ZH (July, 2017): New Accounts Highest Since DotCom Bubble
2011 deja vu: fake reflation, Fed rolloff, fiscal cliff, fool's gold
Been there, done that...
Based upon the parabolic trajectory of Bitcoin, the chance of a major crash is now 80%:
It's called too far, too fast. The vast majority of people buying this thing have no clue why they're buying it other than sheer speculation - as it was with Dotcom stocks and the housing bubble. Most of the people buying Crypto were too young to learn from the prior two bubbles, hence "this time it's different", the same refrain we heard the last two times.
When Bitcoin crashes it will domino crash the rest of the cryptocurrencies, which are largely denominated in Bitcoin. ~1200 ponzi schemes built on top of an even bigger ponzi scheme.
What makes BitCasino somewhat "unique" is the fact liquidity is purposely reduced the more it increases in value. This is the "hashrate difficulty" setting which automatically increases, requiring more and more computing power to keep the currency functioning. Whoever thought of that was a fucking genius. Putting futures on this thing is the dumbest thing the futures exchanges have ever considered. Might as well put futures on horse races. Imagine putting 20x leverage on a currency that can take hours or even days to clear. It's a disaster wanting to happen, rife for manipulation. So far there's been no good way to short this thing. Wait until large scale speculators can short this thing until the miners disappear and there's no way out.
Suffice to say when, not if, this thing implodes it will be spectacular to say the least...
In the meantime it's merely a visual indication of how much control Central Banks have lost over their monetary acid trip:
$10,000 should break any time now...
Semiconductor stocks are starting to leave the mining party early...
Can Bitcoin crash the global financial system? In the same way that Lehman pricked an eight year housing bubble, yes...
