STE's Stocks Investing Journey

  泡沫頂端？世界首富換馬斯克 比特幣莊家都是海盗 20210108《楊世光在金錢爆      < source & Video credit to : > 《楊世光在金錢爆》 Bitcoin rally may be the 'mother of all bubbles' says BofA < source: CNN.com> Bitcoin may still surge and keep hitting another all time high ... till $200k   , nobody knows as market is flooded with massive liquidity and irrational , as always .  Those invested in Bitcoin will just need to be wary that don't be left without a chair when the "music stops" . Cheers ! Disclaimer The information contained within this blog is provided for informational purposes only and is not intended to substitute for obtaining professional financial advice as the writer is not a certified financial adviser. You are responsible for your personal finances and should not rely on this site or anyone else to make the final decision for you and please do your own due diligent in using information from this blog.

<image credit: realinvestmentadvice.com> “ An  economic bubble  or  asset bubble  (sometimes also referred to as a  speculative bubble , a  market bubble , a  price bubble , a  financial bubble , a  speculative mania , or a  balloon ) is trade in an  asset  at a price or the price range that strongly exceeds the asset's  intrinsic value .  It could also be described as a situation in which asset prices appear to be based on implausible or inconsistent views about the future.  Asset bubbles date back as far as the 1600s and are now widely regarded as a recurrent feature of modern economic history. Historically, the  Dutch Golden Age 's  Tulipmania  (in the mid-1630s) is often considered the first recorded economic bubble.” From Wikipedia .com

After warning issued from China, India, Malaysia, Thailand Central bankers, many monetary regulatory seems to follow suit and came forward to warn the RISK of investing in Bit-Coin....as it may turn out to become a " systematic risk " which really can create " chaos and havoc " to the financial market/system if it continues to grow at " exponential " rate before it collapses. This could be seen from the total market cap for Bit-coin which is around USD290 BIL ( at the supply of close to 16 mils ) , can you imagine if the total supply achieves the full amount of 21 MIL, and if the price hit USD50,000 , what will be the total market cap of Bit-coin?

I took out this book from my bookshelf recently and re-read it again, with much curiosity, I wanted to find out if I could learn something from the past financial crisis and if there is any similarity of past crisis vs recent crazy the price movement of Bitcoin.    I read with great interest especially in Chapter 4 ( Fueling the Flames: Monetary Expansion ) . Quote “ Speculative manias gather speed through the expansion of money and credit or perhaps, in some cases, get started because of the initial expansion of money or credit. One can look back at particular manias followed by crash or panic and see what went wrong .“ Unquote

What is Bitcoin ? image credit to coindesk.com (from Wikipedia ) Bitcoin   is a worldwide  cryptocurrency  and digital  payment system  called the first decentralized  digital currency , as the system works without a central repository or single administrator. It was invented by an unknown person or group of people under the name  Satoshi Nakamoto   and released as  open-source software  in 2009. The system is  peer-to-peer , and transactions take place between users directly, without an intermediary. These transactions are verified by network  nodes and recorded in a public  distributed ledger  called a   blockchain .