How can we profit from BTC bubble

The degree and velocity of the price increase. "Bitcoin hit $11,343 last week, according to coindesk.com, blowing through the $10,000 level early in the morning before falling through the day and hitting $9,926 as of the publication of this column. The cryptocurrency began the year at $968.In contrast, "during the 1980 gold bubble, the price of the yellow metal soared from $559.50 on January 2, 1980, to $850 an ounce on January 21. In comparison with bitcoin, the gold mania was a piker."

Derivatives Markets Are Getting into Bitcoin. "During the tulip mania, traders developed primitive forward options trading, so they could trade bulbs outside the planting season. LedgerX, an institutional trading platform, began trading bitcoin options last month, and the CBOE and the Chicago Mercantile Exchange are planning bitcoin options."

More investor funds are coming.  Wall Street just loves new products they can sell to generate more fees and commissions. In an era in which fund fees have dropped to the basement, they stand to make billions from new vehicles.

Scarcity is Strong Selling Point.  I don't know what it is, but whenever the phrase "limited quantities" is uttered, people go crazy. It doesn't matter if it's beanie babies or a Leonardo painting. We think rare things should carry the highest price tags. "One thing that drives prices up is rarity. Bitcoins are limited to a total issuance of about 21 million coins.

Source: Reuters

Trader Bozhidar Arabadzhiev

Original post: Four Ways A Bitcoin Bubble Plays Out

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