Bitcoin price dropped to 35K dollars at the time of this script.
Just a month ago, most people were thinking that the only way for bitcoin is to hit at
least 100K dollars.
But it seems like their plans have backfired and the price of bitcoin seems to keep plummeting.
So lets find out why the price of bitcoin is crashing?
How bad the crash is going to get?
And will it ever rise back?
Lets start with Elon Musk.
Recently he said Tesla will stop accepting bitcoin for car purchases, because of the
negative environmental impact of cryptocurrency mining.
So a few months ago, mining bitcoin didn't have any negative environmental impact.
Or maybe Elon musk didn't know how to mine bitcoin.
He purchased 1.5 billion dollars worth of bitcoin without knowing how to mine bitcoin.
Lets give him the benefit of the doubt.
He is building electric cars.
How could he possibly know that you need electricity to make these computers work to mine bitcoin?
How could he possibly know that most of the electricity in the US, for example, is generated
from fossil fuels?
Even Tesla cars are charged using electricity from fossil fuels.
That's not something an average person knows like Elon musk knows, especially since he
is are trying to help the world move to sustainable energy.
Don't get me wrong.
I am not trying to villainize Musk. he is a great guy! he deserves a lot of respect
for everything he is doing.
But let's be honest, that's pure pomp and dump!
He didn't do that because he cares about the environment.
Because the majority of electricity in the world and the US comes from fossil fuels.
That's a well-known fact.
And Elon Musk is not someone who doesn't know how we generate electricity.
He tweets bitcoin price is too high, bitcoin price falls, he buys a lot of bitcoin and
then says that Tesla will be accepting bitcoin as a form of currency, then bitcoin price
rises, he sells a share of his bitcoin.
Then he tweets something negative about bitcoin, like saying that it has a negative environmental
impact and bitcoin price falls.
In the previous video, I actually talked about that!
How Elon musk is playing with bitcoin price to profit Tesla.
The price of bitcoin dropped about 5% in the first minutes after Musk's announcement.
In fact, at the time of this script, the price is below 50K dollars.
But you know what else he has tweeted?
Do you want Tesla to accept Dogecoin?
He ditched bitcoin, and now he wants to pump Dogecoin.
The price of Dogecoin grew by over 30 percent in less than 24 hours after musks tweet.
If that's not hyped and a bubble, please explain to me what a bubble is.
Again, I want to make something clear.
I am not saying that crypto is bad, bitcoin is bad, or blockchain is bad.
All I am saying is that these coins are getting pomped, which means all that's waiting for
them at the end of the tunnel is a crash.
Here is a step-by-step plan on how to make money with Dogecoin - but here is a disclaimer
- this is not financial advice, and all that I am saying in this video is for education
and entertainment purposes.
So please do not do what I am saying in this video.
Dogecoin will keep rising as long as Musk keeps tweeting about it positively.
If he can move the price of bitcoin dramatically, the price of the largest cryptocurrency in
the world, he can destroy the price of Dogecoin in no time like you can destroy the like button.
That was smooth.
You didn't see that coming, right?
) Anyways.
Now isn't the best time to buy Dogecoin.
Just wait a little bit until everything cools down, or Elon musk stops tweeting about it,
or he will tweet something negatively, and the price of Dogecoin will plummet by 20,
30, or even 50 percent.
That's when you should be buying Dogecoin and then hope that in the coming weeks or
maybe months, Elon musk is going to tweet something positive about it and the price
will skyrocket again.
and that's when you sell, making 20, 30, or even 50 percent gain in such a short period
of time.
Again, do not do what I am saying in this video because this is all speculation.
But some enthusiasts may say: Tesla will start accepting Dogecoin! that means the number
of users who will use Dogecoin will grow, which means the price of Dogecoin will keep
rising.
If you believe that, then you are naive.
Didn't you see how he ditched bitcoin?
I mean, bitcoin is in a much better position to be used as a currency than any other crypto,
especially when that crypto started as a joke.
Don't you think that he is just playing with the Dogecoin.
Remember GameStop?
When a bunch of Reddit users came together and pomped GME and made millions while the
world biggest hedge funds lost over 13 billion dollars in the process? that turned the financial
system upside-down.
Since then, people have realized that if they come together, they have the power to pomp
any asset.
That's of course, great and exciting from one side, but whenever any asset is pumped,
there will be someone who is going to lose, so there are negative implications to it as
well.
You see, Dogecoin is not rising because it's naturally growing.
No one is using it as a currency.
You cant use something that volatile as a currency.
Some people might use it, but that's such a small number of people, and they mostly
do it for fun.
In fact, a lot of people are buying Dogecoin for fun since it's trending and it's all over
the news.
Why not try your luck?
Maybe you are going to buy it right before musk tweets something about it, and you are
going to make some quick money.
I believe most people are buying Dogecoin to make some quick cash.
No one is holding Dogecoin because they believe in that idea.
And for god's sake, don't tell me that Elon musk believes in that since he wants Tesla
to start accepting Dogecoin.
What is certain at the end of the day is - the bigger the bubble gets, the bigger the burst
is going to be at the end when everything crashes down.
Even Elon Musk is saying that it's a bubble.
He is literally telling everyone that do not invest the money you are not ready to lose.
What worries me the most is that this crash will most definitely hurt legit crypto companies
that are developing the technology.
Remember how the 2017 crash drove away many investors from everything that has any connection
to blockchain or crypto.
Well, if the next crash is going to get worst.
Then that will delay most of the crypto projects that are working on solving all crypto problems
to make the technology more useful and practical.
Dogecoin, the cryptocurrency that is AGAIN STARTED AS A JOKE at some point, was valued
at over 80 Billion dollars.
Yes, it worth more than some of the biggest companies in the world, such as Moderna that's
supplying the world with vaccines against covid, DELL technologies, Activision, and
many more.
It's even valued more than Coinbase, the first ever crypto company to go public.
Some people might not see it but what's happening now is no different from the 2008 crash, although
the 2008 crash was a housing crisis, not crypto.
Cryptos didn't exist back then.
The 2008 crash didn't start in 2008 or 2007.
The 2008 crash started back in 2002 when investors were looking for a place to invest their money.
They just got out of the dot com bubble.
The entire market was down.
No one was ready to invest in tech companies and real estate seemed like a great opportunity.
After each crisis or a recession, the economy enters the expansion period, where the economy
grows, and people tend to make more money.
So when the banks realized that there is such a high demand for homes in the market.
They gave mortgages to everyone and then took these mortgages, bundled them together, and
started selling them as securities to investors.
And the returns were astronomical.
Investors didn't care because everyone believes that worst-case scenario is that the banks
will sell these homes, and investors will at least get back their principles, especially
since home prices were rising.
They were guaranteed to make a profit.
But what happened at the end of the day is that the market wasn't regulated.
It kept growing too fast because it was based on speculation.
The banks would give mortgages to anyone because they would sell these mortgages in the forms
of securities to other institutions anyways.
These institutions didn't care because they would sell them to other investors.
Everyone knew that its a bubble, but no one wanted that bubble to explode in their hands,
so they just kept reselling them to each other, while growing the bubble even bigger.
In fact, some people thought that the bubble will just keep growing forever and it might
never burst.
But one beautiful day, it did burst, taking down with it the entire global economy.
If you lived through the 2008 crisis.
You know how bad it was.
People who are buying Dogecoin, SafeMoon or even bitcoin, know that it's a bubble, but
they don't care because they are just waiting for Musk's next tweet when bitcoin will jump
by 20 or 30 percent.
Then they will sell and cash out.
In the last crises, these securities were backed by homes.
In the current bubble, these securities are not even backed by homes.
It seems like a much more dangerous game.
But the positive side of it is that once it crashes, it will have a limited impact on
the housing market or even the stock market.
But only time will tell.
If you have enjoyed this video, you will most definitely enjoy this custom playlist that
I have created specifically for you that has our most popular videos on business, investing,
and the stock market that can potentially change your life.
And now give this video the thumbs up that it deserves, and make sure to subscribe if
you haven't done that yet.
Thanks for watching and until next.