Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

End of Bitcoin Bubble Maniac?

1 min read

In case if you havent heard about the digital currencies Bitcoin and Ethereum, in the last three months Bitcoin value has risen exponentially to 150% and more than 400% in the last 1 year alone. Demand for crypto currencies soared with the creation of new tokens to raise funding for start-ups using blockchain technology.

New Kids on the Block

Lots of News Kids who are very new to financial markets are involved in such kind of transactions and the numbers keep increasing. New Bitcoin investors are quite crazy about investing in bitcoins, one of the reason why there is a positive feedback loop formation in digital currency. No one have any easy clue about how to value this asset class and none seems to care when comes to bitcoin valuations!

Is it yet another Tulip Mania?

Strong demand from Japan and South Korean people fueled Bitcoin price raise to exponential highs and that sound like a yet another Tulip Mania as bitcoins cannot be backed by any government and can’t be physically held in your hands. Lots of Indians are seems to be involved despite RBI alerts on virtual currencies.

“An investment of $1,000 in bitcoin in 2010 would be worth more than $73 million today.” These are the kind of statements that make people to believe and take crazy extrapolated bets.

Media shows love towards exponential growth

Some people in the FB are not convinced with the Bitcoin valuations so they are investing in other digital currencies like altcoins, Dogecoins as if it is going to be the safest asset class to invest.

Old Memories haunts

New people are flocking into Bitcoins

Indian Bitcoin Wallet Providers like unocoin and zebpay are seeing surge in their web traffic and mobile app downloads shows increased interest from the Indian users to buy and sell bitcoins.

No one knows the real impact when the bubble starts crashing. This is a real bubble stay away from it!

Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

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2 Replies to “End of Bitcoin Bubble Maniac?”

  1. Bitcoin has no regulatory onditions or control of any policy ……blackmoney from accros the world is pumping its rise…..some say it emoney …..RBI has warned twice but people are ready to risk at such a high valuations …one day it can b zero ……sudden rise can result in sudden fall also …..many feel missed out …many of my frens are regretting they missed …..i saw it at just 350 dollar …..highly risky ……better keep away …..rksharma1091

  2. Hi Rajendran,

    Below is the number of “deaths” for bitcion. Media has celebrated the “crash” of bitcoin also so many times.

    https://99bitcoins.com/bitcoinobituaries/

    Point is, since so many traditional finances including even banks and nations are adopting bitcoin, isn/t it too big to fail now?

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