right make an absolute fortune, and let's let the world continue to go round.
Hopefully this will serve as a lesson to future adopters of cryptocurrency not to get into it because they think they can make quick gains! But to get into it because it's the future of money and has virtually endless potential and applications!
My 2c on this recent fiasco, does anybody disagree?