Tuesday December 12, 2017
Total BTC mined: 0.39464575
Total BTC mined USD: $7008.91 (based on today’s current exchange rate)
Total Spent: $1891.50
Remaining to break even: $0.00
Given the appreciation in Bitcoin’s price, the total value of Bitcoin mined has now passed $7,000. But that’s the not big story here.
I bought 5 Litecoins during the summer for roughly $40/each. I left them in my Poloniex account on loan, slowly earning thousandths of LTC/day and content to hold them and see what happens. In the last week, my $200 purchase has now shot up to to nearly $2000 in value and that’s what scares me about the cryptocurrency markets right now.
Even as I type this, the price is jumping wildly by +/- $20 and when I finish the post it could be $450 or even higher based on how far Ethereum is shooting up at the moment. People are getting into the market at record rates because they don’t see the currency ever crashing because we talk about it as a hybrid currency/value store/vehicle and make sure people understand it’s not tulips, it’s not silver, it’s not buying on margin circa 1929 and it certainly isn’t the dot-com boom all over again.
By telling people there’s no risk and creating a feedback loop where everyday you see gains and every moment you aren’t putting your money into crypto you’re psychologically losing out on a million dollar opportunity, it creates a powerful web for the unsophisticated to be sucked into putting money into financial investments they don’t understand.
When the bull community is pressed on the knowledge gap / risk to casual investors, they are happy to say buyer beware or too bad so sad while at the same time tweeting all caps that everyone needs to buy ASAP or lose out forever.
I’m all for cryptocurrency but I want a market that reflects actual value of the product vs speculation. Litecoin has had no fundamental changes over the last week and the only reason people are buying it is due to the fact it’s seen as the next big opportunity given the price of Bitcoin vs perceived value.
We are in the upside down and many people are about to be upside down.
Today’s picture comes to us from AL.Eyad