In the past year cryptocurrencies have been on a tear breaking through record highs, most notably is the oldest cryptocurrency - Bitcoin. Whilst the price has pulled back recently it is trading around all time high with the price not far off 1 trillion dollars. However, I believe that it is a massive bubble that will imminently burst just like it did in 2017. The issue is that it lacks any intrinsic value and so the bubble can deflate spectacularly. Even more worryingly is that Bitcoin can easily be lost if you forget your password meaning that you could lose a considerable amount of savings in that case. Furthermore, Bitcoin is susceptible to fraud and so that is another way in which Bitcoin can be taken out of your possession. All in all a staggering 20% of all Bitcoin is lost, not a good figure to be buying into. Moreover, it is unlikely that Bitcoin will mainstream despite El Salvador’s historic vote, as a result of the massive energy uses and the inefficiencies. STRONG SELL
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Has fallen a lot so is more attractive than previously, also the new financial climate favours Bitcoin. So I’m upgrading from strong sell, to sell/avoid, not something I would want to short or long right now.