Michael Burry: Bitcoin in a Speculative Bubble

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Michael Burry has recently descrived Bitcoin as being in a speculative bubble. He has argued that a significant amount of bitcoin trading is on margin / on leverage and that this causes the Bitcoin price to increase above its fundamental value. Implicitly, this also involves a lack of institutional investment in Bitcoin , which would otherwise foce Bitcoin towards its true value.

I also discuss other reasons for why Bitcoin might be trading too high. These include signficant volatility in the Bitcoin price (Which prevents Bitcoin from being a useful currency or a store of value), high transactions costs when trading Bitcoin, Bitcoin's lack of use or intrinsic value, and the ease with which Bitcoin could be substituted with myriad other cryptocurrencies.

#Bitcoin #MichaelBurry #Burry

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* Valuation: https://bit.ly/36nFfGp
* Options, Futures, and Derivatives: https://financialanalysis.teachable.com/p/options-futures-derivatives

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Crypto Trading
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