Bitcoin Impending Bubble 2017?

Hey you, welcome back to the channel. And guys, today I want to talk a little bit more about bitcoins. My last video regarding bitcoins, I guess you could, you could say I had my head up in the clouds a little bit, and I was talking about the possibility of bitcoins going $1 million per coin and above. And we talked about some practical reasons why it might be able to do that. But let's kind of get back to, you know, back here on Earth, on the ground a little bit, and talk a little bit about the history of Bitcoin and impending bubbles that seemingly hit Bitcoin from time to time. Now the good news is there seems to be a recovery. Bitcoin has done that quite well, you know, over the last decade almost now. And, you know, that kind of signals to me a bit that Bitcoin may be here to stay. But let's just talk about the dangers of the impending bubbles, and maybe what we can do to protect ourselves and bitcoins if that were to happen, probably what one should do and how to go about it. So a lot of the tactics I'm gonna talk about with bitcoins is gonna come from other economic models dealing with stocks and commodities and things like that. And I understand that bitcoins is a different animal. We, you know, it's hard to determine what's driving the price price of Bitcoin at a particular time. We don't know what the future may bring with Bitcoin, what may happen, what may happen, uh, you know, regarding governments or, uh, you know, regarding, uh, you know, uh, people and monetary policies and things like that. So, uh, very hard to predict the future. We can only kind of look at the history of Bitcoin see some of the events that have taken place and kind of drop a plan from that. So let's see if we can put together a practical plan, you know, if we do get the impending bubble, which I believe we will get. I think we will go through a type of recovery, you know, bubble, and I think that's going to be actually quite healthy for Bitcoin as it's trying to adjust to a, you know, to finding its, its, its, you know, real price. And, you know, some examples I'm going to use for that: if we think in terms of companies, stocks, and various things like that, you generally will have two ways of valuing what the price of a stock will be One is generally going to be its book value, and then you're going to have the net asset value. So the book value, uh, you know, is basically going to be, you know, what it is when you, when you, when you break it, you know, when you— what the current price of the stock is at the particular time. But the net asset value that's going to be the actual value of the stock itself, you know, or the underlying security or what have you. So we're going to try to use bitcoins interchangeably, you know, in this example, just to kind of get an idea maybe how we could look at bitcoins and what might be a comfortable price for bitcoins and when we should buy and when we should stop buying, various things like that. So let's, let's just go with that example for a little bit here just to kind of get an idea. So, uh, basically, you know, with the book value, again, sometimes the underlying, underlying security may trade twice that price, you know. So if we, you know, an example like this, if we, we break down the value of Bitcoins right now, let's say Bitcoins is is now at, uh, I guess it's about $40 billion in Bitcoins alone at this point. And the other $100 billion valuation, or maybe the other $60 billion or so, just kind of ballpark figures here, are going over to crypto, the other cryptocurrency pool, right? So, uh, we kind of got Bitcoin right now kind of selling, hovering around this $2,000, $2,400 price. And it's kind of holding there, and we're kind of at the $40 billion mark. Okay, so let's just take everything into account for that. Let's just say everything stays how it is, and let's try to evaluate now Bitcoin at a— let's just come up with a reasonable number just for this example. Let's say that Bitcoin gets to a valuation, let's, let's say another, uh, uh, uh, uh, it doubles it. Let's say another $50-60 billion goes into Bitcoin, which I don't think is being, uh, too unreasonable. And, and so if that happens and another $50-60 billion comes into Bitcoin and you got a, uh, now $100 billion solely in Bitcoins itself, um, and, uh, Bitcoin's at about $2,400 right now. Let's say that valuation caused the price of Bitcoin to double. Now Bitcoin is trading around $5,000 per Bitcoin, uh, and it's holding about $100 billion in it. Also, sometimes, uh, at the book value of Bitcoins whatever the, the, uh, book value of an underlying, uh, underlying security is, perhaps it'll trade maybe twice that amount. So maybe it was at $5,000 for $5,000, shooting up around getting close to $10,000 per Bitcoin. Uh, we're at $100 billion, or we're at $200 billion, or we're even at about $500 billion in Bitcoins. And I, and I, uh, I, I, you know, the reason I think Bitcoins can probably comfortably hold a valuation like that is because, you know, we got companies that operate in just in the United States that hold valuations like that and things like that, and the stock prices kind of hold. And so, you know, definitely a far cry from trillions of dollars inside of Bitcoins, but we kind of get the point. And so just kind of Uh, basing things on that, uh, I would say that, uh, you probably don't want to be buying Bitcoins over $10,000. That's just my, you know, how my brain's working and matching around is that anything after $10,000, um, you know, I think you're gonna see tremendous crashes with Bitcoins and, and, uh, you know, probably bubbles that it won't recover from. And I just feel like about half a trillion dollars or a quarter of a trillion dollars is something realistically probably Bitcoin can hold. You know, if we, if we think about our— if we, if we think about, you know, where Bitcoin price is today, You know, that would still represent about a 5-time increase in its value. That's still pretty good. Uh, you know, in addition to that, uh, it's quite possible that Bitcoin can continue to dip, you know, even down a lot more. And then as it goes on its recovery, as it dips down, that's an opportunity to be buying up Bitcoin. So I think Bitcoin is going to be really good to be buying I would say anywhere from upwards to $5,000 to $10,000, you still can be buying on Bitcoin. Of course, now I would think it's the best time to start buying Bitcoin. Or if Bitcoin dips below the price it's at now, which I think is hovering around about $2,400— I have to check it— that'll be a great buying opportunity as well, because I really do think Bitcoin is going to be able to hold a valuation of anywhere from $250 billion to $500 billion quite easily. And, uh, that valuation I think is going to stay in Bitcoin for a while. And even if we have, uh, um, you know, other cryptocurrencies rise up, I really think that the other cryptocurrencies are going to be diluted out very— you know, I don't think there's going to be a huge future in the other cryptocurrencies besides, um, you know, basically trading in and out of them when they dip, making a little bit of money on the way back up. But I don't think these are going to ever take off and really hold, you know, substantial valuations like, you know, Bitcoin is able to do at this point. So those are my thoughts on the impending bubble with Bitcoin. It is coming. I have no doubt that bubbles are going to come as the price of Bitcoin increases. They're going to come quite frequently. There's gonna be bubbles, it's probably gonna be even some, some, you know, dramatic crashes, but I think bitcoins will recover every time from that. At the point I don't think Bitcoin— I think it was gonna kind of come to this standstill is, like I said, is when it gets around $10,000 per coin. So that gives us a lot of space and time to be getting in bitcoins and making a fairly good return on your investment in Bitcoins, you know, as well as taking advantages of trading in and out of Bitcoin. So that's my thoughts on, uh, uh, you know, Bitcoins and, and, and an impending bubble. Uh, guys, if you like content like, uh, like this, don't forget to like and subscribe. And until next time, guys, take care.