Bitcoin Week: to the Moon and Back

So hi everyone, I am Molly Jane and in today’s
video we are talking about Bitcoin’s price this week, from its meteoric rise during the
past weekend and the beginning of the week, when it passed 8K and even reached $8,200
to the today’s fall back to 7K. Here with us are Erik Finman,
Naeem Aslam and Anthony Pompliano. And my first question is to you Naeem. Despite today’s correction,
do you think the crypto winter is over and what should investors do now? What I can say is that perhaps spring is here
and crypto winter has ended. And the reason that I’m saying is because
we have touched a critical level of $8,000. This is gonna open the door to $10,000 and
perhaps more, but what I’d really like to see the price to do is to consolidate from
here onwards with the base of $5,000 as a support level and then price to consolidate
between $10,000 to $5,000. So if we kind of establish that consolidation
mode, because what we don’t want to see is a huge demand for volatility which we have
experienced in the last few weeks. So in terms of Bitcoin’s price spiking do
you think that was due to any one thing or a set of circumstances or even possibly market
manipulation, or do you think that was just a naturally occurring phenomenon? So many people can say pinpoints several different
things whether they were market rumors in the market or whether it was a Consenus effect. Talking about Consensus I’m going to write
an article in a few days on Forbes on the title of the article is going to be
“more suits less costumes”. So that means more enterprises have entered
into this space, real projects are coming into this space to resolve the custody problem,
the liquidity problem. The real examples are coming. Companies like
Deloitte, IBM, Tata Consultancy we have seen the huge dominance in the Consensus event. So that is one aspect. Number two, is the momentum was already there. The fundamentals are starting to change. When I’m speaking of fundamentals I’m talking
about more positive news coming out from a from a major enterprises coming and adopting
the blockchain technology. If they are adopting blockchain technology
it doesn’t have a direct impact on Bitcoin, but it gives a tailwind effect
to Bitcoin price and I think that is why we are moving and that’s what
is driving the prices higher. Erik, you once claimed that Bitcoin was dead. And we actually discussed it with you last
December when Bitcoin was falling to 3K. This week we saw Bitcoin rising to 8K again. So do you still think that Bitcoin is dead? Like I said before in that original article
where I said Bitcoin is dead, I think the original article said Bitcoin
is long term dead. So I’d say that’s the most accurate thing
where I’d say Bitcoin. There is scalability problem
and there’s all fragmentation. And then again the most important thing, I
think, is the easy onramps at this point as a community it doesn’t fix those problems. I still agree with that statement that Bitcoin
is long term dead and I don’t really see anybody on the outside. Maybe on scalability, but there’s still the
infighting, and I think the easy on ramp work on these problems. So yeah, if those problems don’t get fixed,
I still believe Bitcoin is long term dead. Do you think that we are entering another
bull run or will the price go back and stagnate there? I think, if not now, I think at some point,
and I’ve said this before, I think Bitcoin will have at least one more bull run I think. I think it’ll be all time highs at least one
more time, and maybe that’s not now, I think it’ll be at some point. I mean, I’ve said in the past I think bitcoin
has a lot of long term problems, that I think need to be addressed. And I think if not, if they’re not addressed
now, then it’s kind of long term dead. But I do think that we’ll have
one more big swing at least before it kind of disappears. We’re seeing this market correction today. What do you think has caused it? Yeah, so we definitely know what caused the
market correction. There was an algorithmically driven trade
of about $3,400-$3,600 Bitcoin on Bitstamp last night, essentially through the order
book, right. And so, if you think about this, market infrastructure
is still early, still somewhat untested. So whatever somebody is issuing these orders
via an API, a technology between the person who is issuing the order
and the actual order book. It looks like there are some errors there
which caused the tip of the order book very quickly, but I think that ultimately this
won’t matter in the grand scheme of things and it’ll be forgotten after a week or so. But it’s kind of interesting. I’ve read online that some people are saying
that maybe a trader accidentally put in an order to sell Bitcoin at $6,200 instead of
$8,200 and now it’s left, what seems to be, permanent market damage. Yeah, it’s definitely is possible, it’s a
little hard to understand. You have somebody selling like that. Where exactly are they? What was their intention? Did they try to type $8,200
and they fat fingered it? Did they try to manipulate the market, right? Do they understand enough of the market to
know that if they do this, it will drag the price down. I don’t think that we really know, but what
we do know is what happened and big question is why. I tend to spend less time worried about the
why and just now, that we understand what happened, let’s move forward
and forget about it. So what do you think investors should do now
in this situation? Nothing different. I look at Bitcoin as it’s a non-correlated
a special return asset. I think every investor should exposure to
it, the size of their portfolios depending on the situation, but I don’t think that kind
of the day to day price movements are really going to change the investment thesis
or the investment case. And so if you like Bitcoin at $3,000 and you
liked it at $8,000 then you probably should like it anywhere in between. I don’t think it can bring any change
to investors’ sentiment here. So do you think that this correction is happening
right now that is serious? Not at all, I think it’s a natural thing. Remember when Bitcoin was up 120% on the year,
right, so it had its parabolic move from the start of the year around $3,700 on January
1st and it moved all the way up to over $8,000. So it’s up 120%, to have a 10% to 15% drawdown
should be expected. Things don’t go up into the right forever. So, again, it’s not that big of a deal, and even if they
drew down further – I still wouldn’t be worried. So we saw it go down to $6,000 or $5,500. I don’t think it’s cause for concern. So my last question has to do with the volatility. Do you think that this is Bitcoin entering
a period of more volatility again or do you think, like you said, it’s going to crack
down and then even out, what are your thoughts on the volatility question? Look, 120% of the upside in 4 or 5 months
in that parabolic move that’s nice volatility as well. We just thought we forget that the volatility
is going in the direction of those that are long, but volatility goes both ways, right. So you can see volatility upside,
volatility on the downside. Bitcoin is a volatile asset, right, but that
also means that it’s asymmetric. So in order to have large gains you need volatility. It’s not possible for something to stay stable,
and then you too make a lot of money by going up or down in value or losing a lot of money. So that volatility,
I don’t see that as a negative. In 2000 to 2005 and even in the late 90s people
were talking about the volatility of technology stocks. Just the idea that all
the technology stocks are super volatile. Well, those led to some of
the best returning stocks. And so I think that volatility is not necessarily
a bad thing, especially if the volatility continues to set higher lows every year, and
it moves over a long period of time and you have a little time preference. So I think a lot of people in Bitcoin, other
than the traders, they’re looking at this as a long term investment and they’re realizing
that it has certain characteristics or qualities that other assets don’t have,
and so volatility is positive. We were here today with Erik Finman, known
as a teenage bitcoin millionaire, Naeem Aslam, Chief Markets officer at ThinkMarkets and
Anthony Pompliano, CEO at Morgan Creek Digital. On Monday we are doing a markets video with
Mati Greenspan – if you want us to ask him some specific questions – post them in the
comments and we will ask Mati ourselves! This episode is sponsored by Trade Santa. Trade Santa is a cloud-based trading bot. Set it up in less than 2 minutes, trade multiple
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14 thoughts on “Bitcoin Week: to the Moon and Back

  1. Please, never have Erik Finman on the show again?? He's 'just' smart enough to say "I think BTC may see 'at least' one more bull run," to cover his previous claim that BTC is Dead. Does he even have pubic hair yet?

  2. BITCOIN IS LONG TERM DEAD!! That has got to be the stupidist statement I've ever heard. My prediction is… He'll be LONG TERM dead well before BTC ever is. Some people in this space, who should know better, STILL don't get it.

  3. By interviewing and valuing Eric Finman opinion who is just some kid who got lucky with mum/dads pocket money you insult every serious person in the crypto space.

  4. Why the fk is Erik Finman on here. Just kid that got lucky with no actual investing skills or Bitcoin Knowledge.

  5. #ErikFinmam, go back to primary school, and then get a proper job, please. (Easy) Money has never given anybody wisdom.

  6. You've lost credibility having this snotey nosed kid on here. He gambled & won. BIG deal. Now u treat him as if he's a World expert?! SERIOUSLY?

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