RE: Daily: Biggest Bubble Ever?

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Daily: Biggest Bubble Ever?

in bitcoin •  7 years ago 

Informative video. I'm new to cryptocurrency (and Steemit). I took a look at the market data (which I didn't know existed until I saw your video) and notice there are A LOT of cryptocurrencies out there, which makes this all the more confusing for a beginner. What happens if there is a bubble with a currency like bitcoin and it bursts? People just potentially lose money?

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Also, bitcoin bursting will generally drag down the other 1000+ crypto currencies on the market. While these coins can be technically independent of each other (as they should be), bitcoin's notoriety and place amongst the public eye as "the" crypto currency causes widespread fear for the entire market when bitcoin experiences a bear phase.

If the bitcoin bubble bursts you still have the same amount of bitcoins, but they are worth less. You can either keep your bitcoins waiting for it to (hopefully) raise in price over again, or sell it at a lower price you bought and lose money in the process. In this way it's similar to owning shares in a company.