December has continued to be the month of the bull for the cryptocurrency markets, with the total market cap of all cryptocurrencies closing at $617bn USD today(Dec 18th), which has more than doubled in just 18 days. If you have been involved for a bit, your blockfolio is hard to stop looking at, and this number helps explain the ‘how do I buy’ texts that came in from friends, moms, long lost relatives, and really anyone who was looking to chase the gains. It is usually not a good thing when 99% of people don’t understand what they are buying, and the next correction will be harsh; as ‘weak hands’ who have bought Bitcoin with dreams of Lamborghinis quickly let go of that coin when weather turns rough.
The next correction? But I thought cryptocurrencies were going to go up forever? To be fair, no one knows when the next correction will be, but let’s put some context behind the numbers as they stand:
~$544 trillion USD - Low end estimate of global derivative market
~$217 trillion USD - Global Real Estate Market Value
~$215 trillion USD - Global Debt (325% of GDP)
~$90 trillion USD - Global Money Supply
~$73 trillion USD - Market Capitalization of All the World’s Stock Markets
~$7.7 trillion USD - World Gold Supply value
~$4.5 trillion USD - Federal Reserve Balance Sheet
On March 10th of the year 2000, the total market capitalization of the NASDAQ was $6.71 trillion - this was the height of the dot com bubble, almost 20 years ago. That leads us to the market cap of Cryptocurrencies at the end of September 18th, 2017:
~$618 billion USD
If the cryptocurrency trend is really going to change the future, then we may be seeing an escape from the burning building that is our current debt based monetary system. Head to http://fiatleak.com to witness folks jumping right now (live feed visualization of the world currencies flowing into Bitcoin).
But who knows, this whole thing could come crashing down tomorrow, it could… So please don’t take out a loan against your house or 401k to buy cryptocurrencies.
And the winner is…
Coinbase - Ever hear the phrase that the folks who got rich during the Goldrush weren’t the ones chasing gold? The people who got rich during the Goldrush were the ones selling the tools! That’s Coinbase here - taking a smooth 5% fee on anyone who’s FOMO led them to instantaneously download the Coinbase app, and transfer fiat money into the app to buy Bitcoin, Litecoin and Ethereum.
Speaking of Coinbase, everyone is chomping at the bit to hear what the next round of coins offered for instant purchase on their app is… Chances are these coins will moon immediately upon being announced.
Crypto Bull cannot be held responsible for any losses incurred in investments. The content of this site is not meant to be financial advice and is only opinion. Any transactions made in the space should be carefully approached and considered.