The Merits of a Sustained Cryprocurrency Bear Thesis. - Daily Musings

The Merits of a Sustained Cryprocurrency Bear Thesis.

The Merits of a Sustained Cryprocurrency Bear Thesis. There have been numerous bear markets in Bitcoin's history, including 2 previous downturns where the cryprocurrency market lost 80-90% of its value in 2013-2015. As more companies...

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The Merits of a Sustained Cryprocurrency Bear Thesis.

There have been numerous bear markets in Bitcoin's history, including 2 previous downturns where the cryprocurrency market lost 80-90% of its value in 2013-2015.

As more companies including Facebook, Overstock and even the Nasdaq and NASA invest in blockchain technology, the bull case for Bitcoin and the cryprocurrency enlargens.  Still, Bitcoin bears persist and their reasons have merit.

Reasons for a bearish cryptocurrenct outlook:

Lack of institutional investment, and loss of interest.  Advisors at Fidelity and other large brokeridge houses have discouraged investors away from the cryprocurrency market.

High fees and difficult transfer methods.  Bitcoin and other cryptocurriencies can be hard and costly to convert to fiat currencies and often cost a percentage of the asset value vs a fixed reasonable fee.

The coins are not backed by anything and could vanish overnight.  This is the mainstream view, right or wrong.

The insane volatility of the cryprocurrency markets is a turnoff to many traditional investors.  A bear market in stocks is 20% in losses, we experienced a 90% loss last year.

Scams like Bitconnect and ICO run-aways put investor money at risk.

The cryprocurrency technology is mysterious.  It is hard to measure value given traditional metrics including P/E and profitability.

What is your bullish or bearish stance on the cryptocurrency market?


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