in the news bitcoin turmoil? What this all about..... See below.
Sentiment Trader here jh has seen some lots of bitcoin turmoil lately and may people predicting ridiculous targets for bitcoin in 2017. Lets pull in the reigns a bit here and study the chart.
The future of the cryptocurrency industry is still clouded with doubt since Warren Buffett has been one of the biggest critics of the market. Bitcoin is, by far, the leading unit in the cryptocurrency market and based on Buffett's comments over time, it is fair to say the legendary investor does not value it at all, let alone imagine a bright future ahead.
I do not really like Warren Buffet the man, because of who he assosiates with, but lets face it, the guys is not poor, and his wealthy for a reason. So I do value what he has to say.
In 2014, just after bitcoin hit an all-time high, Buffett warned investors to stay away from it, saying it was nothing more than a mirage. In response to a question regarding cryptocurrency by Dan Gilbert, the Quicken Loans founder, he said:
"It's a method of transmitting money. It's a very effective way of transmitting money and you can do it anonymously and all that. A check is a way of transmitting money, too. Are checks worth a whole lot of money just because they can transmit money? Are money orders? You can transmit money by money orders. People do it. I hope bitcoin becomes a better way of doing it, but you can replicate it a bunch of different ways and it will be. The idea that it has some huge intrinsic value is just a joke in my view."
Quite interesting if you ask me. But you can take it for what its worth.
True to his word, bitcoin lost more than 80% of its value within the following year (falling from more than $1,000 a coin in December 2013 to about $200 in January 2015). After a 12-month hiatus in 2015 however, bitcoin has since recovered to rally over the $1,000 level and now its sold off back to around $867
Here is the BITCOIN weekly chart. This is quite interesting.
Obviously a break of 800 for bitcoin in 2017 would be bad and create more turmoil shorter term. But we will have to wait and see. The trend is your friend until the end, they say in stock trading, and so far for the last 6 months the trend has been up.
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