Crypto, EV, SPAC Bubble are related!Most Cryptocurrency believers justify their investment by bragging about how decentralized cryptocurrencies are.
But I believe it is very centralized because Elon Musk's tweets can cause a new wave in this market, any minute.
I believe Elon Musk and all other legendary investors like Ray Dalio, Carl Icahn, or whoever tweets or conduct interviews to support Bitcoin or the cryptocurrency market made a big miscalculation.
What is the most important miscalculation Cryptocurrency investors made?
Whenever any asset class reaches a high level of population penetration in a short timeframe, a bubble will be created.
As soon as this rate slows down a little the bubble will burst and the deflation process begins, and the cryptocurrency market is no exception..!
Cheatsheet to avoid the deflation phase of any bubble:
In most cases, average investors do not analyze data and invest based on their instinct and feeling of missing out (FOMO). But there is a simple trick that can save you and your investment just before any bubble burst!
What is that simple Trick???
Whenever you see an asset experience a parabolic price pattern and everyone talks about it, if you see it slows down a little it is the best time to sell..! Don't wait for the bearish trend, it will act so fast that makes you quadriplegic!
Sounds crazy, but works..!
Now I would like to teach Elon Musk who thinks he has "Diamond Hands" some physics..!
Diamonds can't withstand crushing pressures above 600 gigapascals (6 million atmospheres).
How this is related to the Cryptocurrency market???
Let's review the physics behind it:
Pressure is the force applied perpendicular to the surface of an object per unit area over which that force is distributed.
P= F / A
P: pressure
F: Force
A: Area
In physics, a force is any interaction that, when unopposed, will change the motion of an object. A force can cause an object with mass to change its velocity, i.e., to accelerate. Force can also be described intuitively as a push or a pull. A force has both magnitude and direction, making it a vector quantity
F = m a (kg·m/s2)
m: mass
a: acceleration
The force on an object is equal to the mass of the object multiplied by its acceleration: F=m*a.
The acceleration due to gravity is more or less assumed to be constant for surface-of-the-Earth calculations: a=g, so F=m*g.
In our study, the mean hand area in adult male was 146.50 cm2,
In our study, the mean hand area in adult males was 146.50 cm2. (Area)
Total Cryptocurrency Market Cap: at its max was 2.577 Trillion.
United States one-hundred-dollar bill = 1g
We have all the data we need to build a model (Fantasy):
Total Cryptocurrency Market Cap: at its max was 2.577 Trillion
2,577,000,000,000 = 25,770,000,000 United States one-hundred-dollar bills
United States one-hundred-dollar bill = 1g
2.577 T= 25.77 B 100$ USD = 25,770,000 kg
Value of g (m/s2) at Earth's surface 6.38 x 106 m =9.8
F = 25,770,000 * 9.8 = 252,546,000
Mean hand area in adult male was 146.50 cm2,
146.5+146.5 = 293 cm2, = 0.0293 m2 (estimated surface for hands of Elon Musk)
A: 0.0293 m2
P=252,546,000/0.0293= 8,619,317,406.143345 kg/m2
1 kg/m2 = 9.81 Pascals
Crypto currency market Bubble pressure just before burst: 84,555,503,754.26621 Pa
Diamonds can't withstand crushing pressures above 600 gigapascals (6 million atmospheres).
How many diamond hands (pairs) are needed to tolerate the pressure???
84,555,503,754.26621/600,000,000 = 140.9258395904437
This means we need almost 141 Elon Musk and we are 140 Elon Musk shy.
This false feeling of having "Diamonds hands" is related to the 56.1 million followers he has on Twitter.
To tolerate this level of pressure his diamond hands need 7.9 Billion followers..!
I believe the EV, SPACs, and crypto Frenzy in the past year directed by a team of 3 major players:
Elon Musk
Cathie Wood (Catherine Duddy Wood is the founder, CEO, and CIO of Ark Invest, an investment management firm.)
Chamath Palihapitiya (venture capitalist, engineer, SPAC sponsor, and the founder and CEO of Social Capital. Former Facebook's vice president of operations )
Fortunately, they are trapped in a self-created bubble, and 10 years from now you will see how trustworthy these people are in the financial world.
These people used the power of social media like Twitter and Youtube to their benefit and left many in tears..!
