The Problem With Bitcoin

The only person who would be willing to buy my Bitcoin is somebody who believes he can also sell it to somebody else at a higher price.

So you always need the idea that there's always gonna be somebody else willing to buy my asset at a higher price than I paid because there's no other use for it. You can't do any thing with it, it's not going to generate any income if it just sits there, you can't use it in industry, there's no actual function that it serves other than my ability to sell it to somebody else.

Bitcoin Moved Through Another Milestone

Bitcoin has moved through another milestone over the weekend we were trading above 6,000 I think we got close to 6,200 not sure if we got above it as there are so many different exchanges that's hard for me to keep track. I know as I'm recording now we're at about 5,000 we did get back down to almost 5600 during the day so again the volatility continues but the direction is clearly up. I would put the support now around 5,000 that used to be resistance so at this point 5,000 or so or maybe just below is the support in the market right now. 

There was some selling intraday and then you had billionaire Saudi Prince Alwaleed talking on CNBC and they were asking the guy a lot of questions about a lot of things and obviously you know he's pretty influential because he oversees an enormous amount of money, you've got all the kingdoms oil revenues coming in and so he's got a lot of money to invest and he has a huge portfolio, he is a big shareholder, he owns a lot of US stocks as well and he was asked about Bitcoin and cryptocurrencies.

The Saudi Prince was very negative about Bitcoin. He said it was an Enron in the making that he does not understand it, he thinks it's gonna crash and I think what's interesting though about the Saudi Prince`s criticism is what he points out as being the problems are exactly the benefits that the people who are buying see in the currency. I mean if at this point there's lots of people who are just buying it because it's going up so they don't really have any other allegiance to other than the fact that it's going up.

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