The Final Word on Bitcoin in 2019

The Final Word on Bitcoin in 2019


– [Peter Leeds] We made the
video here calling the top,
around this area,
and then we made another video
explaining Bitcoin backdraft,
and here’s where we made the
Bitcoiin Bloodbath video.
We also made How Will
Bitcoin Do in a Recession?
We made this video 2018 Bitcoin
and Cryptocurrency Prices,
Bitcoin Backdraft, Bitcoin Price.
(heavy bass pop music)
Do not like most of
these cryptocurrencies,
and I’ll tell you exactly
what the problem is right now.
This is CoinMarketCap.com,
this is a site you can go to
to check out the market cap
of all the different cryptocurrencies,
and you can see here that
they tend to basically trade
similarly to each other.
You’re not often going
to see one cryptocurrency
rising a lot in price,
while everything else is falling.
Generally they’re going
to trade like a flock,
they’re going to trade like
a rising tide lifts all boats
or a sinking tides lowers all boats,
that’s exactly what’s going on here
with the cryptocurrencies
lately, especially Bitcoin.
We’ll use Bitcoin as the templar example,
because it is the most popular,
first and largest market cap
of any of these cryptocurrencies.
But let’s check out the —
you’ll see the decline is 12.5%,
just in the last 24 hours,
but let’s take a look
at the fall chart here.
So this is prices of Bitcoin,
and you can see that most people
actually lost money on cryptocurrencies,
because if you bought here,
then you probably made a ton of cash.
But you can see the trading activity,
the volume, most people bought in here,
it started becoming much more popular,
and it sort of is like a standard mania,
where it sort of hit the highest point
when most people started getting involved.
So when it was trading this high,
you can see that most of
the activity happened,
people got involved, and then
as the stock price collapsed,
that trading activity stayed high.
But most of the buying
and selling happened
as the stock has declined
in value from $20,000.
And I say stock, but I
mean this cryptocurrency.
But check it out, this is about where,
let me get a better chart here,
this is just under $20,000,
that’s about where I
came out with the video
which called the top in
the cryptocurrency market,
and I based that on
saturation and fragmentation.
Everybody and their grandma
was into cryptocurrencies,
and every time a cryptocurrency
started rising in price,
more cryptocurrency options arose,
and therefore the money
that was going into digital currencies
was being fragmented and
chopped up and spent out
a little bit less money going
into each cryptocurrency
and each option over time,
and that just continued and continued.
And if cryptocurrency prices doubled,
then you’re just going to see
more options of cryptocurrencies.
There’s only so many dollars
going into the space,
and the dollars going into the space
are the only thing which
is actually keeping
this concept of digital currency alive.
But we made the video here
calling the top around this area,
and then we made another video
explaining Bitcoin backdraft,
and here’s where we made
the Bitcoin Bloodbath video.
We also made How Will
Bitcoin Do in a Recession?
We made this video 2018 Bitcoin
and Cryptocurrency Prices,
Bitcoin backdraft, Bitcoin
price, Bitcoin collapse,
all this stuff I try
to explain to you guys,
and no one knew where things were going,
but based on the psychology of investors
and the way that people
think, especially in manias,
then you’re gonna see a lot of,
or be able to predict a lot of the ways
that the prices of these
cryptocurrencies are going to go.
But let’s zoom in here to the
more recent trading activity.
You can see that this was
a consolidation period,
where investors were not sure
what the value of Bitcoin should be.
And then it dropped off another cliff.
And then it dropped off another cliff.
This is not giving me a lot of optimism
for future strength in cryptocurrencies.
But I’ll tell you now what happens next,
and no one listened to me the first time,
or the second time, or the
third time, or the eighth time,
but I’m telling you what’s happening next.
And this is not a slight
against cryptocurrencies,
I’m a big believer in them, I
think they’re a great concept.
I’m saying as an investment vehicle,
this is not a good option for most people,
especially the ones who
don’t actually understand
most of the technology going on
behind the block chain and everything.
But what happens next, in my opinion,
and I’m wrong 100% of the time,
is that there will be an attrition rate,
stores and businesses which
accept cryptocurrencies
right now will no longer do that.
At first cryptocurrencies were so new,
so everybody was just getting into
accepting or using cryptocurrencies.
But now, businesses which did accept them
are realizing that it’s not
a good way to sell products,
or to understand the
value of your inventory.
If you sell something in cryptocurrencies,
and then four days later,
the cryptocurrency is
worth half the price,
you just moved a bunch of inventory
that you sold basically at half off.
Businesses are not going
to put up with that,
they aren’t able to.
Secondly, as we approach a recession,
cryptocurrencies are one of the things
which will be collateral damage.
If you own shares of IBM, and
the IBM shares drop in value,
as we’re going to be seeing
as this recession rolls into town,
your stock broker can make a merging call,
and say you have leverage or debt with us,
and that that’s based on
how much assets you have,
but one of your assets,
IBM, has declined in value
by so much we’re not comfortable anymore
with loaning you such a high
percentage for the shares
that you’re going to be speculating in,
so therefore, we need you
to put more money into your account,
or sell some of the assets
that you own to cover over
that difference that’s
making us uncomfortable.
That’s what your broker’s gonna tell you.
You’re gonna get a merging call.
And when people start
getting merging calls,
what happens is that they
have to sell some asset,
whether it would be any other stocks,
the owner, perhaps if they own
Bitcoin, maybe they sell that
to get some more money
to cover off the losses
that they’re suffering in IBM shares.
As well we’re rolling
into tax season next year,
and what happens is that some people
who have made a lot of
money on cryptocurrencies,
have to, maybe they didn’t
think about it at the time,
they’ve got to pay tax
on any of those gains.
And so there’s gonna be a lot
more hoops to jump through
and details you have to take care of
to make sure that you’re in compliance
with the IRS’s demands for
dealing with cryptocurrencies.
And this is all in addition to
what I believe to be, as I
explained to you very recently,
it’s a complete shifting of the psychology
of the way that people
think about Bitcoin.
It went from something which
was all over the media,
and it just increased in
value, and increased in value,
and it made people rich overnight.
It went from that to an actual risk asset.
If you buy cryptocurrency,
you’re actually more likely
to be losing money than making money.
And so it basically pulls the rug out
from underneath the feet of the concept
of the value of cryptocurrencies.
And, yes, people will say, well
cryptocurrencies are great,
beause A, B, and C and D, and
the technologies and all that,
I agree with all of that,
but the point is that
the majority of people
who are investing in cryptocurrencies
are not doing it because of
the quality of the technology.
They’re doing it because they think
they’re going to get rich.
And now that’s shifted,
it’s actually more likely
that you’re going to lose money,
and therefore the actual
strength or driving force
of digital currencies is
absolutely upside down.
It can’t last this way,
and therefore in the short term,
cryptocurrency prices
will continue to decline,
but they will find a bottom,
and when they do, the outliers
are going to disappear.
But Bitcoin specifically, and
a lot of the more popular ones
will be around possibly
for our entire lifetimes.
So there will be a point
where it would make sense
to speculate in a digital
currency like Bitcoin,
but I wouldn’t go near any of
the other ones no matter what,
and even if they say this
technology is better than Bitcoin,
the problem is it’s subjective thinking.
People believe that if
a technology is better
than the leading cryptocurrency,
then that’s subjective thinking.
It’s not objective.
People are saying that
if one of the digital
currencies, whichever one,
has some technology that’s
better than Bitcoin,
they act as though the
price should increase
by more than Bitcoin,
but the prices of any of
these cryptocurrencies
does not trade based on the technology,
that’s what I’m trying to explain to you,
and people are gonna say,
yes but this technology,
and this aspect, and this
aspect, and so therefore,
the prices won’t increase.
And that is absolutely not the case.
And be very cautious now,
because there’s a lot of
other prognosticators,
who I know for a fact were
very bullish on Bitcoin,
who now are turning around
and acting like that they were telling you
or warning you that it was
gonna decline in price,
and they absolutely did not,
because I follow a lot of these guys,
and I follow them in real time,
and I disagree with most of what they said
about cryptocurrencies,
and they were hedging their bets,
they’re saying, oh, it could
go up a lot, or whatever,
but they weren’t looking
at the right aspects,
just like cryptocurrency investors
are not looking at the right aspects.
This is a mania, this is an
investor psychology play,
and if you understand the
way that people think,
you can absolutely dominate and benefit
from these cryptocurrency prices
in markets and the various technologies
that are available and out there.

24 thoughts on “The Final Word on Bitcoin in 2019

  1. Most businesses that accept bitcoin as a form of payment are unaffected by the price fluctuations of bitcoin because the transactions are most commonly settled for fiat at the moment the transaction is confirmed. Considering it'll always be cheaper(and bitcoin never goes down like Mastercard and Visa did numerous times last year), it doesn't make sense that merchants would take the payment option away from customers, even if this isn't the end of the bear market as I suspect.

  2. you got it right beeing a contrarian calling the top, why would you follow the herd now? I think that's the wrong way to look at it

  3. I think crypto is about to find it's bottom n then rise up again
    USD is gonna die n crypto will prevail, metals r just gonna stay as they r but that crypto shit is gonna boom with these milenials n this digital era

  4. Love your content & totally agreed with your fragmentation vid & also 1k BTC would not surprise me either. I've been thru the previous bubble & bear market already. But I have to disagree with your views in this one. Merchants that stop accepting crypto happens in every bear market but theres always more merchants left than in the previous bear market, adoption continues to happen regardless of price. These crazy manias are common in BTC & in crypto & will likely continue to happen. Have you actually used crypto for payments? The usefulness of these things & the scarcity (yes even with so many flavors) is what drives the price over time. The macro trend is mega bullish even if we go into multi year bear markets now & then. But it's not just the trend, its mostly as I said because of its incredibly useful. Also BTC dominance it's been in a down trend for a long time. It's hard to guess which altcoins will do good at this point cause there's just too many, but some will very likely do better than BTC, in fact BTC fundamentally has never been this bad before.

  5. I tried to buy some crypto on coin base but fate did not allow me and I thank the universe / gm is shutting down a plant in Canada that's been running since 1907 it survived the recession but not this

  6. Hey, Peter, I'd like to have an update on Gold, Silver and miners. You haven't talked about it lately, and I think that's more your expertise.
    Looking at charts throughout history, Gold and especially Silver (initially) went down with stocks, and all miners with them (like minus 80-90%). Of course there will be a massive opportunity down there, but do you really think this time will be different and precious metals will soar from here on (while stocks crash)?
    e.g. First Majestic could go to 0,70USD easily, if Silver continues to drop. That's worse than what can happen to Bitcoin in my opinion.

  7. I just can't believe that it took this long for it to tank. I thought it was going to drop much quicker than it did. It's a "currency" that isn't used hardly anywhere as a currency. People want one thing in the end. Sweet, FIAT cash! The end. I've been bearish on BTC since before it even rose the last time. It's just not a solid investment, imo. It's a pump and dump that got it's 15 minutes of fame with the masses.

  8. Thanks, Peter. I really like bitcoin (long-term) and I feel that you made a fair and thoughtful video about cryptocurrency.

  9. I sold my coin yesterday,but I still make some money. I’m thinking about precious metals at this point. No way I would buy stocks.

  10. Been following you for a while now Peter and you are the real deal – legit, genuine advise 🙂 Also bought your penny stock for dummies book and it was very informative! – Thank you Sir!

  11. HI PETER WHATS YOUR THEORY ON A recession BEING DELAYED DUE TO TRUMPS POLICY TO BRING DOWN THE PRICE OF OIL PRICE GIVING PEOPLE AND BUSINESS MORE MONEY TO SPEND , PEOPLE BELIEVE ITS GOING TO AVOID A CRASH FOR THE TIME BEING

  12. Yeah, heaps of good points Peter.
    I'm mainly enthusiastic about the concept of Bitcoin, or should I say against the concept of an ever-expanding fiat system backed only by the military. I know it'll be a bumpy road, but I'm happy to invest in a chance of building a better future.
    So what I'm hearing is "it's nearly time to buy more bitcoin!" Cheers

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