Hedging against crypto-bubble bursting

[ethersphere]

Crypto-market size is growing rapidly, but it's still far from the trillion dollar bubbles as we have seen in the housing market or during dotcom. I honestly believe cryptos are still in their infancy and has yet to obtain widespread mainstream adoption.

Currently, Ethereum or Bitcoin individually has less than 50b market cap. When the total market cap starts to overtake large tech companies (eg Google/Apple), only then I will start to worry and start placing hedges.

If a time comes when there's possibility of a large correction, would buying Gold and Silver be a good hedge? I believe when large funds start moving out, people would run to a safe asset (which traditionally has been Gold/Silver and precious metals). This would cause a spike in their prices and essentially create a hedge against falling crypto-currency prices.

Would really like to hear your thoughts on this, and if this is a good hedge or if there wouldn't be a bubble since cryptos will become a mainstream currency.

[Zadicar]

Crypto-market size is growing rapidly, but it's still far from the trillion dollar bubbles as we have seen in the housing market or during dotcom. I honestly believe cryptos are still in their infancy and has yet to obtain widespread mainstream adoption.

Currently, Ethereum or Bitcoin individually has less than 50b market cap. When the total market cap starts to overtake large tech companies (eg Google/Apple), only then I will start to worry and start placing hedges.

If a time comes when there's possibility of a large correction, would buying Gold and Silver be a good hedge? I believe when large funds start moving out, people would run to a safe asset (which traditionally has been Gold/Silver and precious metals). This would cause a spike in their prices and essentially create a hedge against falling crypto-currency prices.

Would really like to hear your thoughts on this, and if this is a good hedge or if there wouldn't be a bubble since cryptos will become a mainstream currency.

I do understand your point and your views on this cryptoworld and i would say theres no assurance that anytime soon that crypto will burst up and crash.I agree on the fact that the safest asset would be those precious metal but its not really right to think off that this cryptoworld would die anytime soon as long there are users of it, jumping on other assets cant really be avoided thats why we should not stick into one.

[lizardbtc]

Crypto-market size is growing rapidly, but it's still far from the trillion dollar bubbles as we have seen in the housing market or during dotcom. I honestly believe cryptos are still in their infancy and has yet to obtain widespread mainstream adoption.

Currently, Ethereum or Bitcoin individually has less than 50b market cap. When the total market cap starts to overtake large tech companies (eg Google/Apple), only then I will start to worry and start placing hedges.

If a time comes when there's possibility of a large correction, would buying Gold and Silver be a good hedge? I believe when large funds start moving out, people would run to a safe asset (which traditionally has been Gold/Silver and precious metals). This would cause a spike in their prices and essentially create a hedge against falling crypto-currency prices.

Would really like to hear your thoughts on this, and if this is a good hedge or if there wouldn't be a bubble since cryptos will become a mainstream currency.

It is unstable, you never know when it is gonna crush, specially these altcoins started to pump, every single one of them within the few past months. It may crush a bit harder if USAF don't go smooth, then I'd say we can see the price to even halves or more. But it should recover later on.

I will agree if something goes that much higher yeah gold and silver are still the best options to hold your wealth. I mean people are calling bitcoin to be gold but lets be honest bitcoin is just a number of digits electronically and it's price is not even near to stable since we are still in early phases and since people only see it to make profits we see that it can varies (price of it) like 400$ up and down....

Bubble might occur, it migh be even slightly starting to build up as we see that bitcoin and crypto currency are slowly starting to be shown to the ordinary people, when "ordinary" people come to join and pump the price then you will see that it can form a bubble and it might be over. But it is still a currency rather than a stock it could fall and dump hard but will recover at some price (hopefully).

Let's wait and see what will USAF do, but I don't believe that we are near the phase of dotcom bubble that happened, at least not yet.

[puremage111]

Crypto-market size is growing rapidly, but it's still far from the trillion dollar bubbles as we have seen in the housing market or during dotcom. I honestly believe cryptos are still in their infancy and has yet to obtain widespread mainstream adoption.

Currently, Ethereum or Bitcoin individually has less than 50b market cap. When the total market cap starts to overtake large tech companies (eg Google/Apple), only then I will start to worry and start placing hedges.

If a time comes when there's possibility of a large correction, would buying Gold and Silver be a good hedge? I believe when large funds start moving out, people would run to a safe asset (which traditionally has been Gold/Silver and precious metals). This would cause a spike in their prices and essentially create a hedge against falling crypto-currency prices.

Would really like to hear your thoughts on this, and if this is a good hedge or if there wouldn't be a bubble since cryptos will become a mainstream currency.

Hello OP, thanks for your long post

After reading, and i make a small research on Dotcom bubble

And in the 90s, huge amount of internet tech base company were started up and a lot fail and only the strong one like intel, cisco, oracle remain and continue to grow.

As for cryptocurrency, imo, i can't say that we are near to a bubble pop but i guess we are in a bubble.

The reason in this case for me is due to the inorganic price rise over time.

If we actually compare 2017, 2016 and 2015.

Despite a huge interest from the crowd tend to get into the cryptos in the 2017.
Yet, the growth in 2017 is just too massive. <50 Billion to 100Billion total marketcap within months is just too crazy for an industry.

Anyhow, even if the bubblepop, i think the top coin like Ethereum, NEM and etc will hold their stand because their use case is just too wide.

Among 700+ coin, BTC would be the first one to Pop. Majority is because despite we have tons of user who are interested in the cryptocurrency all over the world. People with minor knowledge only holds BTC. Therefore they dump BTC when bubble POP.


TL;DR : Bubble is forming, but not popping so soon. If Bubble Pop, BTC would be the best victim to be pop. Strong coin with development like ETH/NEM and etc will hold their stand.

[pedrobraz]

I wrote a post about my own view on the whole bubble thing. My point is very simple, if each one of us do not make their part, we can ruin the party. If we get enough bad examples out on the street we'll sure piss off a bunch of regulators and traditional investors, and that will likely limit the whole of crypto and blockchain economy's growth.