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Showing posts from May, 2021

Bitcoin getting it wrong and seeing a price correction

 When Bitcoin hit $3,000 some years ago a friend said to me this was a great trade, and I should invest.  I told him, that to me, for now, Bitcoin was a purely speculative play and not an investment.  The same way a Picasso at $100 million was not an investment it was speculation, speculation that someone else would pay more for an asset that has no function -- sure its pretty but so is a poster! Bitcoin made it all the way to $60,000 or thereabout. my friend who had bought 500 coins at $250 in 2016 would be worth $ 90 million if he had sold at the peak -- he didn't sell at the peak he sold at around $10,000. Now Bitcoins are going down based on nothing, except that investors have soured to the instrument -- by the way, it's not only bitcoin that has seen a massive drop in price, it trades around $38,000 today down 37% from its peak in early April 2021, all other cryptos took a hit. My point was always the same if there is no reason for the price of a financial instrument to go