Bitcoin Bears Have Claws
Listen, I’ve explained the phenomenon that is Bitcoin a lot in this segment over the time. Generally, I’ve warned people to avoid punting on Bitcoin.
Because you got so little control, almost no knowledge about what you’re investing in. And at almost every step, I’ve was wrong.
The price of Bitcoin has just soared and soared, just a month ago I said to come back and look at its value in a years’ time. Well, it was $US10,000 then, it was more than $17,700 at some point overnight.
As I did say, I was wrong about the price. But something did happen overnight, that’s a bit of a make or break for Bitcoin. Bitcoin futures started trading on the Chicago Board of Exchange – a proper exchange. And it was a wild ride.
It always people to bet on the future of Bitcoin. It means also, it can go long or short.
Now, I want to take you back to Margot Robbie.
No, I haven’t gone mad! Margot Robbie in the bubble bath in the movie, The Big Short. Remember? Explaining about traders how found about those US mortgages before the Global Financial Crisis were really, really poor quality.
Margot Robbie: So now he’s going tosh ort the bonds. This means to bet against. Got it? Good.
Ross: Got it? Good.
But before they got to the point of being able to short the housing market, the investors who bet against them convinced Wall St to create financial markets that they could short – to bet against.
Collateralised Debt Obligations, Collateralised Default Swaps. Remember those ones?
Well, here is the parallel with Bitcoin.
For the first time, anybody who thinks Bitcoin is a con can bet against them…short them. You got that?
Now, to be fair, there were more people buying Bitcoin Futures than selling them. So the price, just a short time ago, was $17,940. Up almost two and a half thousand on the night – up 16 percent.
In other words, the bulls were beating the bears handsomely. But for the first time, the Bitcoin Bears have got claws. I just wonder when they are going to sue them.
Overnight, the Dow Jones Index up by 36. The Dollar 75.3 US Cents.
Quicklinks to recent Money Minute progammes