Bitcoin is crashing today!
We are down 25%! Is this the beginning of the end? This is exactly what we’re going
to talk about today. Welcome come to Coffee with Markus! Yes! As you can see I’m back in my office. I’m back home in Austin, Texas. And it got cold! Hence the sweater here today. Yes, we have below freezing temperatures
which is very very unusual for us in Austin. Kids are out of school. Stores are closed I guess. I mean it is crazy.
Talk about crazy – Look at the markets right now.
Bitcoin down 20 to 25% today. Let’s jump over to the computer. Take a look at the chart
on what’s happening here. So here you see, right now as we are speaking,
Bitcoin today down 22%. Let’s take a look at the daily chart. Here is what happened today
as you can see, in freefall here. Not only Bitcoin but other crypto currencies as well. Let’s take a look at Etherium. Here’s Etherium. That’s another one that’s very very popular. And the Ripple which is
supposed to be the new Bitcoin. Take a look at Ripple here – down today by 37%! So what does it mean? Is this the end of the cryptocurrencies? What is happening? Let’s take a look at the news? Yes absolutely. There is some escalation in China, a crackdown. But you see, you will always find a reason
of why things are happening in hindsight. I have said it for a long time. For the past few weeks I’ve told you that this is a bubble that is going to crash. This is exactly what we are seeing here today. So let’s talk about a little bit more.
Because as you know, there’s still crypto currency – trading courses being launched
every single day. I believe yesterday, I got another e-mail about somebody
else launching a crypto currency trading course. So let me ask you this, how do you trade it? You cannot short the currency
unless you’re trading Bitcoin Futures. And in order to trade bitcoin futures – You need at least 50, 60, $70,000
in your account to trade this. So first of all, you need to understand that all of these wallets like Coinbase or whatever you’re using – “They are not a bank”.
On days like today, where the currencies are crashing – In order for you to sell,
there needs to be somebody else to buy it. Now I want to show you something
that might surprise you. I don’t know if you ever heard about Google Trends.
(I’m going back to the computer here) So let me quickly jump over, share here my screen here.
So there’s Google Trends where you see – the web searches for a certain search term. And here you see interest over time
in Bitcoin since January 2017. So as you can see,
yes it got heated in November, here in December. This is where everybody was
talking about Bitcoin. Everybody wanted to buy it. What happens if everybody wants to buy it? Of course prices are going up.
And this is what happened here. So here you see a one year chart of –
let’s go over to Bitcoin. This is a one year chart. And look at this. Yes of course, when the media is
hyping it up, it goes up! And right now it’s falling like a rock. Now if you go to Coinbase right now and try
to sell the cryptocurrency – you see there’s a partially degraded service
due to the high amount of traffic. You have to wait several days before you can cash out. Right? So how does this work when you are here,
when the cryptocurrency is in freefall, So is right now a good time to buy? I don’t think so. I think that we see a little bit more of a
correction and – that is healthy! This is what we see in every single market. Now don’t get me wrong. I’m not saying that
cryptocurrencies will go away. Not at all! I do believe that cryptocurrencies
are here to stay. I do believe that cryptocurrencies will be a means of payment, but very similar like PayPal or Venmo. Because it makes it easy to transfer
money into another country – if you don’t have the problem
with the with the exchange rate. So yes, cryptocurrencies are here to stay. Now can you trade cryptocurrencies? No! I don’t think so. I’m not personally trading it,
but you know what? If you think that you
should just buy some and hold. You see this is what I call the
“Spray and Pray” approach. Of course you can right now take $10,000,
buy several different cryptocurrencies – and hope that one explodes. But here’s the problem.
When it does – can you really cash out? So I’m wondering have you invested in any
of the cryptocurrency trading courses? If so what do these courses
tell you to do right now? Buy more, or what do they tell you,
on how you can sell? Because usually they tell you well you can
shift from one cryptocurrency into another. So what do you want to do
if you have Bitcoins right now? You want to exchange them into a Ripple
that got hurt even more today. Do you want to exchange it into it Etherium? There’s so many, there’s thousands of
cryptocurrencies that are coming out. Again, don’t get me wrong.
I’m not saying at all that cryptocurrencies are a scam. My opinion for the past few weeks – ever since I released this video about the
“Bitcoin Trading Course Scam” – My opinion is that these
cryptocurrency trading courses – those are a “scam”
because you cannot trade this. So this is what’s going on
in the cryptocurrency world. We will see what is happening here
over the next few days. Again it is a healthy correction
that we see here. Let’s go back to the charts. Here we go. So we do see a healthy correction. I mean this meteoric rise
was not sustainable at all. What goes up has to come down. But you see this is why
I personally prefer trading futures. I prefer trading stocks and options because
this is where I can play both sides of the market. And more importantly, when you make
some money you want to make sure to – realize the profits and that’s what you can easily
do with stocks, options and futures. I mean enlighten me. I do not know how you can easily realize profits
that you made in cryptocurrencies. Especially when converted back into dollars. That’s where you see that not only Coinbase,
I’m just using them as an example. Pretty much any wallet today will tell you. Oh yeah sorry. You can really convert it
into dollars right now. It might take several hours, several days.
Or – What I heard earlier that some of them
it takes a few weeks. And yes there are daily limits. So anyhow, keep this in mind when you’re investing
in these cryptocurrencies. And especially, keep it in mind
when you are trading them. Because if you have received a signal
to sell today or to take profits – it might have been really
tricky for you to do this. So my advice, what I do personally, I’m staying
away from cryptocurrencies until it all normalizes. And then yes, I will use them as
a means to to transfer money, in the same way as I like to use PayPal or Venmo. Because I think that this is the
main purpose of cryptocurrencies. And yes, all this talk that the government
cannot crack down on those – that they’re here to stay. As you can see today,
China is cracking down on them. You know that in November,
the U.S. government forced Coinbase – to hand over all the names and contact information
of everybody who has more than – $20,000 worth of cryptocurrencies. And yes, I also talked about it last week. You might have seen that the
U.S. Marshals are auctioning off – $54 million worth of
cryptocurrencies that they seized. So yes, the government does have access
to the cryptocurrencies. And yes, I don’t think that the
U.S. Marshals were able to auction it off – before it started crashing
as you can see here. So we’ll see if we see a quick bounce. If you believe that this is a good time to buy – Good for you, I’m staying away from it and
I will keep trading stocks options and futures. Because this is where I can get in and out
just like this whenever I want to. And yes I can both trade a
rising and falling market. So that’s my take on the cryptocurrencies
because I have several e-mails asking me – if I will ever offer a trading course on cryptocurrencies. And the answer is NO! And now you know why. And many people are also asking me what do
you think about cryptocurrencies. Do you have Bitcoin or any of the cryptocurrencies. No I do not! And now you know the reason behind it. Why that it is. Alright, fantastic. I hope that helps. And yes – Looking forward to all your comments. Make sure that you share this video
with somebody who needs to hear this message. And like it If you enjoy what you are hearing here.
Until next time, I’ll talk to you very soon.