Stocks Vs Bitcoin - Is There A Winner?

Nov. 28, 2017 5:15 PM ETGBTC
Allan Harris profile picture
Allan Harris's Blog
613 Followers
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Long/Short Equity, Dynamic Trend Following, Option Tradnig

Contributor Since 2008

I have been a professional trader since 1994 when I gave up the practice of law to devote myself to trading full time. That twenty years and thousands of dollars in tution down the tubes, but that's OK, because trading for a living is about the best vocation you can have. You make money based on your own wits, not toiling for a paycheck from someone else. Even when I practiced law in Atlanta, Georgia I had my own shingle. In fact, the last paycheck I ever received was from delivering pizza's in a high school and even then, most of my earnings came from tips. But there are no hot tips in successful trading, only the creativity and discipline to be a successful stock trader. Be independent, be successful and learn from someone who has made his own way. Your life will never be the same. Hard sell over.

Summary

  • Bitcoin vs Stocks - which bubble bursts first?
  • The trend is your friend.
  • And the winner is: _______.

The stock market is making new highs on just about a daily basis. So is bitcoin and its ETF derivative, GBTC. As has been written here time and time again, this stock market bubble will eventually burst and there will be outstanding profit opportunities on the way down. But what about bitcoin? 

Stocks and cryptocurrencies seem totally unrelated. My use of the verb "seem" is because the concept of bitcoin (and digital currencies in general) is so new that it is folly to try and categorize it in the realm of more traditional securities.  In fact, GBTC notwithstanding, bitcoin is not a security at all. 

What happens to both in the event of a stock market decline? Since they went up together, maybe they go down together. But they are so different in substance there no evidence to support any correlation in price movement. It is just as likely, or even more likely that as stocks fall bitcoin soars. One thing we do know for certain is that no matter what direction for either stocks or bitcoin, our trend lines will follow. That means we will make money, maybe big, big money, on both sides of that equation. 

Who does that make the winner? 

Going forward into 2018, between the stock market and cryptocurrencies we are looking at the greatest trading opportunity I have seen in my lifetime. 




Disclosure: I am/we are long GBTC.

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.