Bitcoin above $3000. Is it too late to buy Cryptoassets?

NOTE: This post is NOT Buy or Sell advise. Cryptocurrencies are very volatile, are subject to legal / regulatory risk and also carry a risk of permanent capital destruction.

Bitcoin went past $3000 as “segregated witness” or Segwit, the latest version of its open source code is days from locking in to the nodes on its blockchain on August 8th, 2017.

Segwit aims to solve Bitcoin’s long standing scaling problem and serves as a positive fundamental trigger to its price. For stock investors, imagine capacity expansion without the capex. True to fashion, the market bought the rumor before the news and pushed the price above the last all time high of $3019 in June.

This move caught many technical analysts by surprise, as Bitcoin – honey badgerlike – continues to shrug off bad news and humiliate market oracles. I think what is most significant is that the long-term underlying bullish trend has been confirmed this week, which means the odds of a major Bitcoin “crash” have plummeted and a $5000 to $10,000 Bitcoin price is now in sight.

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Suprise! While the RSI and other momentum indicators suggested a correction the breakout in the simple moving average confirmed the direction of the trend.

So is it too late to enter? Bitcoin has no intrinsic value. The fair price is unknown. The market price is determined by demand and supply. It has gone up too much too fast. It’s in a bubble. All of this fear, uncertainty and doubt is legitimate but not in the ways one might think. Continue reading “Bitcoin above $3000. Is it too late to buy Cryptoassets?”

Linkfarm. Stuff I am Reading (Week of 7/21)

Inside the Mind of Jeff Bezos

JP Associates – the road to hell is paved with good intentions

Fundamental Analysis : Book Value

Investing in the Roads Sector : Problems Remain

Farmer Protests in MP and Soya Prices

Professor Sanjay Bakshi on Killer Jeans

On Cryptocurrencies:

What is it like to lose a large number of Bitcoins?

I was wrong about Ethereum

Four things to know about Bitcoin Bubbles

Inside the Rise and Fall of Ethereum

Reflections on the Best Blockchain Tweets Ever Written

I am not worried about Bitcoin but I am losing sleep over Ethereum

Bitcoin and Ethereum: The Puzzle of valuing Cryptocurrencies

Linkfarm: Stuff I am Reading (Week of 6/25)

How Elon Musk Plans to Conquer Mars

Kroger Krushed, Amazon Ascendent

How to Use Volume to Improve Your Trading

Elements of Enduring Companies

No India story here as 60% of Nifty earnings linked to global factors: Sanjeev Prasad

How genetics is settling the Aryan migration debate

Will airport in Hosur steal Bangalore’s thunder?

The bizarre antics of Infosys’ former hotshots just reached another level

One type of motivation may be key to success

India: Why its Attempt to Go Digital Will Fail

Taneja Aerospace: Speculation’s swift knife, whither will it turn?

This post is not buy/sell/hold advice. Please see the disclaimer at the end before reading further

  • Taneja Aerospace and Aviation Limited (TAAL) operates the Hosur Airstrip, 30 minutes from Electronic City Bengaluru
  • The airstrip is 2km long and can accomodate Boeing and Airbus class of narrow-body aircraft, with in-house hangar and repair facilities
  • The government under its low cost flying or UDAN (Uday Desh Ka Aam Nagrik) scheme recently airmarked TAAL’s Hosur Aerodome as a hub for low-cost domestic flights
  • Inspite of many triggers in place TAAL has historically failed to produce returns on assets making it a speculative grade stock

Continue reading “Taneja Aerospace: Speculation’s swift knife, whither will it turn?”

Linkfarm: Stuff I am reading (week of 6/3)

Where do real estate profits come from?

This economic phenomenon is making governments sick

The forgotten commodity that will outperform oil and natural gas

The best article on stock picking

The company with the world’s strongest moat

Fintech will slaughter Indian banks

A beginners guide to intermittent fasting

How social darwinism made modern china

The great land rush in ethiopia

Self Sustainable Growth Rate: a measure of Inherent Growth Potential of a Company

Brazil’s scandal hits soyabean prices