In this bubble context, while everyone just want to jump in the "Cryptotrain" blindly, understanding the global picture is crucial


Cryptocurrencies are for some people a giant opportunity. The opportunity to get rich quick without any required knowledge. This behavior is clearly dangerous as get rich quick without knowledge don't exist in the financial field. People should keep in mind that cryptos are virtual. Therefore, does a Bitcoin or a Litecoin has a real value ? I don't think so.

But these naive people who are investing on this new technology, for the most part of them, are just investing now... What a terrible timing ! Bubbles are really nice to trade as every traders would like to make such huge gains, but it is too late to invest on it ! Two weeks ago, bitcoin lost more than 45% ! With a 1:2 levergare, the loss for these traders would be 90%. 

So bitcoin, in my opinion, was a really good trade and not an investment, 2 years ago. Why not an investment ? Because bitcoin is 100% virtual so it doesn't have a real and tangible value. 

There is actually a lot of people who want to invest in the bitcoin. But some of them understood it was too late and are looking for other ways to invest on it. Hopefully for them, some companies were smart enough to understand these investors' needs thus they annouced the creation of their own cryptocurrency. 

Who are these companies ?  Usually traded companies like :

  • Kodak
  • World Poker Fund
  • NXT-ID
What does it means for the stock market ?

It means for these stocks that they will have a relative correlation with the bitcoin. When bitcoin's price will fall, these stocks will loose value and it could be terrible for them.

Bitcoin is like an octopus that encercles the markets with its tentacles. We can be sure that a lot more companies will do the same, what would lead to a big correlation between the entire stock market and the bitcoin.