I do not believe in money. Money do not exist, in my opinion. I believe in the air I can breath, in the sunshine, giving life to this planet, in water, in trees and so on. Money exist only in people’s minds, it’s an illusion. But at the same time, I believe in a fact that the majority of people I know believe in money. And it allows me to buy the products they produce and the services they can provide to me for something which is very abstractive to me.
I’m sincerely jealous to people who lived in ages, when the money was real. Made of metal: gold, silver, bronze, etc. It’s something hard, you can touch it, you can feel something heavy in your pocket, or a bag. Now people say a phrase: “I prefer hard cash”. I understand what they mean especially when it is compared to some electronic money (card, e-wallet, which are also illusions by the way). But the cash they talk about is not hard. It’s soft! it’s made of paper!! I guess it was very hard for people who got used for metal money to switch for paper money. I think, they needed couple of generations in order to get used for the new illusion.
Now we have cryptocurrencies. Wow. Money issued by someone else, not central banks. Does they have any difference comparing to other electronic money you usually send from one credit card to another? No. Same stuff. But the idea is great. I mean I can imagine myself waking up in a cryptobed one wonderful morning, going to a cryptoshower, wearing a cryptoclothes. Then I leave my cryptohouse, get into my cryptocar and drive it to my cryptooffice. Haha. Thanks God, they did not invent cryptofood and crytosex yet. But give them some time, you will see this stuff much sooner than you think.
OK, jokes apart. I open my trading terminal and see that people pay $9000 for one Bitcoin. Sorry, for one what? Ohh, a unique sequence of bits and bytes encrypted by very strong computer algorithm. I see, $9000 for algorithm. What was the price for it in January 2017? $900 approximately. Good. I’m asking myself one more question: what are fundamental reasons of such a price action? 1000% in 11 month it’s not a joke. - They say that it’s very easy and cheap to send this cryptocurrency abroad, it’s safe, secure and anonymous. Cool. Does it convince me to keep all of my free resources in this cryptostuff? No, thanks. I prefer hard cash.
I’m not a long term-investor. I’m a speculator. Short-term. The longest period I held one position was 5 weeks. I buy cheap and sell expensive. I open my positions with odds 80-20 and I risk my money with 30-70 ratio. Having 80-90% of profitable positions, I’m in the plus at the end of the week, month, year… I have an opportunity to sell an asset without having it. I can by an asset without physical supply. I’m interested in a Contract For Difference. I have a leverage 100:1 or more to boost my profits, without a need to put big amount of my own money to the market. This is how I make money, which I do not believe in.
I do not care about what asset should I trade on. When I see good odds for any currency to appreciate comparing to other currency, I just buy it. And vice versa. Some of top brokers, like Avatrade started to offer the possibility to trade Bitcoins and other cryptocurrencies. The leverage is not huge, just 20:1 so far, but anyway it’s better than 1:1 when it comes to buy-and-hold traditional strategy. Moreover, I have possibility to short cryptocurrencies and the markets are open 24/7. Someone will say: Lucas, are you crazy? Everyone buys Bitcoin and you are going to short it? - Yes I am. Look at the chart. The laws are the same, despite the rush and complete bullish sentiment. There are pullbacks on profit-taking or bad news disappointment reaction. The emotions are the same as well: it’s the fight between fear and greediness. You can see sell-offs in May, June, September and November. The only question I have about the next sell-off (pullback, retracement, call it however you want) - when is it going to happen. I have a suggestion that now BTCUSD bulls will try to get the prices to magnetic psychological rounded number. Notice, how it looks like: “$10000 for 1 Bitcoin”. I suggest a sell-off right after that. I think that such a seasonal factor like Christmas could also have an impact or a trigger. The idea is that lots of people who invested in Bitcoin during this year will want to take at least partial profit and turn it into something real. Christmas is ideal time for that, isn’t it?
Once the dust after the sell-off will settle down, I will buy it again...
Once the dust after the sell-off will settle down, I will buy it again...
Let the profit be with us!
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