Catch up on, "Are We Buying The Dip?" a five part series presented by Caleb's Crypto Corner:
How Do We Make Predictions Using Financial Graphs?
Nobody knows anything about financial markets. That's a fact—time tested and true. As proof, just watch any show on CNBC where experts talk investing and compare their predictions with what actually happens. These guys just wake up in the morning, put on a suit, and start guessin. With that being said, there is still a barrier to entry if you want to be a lead correspondent for future crypto programming. Obviously, you don't have to have accurate predictions, but you do have to speak the language.
And I don't mean English, Australian, or Canadian — money doesn't discriminate based on where your from. Money only cares about if you can use fantastical terms of analogy.
Bears, bulls, angels, bubbles, unicorns: these are the words people who don't know what is going to happen use in order to describe our future.
But Caleb, how does this relate to our thesis question of "Are We Buying the Bitcoin Dip?"
OK, let's use an example where we pretend we're about to go on a network television show to talk about the future of bitcoin. The first thing we're going to do is use a graph as evidence.
This is Bitcoin over the last year. When we talk about it we might say, "Well Joe, we all know that BTC has demonstrated a princesses castle over the last four quarters."
Then we'd use a "but" statement to showcase our critical thinking. The ability to hold two contrasting thoughts at once and then distinguish which is more important is a key factor in acting smart.
"...BUT since the Coronavirus has infiltrated The United States, we are seeing a Mike & Sully."
It doesn't really matter what you say, as long as you say it with your forehead crinkled.
The only thing we have to predict the future of Bitcoin are examples from the past. And since what is happening right now with Coronavirus is unprecedented—ESPECIALLY as it relates to hidden internet coins that maybe one day we'll use to buy space weed—there is really nothing to go on. That might scare some folks, and if it does then this dip is probably not for you.
In summary, we use financial graphs to make predictions about the future pretty much however we want.
Stay tuned for Parts 4/5 and 5/5 which will conclude my thoughts, and ultimately answer my thesis question of "Are We Buying The Dip?"