I enjoy my new hobby of educating the financial "experts" and corporate news "journalists." Today is no different.
Here is some juicy news sent to me by my dad. You Were Warned: Bitcoin Price Crashes, Down More Than A Third In Days.
For the most part this is an informative article. Most of my beef is with the financial "experts."
Let's begin:
"For the week, it was down around a third — its worst performance since April 2013."
This is not surprising in the least nor is it a bad thing for Bitcoin. The drop started on the 18th with the launch of the CME futures which adds the possibility of much greater selling pressure now that institutions can short sell. This is an indication of a maturing market. As liquidity increases, volatility will decrease, making Bitcoin and other cryptocurrencies a more stable and practical currency for everyday purchases.
"A lot of traders [including sky_pal] have been waiting for this large correction." -Charles Hayter, founder and chief executive of industry website Cryptocompare in London.
"...Denmark's central bank governor calling it a 'deadly' gamble."
The governor is lying or doesn't understand what a market is. It is no more gambling than trading Goldman Sachs stock. Also, call me a gambler one more time and you better put up your dukes, bud. Do gamblers profit consistently? Cuz I do.
"'Trading in bitcoin is akin to gambling, so its movements don't follow logical patterns,' said Takashi Hiroki, chief strategist at Monex Securities in Tokyo."
Really? Interesting. Tell that to @haejin.
"Unlike equities and bonds, it is not possible to calculate expected returns on bitcoin, so buying it becomes a gamble rather than an investment." -Takashi Hiroki
Takashi, Takashi smh. It is possible. I do it and profit. The only reason it is easier to do so in equities and bonds is because of a majority having faith in the system. Also, the financial models used for modelling risk and predicting returns are deeply flawed and based on outdated science. Read Mandelbrot, Taleb, Gleick.
Well, that's all for today.
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Sky_pal