People are hysterical about bitcoin, they’ll become more so when it crashes

One way to know, is when you say something negative about it, they lose their freakin’ minds. They automatically try to attack you personally or your credibility. 

I get the cryptocurrencies are hot, but so were tulips. At one point, tulips were so expensive (talking about the 1600’s here) that people were trading 12 acres of land for one stinkin’ tulip!!! 

And I’m sure a lot of people have made money in the bitcoin trade, but like flipping houses, most people never know when to stop.

They have to keep playing because the human mindset is to keep going until they get ROYALLY BURNED on it.

Furthermore to the point of flipping houses, success tends to beget greater risk. If you traded $10k of bitcoin and sold it for an additional $10k of profits, then the next time you trade it, you become more confident and more expecting of the same result. As a consequence, risk management becomes less important. Whether it pulls back or keeps rallying, you’ll find yourself getting back in, and instead of trading another $10k, you either do $20k now, or more than likely raise the ante and put together perhaps $50k on the bitcoin trade. 

Then you get days like yesterday, where bitcoin is running out of buyers to keep pushing it higher, and as a result the currency starts to crumble at its highs like we see today. And there is a good chance that your cost basis isn’t where the currency was hardly ever talked about prior to the big run, but instead you became important to you once everyone was talking about it and had their own positions to brag about. 

If nothing else, just pull up a chart and look at the price action in Bitcoin, and ask yourself whether you really want to be buying the currency when it is this elevated. 

I’ll save you the trouble and post the bitcoin chart for you below – Bitcoin Investment Trust (GBTC).