Cryptocurrency Is Bitcoin in a bubble about to burst, or will it remain rising?

[Weasel]

So everyone has seen the huge increase in value Bitcoin has had, especially over the last few weeks. Currently there's a huge discussion going on. Is Bitcoin in a bubble, which will burst and cause the value to drop thousands, or will it remain stable or rise even further?

Those in Bitcoin (or those wanting to jump in), are divided mainly in two groups. Those holding back and waiting for it to fail, and those jumping in now as it's increase in value is gigantic (which might also account for the increase).

I'm not really that in to crypto valutas, but I'm really curious about the opinions on this matter in our community.

 

[Ecko]

We'll find out in about 8 days is my guess

 

[Platinum]

I truly do think it’s going to crash and burn, it’s just a matter of when! The pure fact that it’s crypto currency honestly makes me believe that something, somehow (whatever it may be) will ruin Bitcoin and the people who invested in it.

 

[Mikee]

It may or may not "crash" per say, but it will in my opinion devalue. As it gains more hype, more crypto's will be invented/created which will eventually create a wider spread since people will diversify and realize that theres more crypto's than btc. As a result btc will fall.

 

[JMS]

It may or may not "crash" per say, but it will in my opinion devalue. As it gains more hype, more crypto's will be invented/created which will eventually create a wider spread since people will diversify and realize that theres more crypto's than btc. As a result btc will fall.

They're so many crypto-currencies now - one of which show any competition to BTC so I don't get this

 

[Sledmore]

I think it has a long way to go, but recent events have shown us that there are better options out there. Had to pay $20 as a fee to make a transaction the other day.

Each time it drops, it appears to just stabilise and rebuild, I'm in a lucky position, as I got in at £500 each, so for me.. a crash would be below £500, if it starts to dip massively, I'll catch it.

But as said above, we'll see on December 18th, but that is already having an early impact, and we've a long way to go.

 

[Weasel]

I think it has a long way to go, but recent events have shown us that there are better options out there. Had to pay $20 as a fee to make a transaction the other day.

Each time it drops, it appears to just stabilise and rebuild, I'm in a lucky position, as I got in at £500 each, so for me.. a crash would be below £500, if it starts to dip massively, I'll catch it.

But as said above, we'll see on December 18th, but that is already having an early impact, and we've a long way to go.

I might have missed something, what will happen on December 18th?

 

[Sledmore]

I might have missed something, what will happen on December 18th?

Bitcoin futures. Launched today, not 100% certain on how it all works, as CME says its launching 18th of December.

It could only go up from here, or fail, but looks more up to me.

 

[Ecko]

Excellent article I read on Bloomberg earlier

1. How does bitcoin normally trade?
On a network of unregulated exchanges, which have their own prices for the digital currency -- and a long history of problems that range from service crashes to hacks and thefts. Buying and holding bitcoin is essentially a bet that its value will rise further. Not everybody who wants to get involved in this market thinks so.


2. What does it mean to trade bitcoin futures?
Futures contracts -- which derive their value from some underlying thing like corn, wheat, or in this case, a digital currency -- oblige a buyer to pay for something at an agreed-upon price at a certain date in the future. They can be used to make a bet on which way the market for a product is going to move. They can also be used to short a market, or bet that prices will fall.


3. Who’s going to be offering futures contracts?
Three of the largest U.S. exchange companies, all overseen by the Commodity Futures Trading Commission, are debuting bitcoin futures contracts. Cboe is getting its contract to market first. CME will begin offering a competing product on Dec. 18. Nasdaq Inc. is

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to introduce bitcoin futures next year. The other major U.S. exchange player, Intercontinental Exchange Inc., has not yet announced any plans to do so. “We may be stupid for not being first on that,” Jeff Sprecher, CEO of ICE, said

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this month.


4. Why are they doing it?
Exchanges want to offer what investors want to trade, and a lot more people want to trade in the bitcoin market than even a year ago. Coinbase, a large bitcoin exchange, was overwhelmed by

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as bitcoin soared toward $10,000 in late November. CME, which

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hadn’t made a decision on how to address cryptocurrencies, ultimately decided the allure was too much to resist. For traders, bitcoin offers an entirely new landscape to navigate. One hallmark of bitcoin trading is unpredictable price swings, a stark contrast to the eerie calm that’s settled over other financial markets, including U.S. equities.

5. What are the risks?
Not everyone thinks derivatives based on bitcoin are ready for prime time. One worry is the volatility that so far has been a key feature of the digital currency market. Just three days before Cboe’s product was slated to be introduced, bitcoin had one of its wildest sessions ever: On Coinbase’s GDAX exchange, prices zoomed up to almost $20,000 from $16,000 in only about 90 minutes, before crashing back down.

6. So are bitcoin futures a bad idea?
Some big traders think futures may be premature. The Futures Industry Association -- a group of major banks, brokers and traders --

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the contracts were rushed without enough consideration of the risks. In an open letter to the exchanges, the group questioned whether they would be able to adequately police market manipulation in bitcoin. The group said the exchanges should have sought more industry feedback on

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, trading limits and stress tests for the system before beginning trading. Cboe and CME are requiring traders to set aside an unusually large pile of cash to serve as collateral to back purchases.

7. What is bitcoin, anyway?
This simple question draws a surprising amount of debate in the investing world. While bitcoin advocates call it a currency, the CFTC views it as a commodity. Skeptics view it as a commodity without any intrinsic value, with demand driven by novelty and the scarcity imposed by bitcoin’s software protocols, which will cap its production. Some analysts think it will trade more like a volatile stock, while others expect it to develop into a new asset class entirely. These arguments are being debated among

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and hobbyists alike.

8. Is anyone betting against it?
Those who believe bitcoin is overheated have a chance to short the market with the introduction of bitcoin futures. Some hedge funds have been

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to bet against the cryptocurrency.

 

[Ghost]

One day Bitcoin will eventually hit an all time low.

 

[Benden]

One day Bitcoin will eventually hit an all time low.

Wouldn't that be negative $0

 

[Sab]

BTC wont crash, trust me. In order to buy most alt coins you need BTC. BTC is the leader of all coins, that wont change, trust me. Now people are using it as payments more around for shopping, it will do nothing but grow.

 

[EvaShinQ]

This has been an unstoppable event I have to say. It keeps getting higher every time. The problem is that the higher it goes, the faster it falls with no clues to expect it whatsoever.This is one of the reasons I don't own any bitcoin and I just trade it. To me, it seems more logical to trade it for a few minutes a day with great entries and signals from

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. All you have to do after is withdraw in dollars which are easier to use and no fees are required. Also, the stress of owning bitcoin is not there when you just scalp it.

 

[Sledmore]

It's interesting looking back at this thread and how much has changed in the crypto space, e.g. above in 2017 the comment about having to have BTC to buy other currencies; that's a thing of the past now. Most exchanges let you use Fiat currency to purchase & it converts it there and then.

This has been an unstoppable event I have to say. It keeps getting higher every time. The problem is that the higher it goes, the faster it falls with no clues to expect it whatsoever.

Supply & demand, set yourself a Stop-Loss order. Only put in what you can afford to lose, and remember to cover yourself by removing your initial investment when you make profit. Once you've got back what you've put in, it's calm from that point onwards - no problem there.

The last ~20 days of BTC have been rocky, but this correction was very much needed for the next run.

 

[Bakervic]

I think it's not as reliable as people love to present it. I don't mind trading crypto, but I'm not a huge fan of holding it for a long term investment. The common sense is to still trade on a

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Forex and even crypto coins. It's a better idea to avoid big risks. By big risks I mean owning something that costs 50k right now and could easily plummet back to 10k in a few days. You can do wonders with a 50k trading account just by having a stable 5% gain on a monthly basis! Have a look at people who bought on the top at 63k thinking the bull run will never finish.

 

[forgxtea]

You won't believe it, but in 2022, this bubble burst, which everyone has talked about for a long time. And this happened since, in many countries, cryptocurrency was banned. Because of this, people began to sell their bitcoins in a panic, consequently dropping prices sharply. It's good that I could sell everything on time and cash out. Now I think it's best to invest money in trading, especially since I could even find this site --

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, where there are informative sources about trading and how to invest your money in the best broker services.