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  • 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.

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  • and the stock market that can potentially change your life.

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  • Thanks for watching and until next.

Bitcoin price dropped to 35K dollars at the time of this script.

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Massive Bitcoin Crash! 5 Reasons Why Bitcoin Will Crash

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    Summer posted on 2021/05/29
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