PSA: The future of Bitcoin and cryptocurrencies

$BTC bitcoin hitting $4300. Holy cow. I was a bitcoin bull since it was at $100 and I still own some. But I do expect a bitcoin crash back below $1000 at some point in the next few months or year or so. Buyers/traders/speculators/miners of bitcoin at $4300 beware.

I think it’s later in the Bitcoin/Crytopcurrency Bubble than today’s bulls think. Bitcoins and cryptocurrencies of today will probably be a lot like the dot com bubble and subsequent dot com crash. Bitcoin and other cryptocurrencies will probably crash 90% plus when they do crash, much like Amazon and Priceline from the years 2000-2002. Most variations of Bitcoin and most cryptocurrencies of today will go completely to $0 before the crash is over — and that will be the time to invest in surviving cryptocurrencies, which will probably include Bitcoin.

After I posted the above comment about Bitcoin likely being headed to $1000 on my Facebook page, one of the perma-bear hedge fund managers I talk about here on Trading With Cody all the time direct message’d me on Facebook because HE JUST STARTED BUYING BITCOIN AND OTHER DIGITAL CURRENCIES TODAY! He wanted to know “the best way to buy Bitcoin, Etherrium, EOS and BNT because I want to buy some now but I have no idea how to.”

This particular money manager is one of the guys who has hated technology stocks and has been all about investing in metals, oil and commodities for as long as I have known him. I thought he was kidding so I asked him.

Me: You are being serious, yes? Him: Yes. Let’s chat later when you’re free.

I’m speechless.

Would I short Bitcoin and/or other cryptocurrencies right now? No reason to. Bubbles can inflate larger than you ever thought possible and trying to time the top of a bubble is very tough. Just consider this a public service announcement.

Finally, I’ll share this dialogue I had with a long-time Trading With Cody subscriber:

Subscriber: You’re probably right about the timing, too, because after buying a little in it’s short June/July consolidation between $2-3000, I had the emotional thoughts of buying big and not caring after it shot up over $3,800. As I’ve learned from following you, that is the time to think letting a little go. Currently, I have very little and it’s for a short term trade with the momentum.

Me: Well-phrased and you are correct, I do believe: “I had the emotional thoughts of buying big and not caring after it shot up over $3,800. As I’ve learned from following you, that is the time to think letting a little go. Currently, I have very little and it’s for a short term trade with the momentum.” The right trade is often the hardest one and emotions are the enemy, so it’s usually best to sell when the emotions tell you to buy. You can always sell a little bit of a little since the reality is that you have “have very little.”