Short Term Trading Weekend Lounge : 20 -22 Jan, page-110

Re: Bitcoin discussion and chart TA. Hmm. I'm happy to be corrected on my assumptions on this one: I don't think you can apply traditional share-trading logic to Bitcoin. It's just not going to follow the same patterns or rules.

For one, it's not 'traded' in the same fashion. Secondly, as a currency, it's subject to an interesting and diverse array of economic forces primarily because it's available everywhere to everyone; this changes the trading dynamic markedly. And thirdly, it's a disruptive innovation that has no equal (that is as popular, or is exchanged in the same volume). Alternatives like Ethereum/Ether are gaining some traction, however they too are facing their own teething problems with implementation and security.

It's going to be an interesting year for crypto currency and blockchain in general. We know historically, when corruption and oppression rise, that economic volatility increases. And this breeds fear. Perhaps in days gone by, this meant that people would 'hide their money under the bed' or buy gold. And nowadays? Well, a chunk of people are still going to do that, but perhaps the tide is turning. Perhaps that same volatility will increase people's desire to experiment, and that experimentation will lead them to alternatives such as Bitcoin.

Definitely something to keep your eye on this year. Why? Well all of your ASX trades may soon be pushed through blockchain (!) Quite the change, for something that is difficult to understand and may be hard to monetize. Well, that makes what you are thinking right now completely correct: Bitcoin just doesn't make any cents.