Bitcoin – Is Perception Enough to Become Reality? Survey Results and My Thoughts
There are no shortage of strong opinions on the matter of crypto-currencies like Bitcoin $BTCUSD I am very intrigued by it from a number of reasons.
1- I am a trader and the volatility is amazing. It seems to me that there are a lot of amateurs trading the crypto currencies and that creates a fertile environment where an experienced and disciplined trader can do well (really well).
2- There are a lot of inefficiencies in trading Bitcoin, Litecoin and other crypto currencies. I am in Las Vegas at the Inside Bitcoin Conference to meet with industry leaders so I can share with you the best ways to get involved. BTW, I expected to see a lot of “Kool-Aid Drinkers” here but I am impressed that the attendees are very level headed. There is definitely optimism and excitement but it doesn’t seem giddy at all.
3- Economics 101 brings us a million questions about what this whole thing means. I am a technical analyst and I believe price action rules all and that is how I will continue to trade Bitcoin, Litecoin and whatever new and liquid crypto-currencies come onto the scene. I am also fascinated with the idea of how something can just get invented electronically become so widely accepted on a global basis. I will keep my main thoughts (and writings) to price action and psychology of the price movement. Behind the scenes I will be thinking about: what is money? what is value? who should control supply of money or influence its value? I will also think about gold, guns & butter and other deeper thoughts about human behavior.
Here are the results of the survey I asked twitter user to participate in.
The phrase “perception is reality” comes to mind when talking about what Bitcoin is worth. If enough people believe in Bitcoin then it has value, it is no different than gold, paper money or anything else we exchange for goods and services. I believe that we are in about inning 2 for crypto currencies, the problem is that this game has landmines littered everywhere and they could explode at anytime. We are either witnessing something which will be a true game changer for global economics or it will be an amazing social experiment. Either way I believe that, as with all markets, a strong defense will be crucial to trading profits and long term success.