[Video Blog #37] - Will Millennials Destroy Bitcoin?

This week we have seen a major pull back and somewhat of a mini crypto crash.

It had to happen and it is good for the sector.

I feel it is a good time to consolidate and assess what happens over the coming day and get a good feel for how the market responds.

I can see some more pull backs and some ups and downs with some very aggressive swings on a day to day basis.

Time to buy on the lows, be patient and hold unless you are a speculating expert.

Will Millennials Destroy Bitcoin?

INFORMATION COURTESY OF LUKE BURGESS WITH MY OWN TAKE ON IT.

Currency is typically used in exchange and while Bitcoin can be used as a unit of exchange, it is largely not used this way...yet.

Gary Schneider, a Professor of Accounting at California State University, says only about 10% of Bitcoin is held by people who actually use it as currency.

I would actually think it is a lot less than this.

The large majority of bitcoin owners are speculators hoping to sell at higher prices or hold for the long term.

The fact that the market is dominated by young speculators is not necessarily the problem for Bitcoin.

The problem for Bitcoin is its buyers.

Are they just buying at any price?

Are they influencing surges in price due to poor timing?

Who are they?

Well, according to a recent survey, approximately 60% of Bitcoin owners are under 35 years old.

In short, most Bitcoin buyers are millennials.

The fact is this: A 35-year-old speculator intrinsically has much less experience in risk management than a 60-year-old.

Most Bitcoin owners are mostly speculators, as opposed to users of the product.

They're speculating on a currency, which is among the most volatile of financial instruments.

They're speculating on what essentially amounts to a new, experimental currency not tested at a mainstream level.

All this considered, Bitcoin looks to me as the most speculative financial instruments available this time.

It will be driven by emotion and speculation due to these factors.

Some people are just in it for the $ so we will see people take profits and often.

Is Bitcoin headed for a crash or a series of mini crashes?

Are we seeing one now?

The come down after the high?

Below is an extract from Lukes email and I have left it exactly how he wrote it so all credit here goes to him and I appreciate his contribution.

EXTRACT FROM - https://www.wealthdaily.com/articles/bitcoin-mania-the-bitcoin-bubble/8689

Dutch Tulip Mania

In the 17th century, formal futures markets developed in the Dutch Republic, providing the infrastructure for a massive bubble in the price of tulip bulbs.

The tulip first became fashionable in France, where early modern ladies of the aristocracy began sporting the flower on their dresses. From there, the tulip became the flower to show off social status and wealth. The demand for bulbs subsequently skyrocketed, and prices immediately followed.

At the peak of Tulip Mania in 1637, a single tulip bulb could cost as much as 10,000 gilders, the price of a nice middle-class townhouse in Amsterdam. According to one author, 12 acres of land was once offered for one rare bulb.

For a flower bulb!

The Semper Augustus was the most coveted of all Dutch tulips.

Of course, the bubble eventually burst. The price of tulip bulbs collapsed, and fortunes in perceived value disappeared over night.Dutch Tulip Mania

In the 17th century, formal futures markets developed in the Dutch Republic, providing the infrastructure for a massive bubble in the price of tulip bulbs.

At the peak of Tulip Mania in 1637, a single tulip bulb could cost as much as 10,000 gilders, the price of a nice middle-class townhouse in Amsterdam.

According to one author, 12 acres of land was once offered for one rare bulb.

Of course, the bubble eventually burst.

The price of tulip bulbs collapsed, and fortunes in perceived value disappeared over night.

END

Will this happen to Bitcoin?

Has it already occurred fro many people who bought in on the high?

How long will they have to wait for recovery?

Let me know below what you think about all this.

Follow Sebastian - @sebastianjago

Have a great day!

~Sebastian

TIP OF THE DAY: Realise some profits at some point and buy some gold, silver and anything real. This includes seeds and water filtration systems.