Geometric Thinking Update
By Jim Fredrickson
I’ve been thinking about the almost insane fomo exhibited in the past several days in the BTC sphere. It dwarfs what Alan Greenspan called the “irrational exuberance” of the dotcom bubble. He used that term to describe the mindset that drove stock prices up hundreds of dollars, over a decade. BTC just went up many multiples of that in just a few hours!
What do you suppose Greenspan would say about that? In fact, we really should ask ourselves where such an ultra-extreme irrational exuberance came from.
Is it possible that the buying frenzy was engineered?
Have you noticed all the predictions in the press lately about BTC going to 20k, 50k, 100k, with all the forecasters saying BTC will reach these heights in the year 2020? Is it not possible that the stories/predictions were planted precisely to cultivate a buying frenzy? If so, it was very effective – surprisingly so, actually.
Let’s face it. It wouldn’t be hard to make novice BTC traders get fomo right? They get fomo as predictably as a teenage boy gets sexually aroused by sights at the beach on a hot summer day.
Why might someone purposely create such a fomo circus?
Might it be so that they could sell coins at the highest possible price?
Think about it… If YOU had the resources to create such a fomo feeding frenzy as we’ve seen of late, knowing that as a trader you could wildly profit from such a feeding frenzy, wouldn’t you? Of course you and I lack the resources to engineer such a circus. So who DOES have such resources???
One of the traders in the GT community recently noted that the alts have not taken the beating BTC did (as of late). This made me wonder why not? The answer, it seems to me, is that the alts are not listed on the futures exchanges, so there is no easy way for sharks and hedge funds to trade them. They only have incentive to breed fomo in markets they can trade.
Look at the picture above. Consider the character portrayed in that movie. He was the epitome of a wall street trader. Do you think he would have exploited the greed and ignorance of novice BTC traders to take all their money or not?
The stories in the press of late of BTC going to the moon in 2020 were, imho, a plot to take the money of thousands of novice BTC traders. The many wild predictions and forecasts were not an accident, nor were they random.
I must say, it was brilliant, in the same manner as the character played by Leo DiCaprio was brilliant. Pity the character was a heartless soul as well…
“… you and I lack the resources to engineer such a circus. So who DOES have such resources???”
This is not financial advice, just words of wisdom from someone who has seen it all over the past few decades. Do with it what you will. Happy Trading!