Skip to 9:08 to hear my arguments why I am bearish again. - Summary vlog: Changed my mind since last vlog, most likely the rebound from $6000 to $12000 is behind us and it is down again from here. Odds 60% we see $3000 before new bull market, 40% we have a third leg up from here breaching ATH's. Also a word on amount of transactions and value transacted on BTC vs ETH vs BCH: https://bitinfocharts.com/comparison/transactions-btc-eth-bch.html#log
Check out recent tweets from coinmetrics for bearisch indicators: https://twitter.com/coinmetrics
Google search trends have collapsed much more than price: https://trends.google.com/trends/explore?date=2010-01-26%202018-02-26&q=buy%20bitcoin
Gov starting to clamp down pretty hard (SEC on ICO's) are so typical to a Bubble POP, not just correction.
Also @Davincij15 his opinion that it will likely drop to $3k before continuing to grow, and trololo his opinion that it will take a while before ATH is broken, influence me: https://www.youtube.com/watch?v=boutqoS0YaE
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https://www.youtube.com/watch?v=IL-r0R35Eow
Updated returns, stocks (16%) as well as gold (11%) did well this year, unlike last year where stocks did poorly (-18%) and gold just ok (0%). The surprise is again cash that is again returning 5% this year, which is zero after deducting 5% inflation. Last 10y, deducting also 5% for inflation, stocks still returned 7%, whereas gold only 1%.
The trend is still very clear if you look at the long term chart since 1928. A reversal in returns is unlikely given how short and weak this stock market cycle has been. Stocks can return a lot more and typically do if you look at previous cycles, and the inverse is true for gold. Gold held up well still but it can get a lot worse.
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https://www.youtube.com/watch?v=fOV_zj5QTLM
Why I believe so much in Tesla and some price comments. Price found low at $177 allowing me to add another 10% @ $180, to 30% total, but then went up strong yesterday to $194. Won't be discouraged by rising prices and try to make sure I get my full position of 50% so that all my cash is invested, but do so with half on margin (25% portfolio, and therefore have -25% margin loan) so that I still have half my cash free in open orders to buy crypto if it drops a lot.
Think this is a great backup plan as crypto may of course not fall a lot in which case I won't be buying it, but I also did not miss this amazing opportunity, so different from crypto, much lower risk and also great potential. It does however mean, if Tesla goes down, I have less cash to invest in crypto, but if Tesla goes up while crypto down next half year, I have more cash to invest in crypto, which seems most probable scenario.
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https://www.youtube.com/watch?v=8roVPnnqQUo
Thought I was only increasing potential reward but not increasing my risk as long as I kept the investment isolated and did not invest more if it would go down. However this would not be a good investment strategy as one always needs to judge an investment based on it's current allocation and risk/reward ratio. Typically, when an investment goes down a lot but fundamentals are still good, risk/reward ratio has gone up a lot and therefore increasing allocation is a must if one aims for optimal returns.
I also reasoned since chance is low Tesla will drop to say $100, or go sideways for long, causing margin calls and reducing my equity and amount of shares with every whipsaw, chances are high I will end up with more shares thanks to a margin loan. And in the end, if it tenfolds, that is the only thing that counts.
However even if one does not isolate the investment and is open to invest more if it would go down, this is less likely to happen as you are now forced to invest more just to keep your shares, and therefore investing even more so that you also increase your exposure and amount of shares becomes even harder, causing you to more likely fail in doing so thereby lowering your overall returns.
Lastly investing with leverage increases volatility and drawdowns, causing higher stress levels impacting personal & family life and even life duration, simply not worth it.
There are some situations where margin loans are interesting, for example it allows you to stay invested while putting your cash to work somewhere else. In this case you do not use leverage, and you always make sure that this cash does not go down lower in value than the margin loan outstanding so that in case your stock goes down in value and a margin call happens, you simply send back the cash to your broker to not be margin called.
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https://www.youtube.com/watch?v=bjkl16oWEgw
Touched $7900 BTC / $210B total market cap twice past week, close enough to the first buy target at the "Golden Retrace" that was set at $7500 BTC / $200B. Raised crypto exposure from 29% to 34%, adding 5% by buying $ETH, correcting a mistake of the past to only hold $BCH from the big coins.
In digital networked markets often the winner takes all, so could certainly apply to crypto as well. Ethereum being the prime contender to become biggest but also dominate market by more than 50% for decades. Not being invested in it may be very costly in missed opportunity. On the other hand I am no fan of managing many coins and plan to invest them all into the diversified crypto fund of cyber.capital once Ethereum has pumped hard, so that I can focus on building the Bitcoin Cash economy.
Since we reached again 35%+ undervaluation to regression trendline and are therefore again in "Serious Undervaluation" I believe it is important to correct now the big mistakes one made, such as if you have invested too little into crypto, or did not invest in certain coin you believe in, do it now, as there is small chance it goes up from here, in fact I estimate a 33% chance, and you don't want to have years of regret.
However, I would recommend to do it modestly, for me that means 35% crypto allocation total, as next buy target is the one I feel most confident about will hit sooner or later: 55% undervaluation to the trendline, which would bring us to $160B total market cap if it happens over next month, or $6000 BTC, at which point I plan to go to majority crypto exposure again, likely continuing to build my BCH and ETH stash.
Link My Crypto Investment Plan:
https://docs.google.com/spreadsheets/d/1WSeePxcqVyZ__99I-dAcvMBZuEzTq1DX8KzstSKoS5c/edit?ouid=114287237714814559422&usp=sheets_home&ths=true
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https://www.youtube.com/watch?v=Iqw3hD502xM
Raised my bids for BCH as it looks more and more I missed the bottom, see Dobe4Ever: https://youtu.be/G5XMzd5QMzk?t=89 Better to realize early and not aim for lower low that is unlikely to happen, but instead aim for double bottom that still has good chance to happen when BTC bottoms somewhere middle 2019.
I start to like leverage in crypto, as offered by kraken for example, very much, but since it is very high risk since crypto is so volatile, and very expensive (40% per year interest rate!), might use only when odds for crypto to start go up strong, are very much in your favor, ie: at end of sideways movement when fiat prices are already considerably higher than bottom, but Trololo undervaluation is still reaching new all time highs and most long term technical indicators are turning bullish, likely somewhere early 2021.
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https://www.youtube.com/watch?v=AjXLKKGCmM0
Now that crypto market cap is 30% below Trololo's trendline we can say that undervaluation has started. Converted successfully my BCHSV into BCHABC thereby increasing my BCHABC stash with 45%. Think odds are high they will convert into BCH as they won the hash war. My fiat low ball orders for BCH have also started to reach now that we got a low of $250, so starting to load up the boat! Think odds are high low of most coins will be found only by middle 2019, for bitcoin BTC around $4500, but some coins will find their low earlier, others later. Since Bitcoin Cash has seen so much drama there is a chance we see the low already next few weeks, but if not I don't mind holding it for couple of years before real profits are shown.
Links:
https://twitter.com/Awe_andWonder/status/1053408719063707648
https://twitter.com/marcdemesel
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https://www.youtube.com/watch?v=c7XrLp6a1cY
Trololo is back with an update on where we are in the bull/bear cycle. As expected prices have remained below the trendline continuing to pull it down, causing trendline & fair value to still be at $380B half a year later. Current $230B means it's undervalued by 40%, not too shabby and definitely should have piece of your desired crypto exposure locked in at these valuations.
However, still high chance to go back to $150B Crypto Marketcap as undervaluation of not 40% but 60% to trendline for next 1.5y is likely. But would not dare to sell your quality coins to try to buy back cheaper as chance high in this second stage of early bull market some of them will pump hard vs Bitcoin Core and vs fiat never to see current valuations again, despite overall CMC to go down.
That does not count for many lower quality projets and especially Bitcoin Core which is highly overvalued from any angle you look at it, within crypto world it's market share likely still peaked half a year ago at 70%, but even vs fiat it's $160B valuation is unlikely to go into the trillions people hope for as it continues to be build out as a traditional bank with high costs, slow response, building services that add counterparty risk instead of reducing it (LN, Liquid), and therefore will likely lose the race for global adoption to it's competitors like Ethereum, Bitcoin Cash and likely several others. Also go into the difference between these two, Tezos & Chainlink.
Google sheets:
Trololo Trendline - Judging Valuation Using Historical Avg Prices & Growth
https://docs.google.com/spreadsheets/d/1ujXSmxad9WrNpkPhuJv_kcNvy6TtVMNTQZQt3lwYeA0/edit#gid=465266941
Crypto Investment Plan - Increasing Exposure as New Lows are Reached
https://docs.google.com/spreadsheets/d/1WSeePxcqVyZ__99I-dAcvMBZuEzTq1DX8KzstSKoS5c/edit#gid=43
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https://www.youtube.com/watch?v=DIxDZX2peUo