Many years ago, when I was working inside the fintech space during the dotcom era, I was witness to the epic shake out of that sector. The company I was working for was in turn being supported by a specialist venture capital firm with whom we shared office space.
I had the benefit of a fly-on-the-wall perspective of the rapid failure of every single dot com that firm was backing in the space of a few months, other than the one I was working for. While we ended up being the proverbial diamond in the rough, purchased at a discount by a hedge fund, the experience demonstrated how an entire sector could end up looking like a pile of rubbish, yet rise to dominate the technology world within a decade. By 2011 the world looked very different.
FTX and Binance have been giving the crypto world something of a similar crisis of faith recently. But earlier this year I wrote how I believed Bitcoin looked undervalued, and would return from the ashes. It seems to be doing this faster than anticipated.
While The Armchair Trader was long Bitcoin into August, we exited the position because BTC breached our trailing stop loss limit on the short term picks list. Volatility in BTC has made it tough to keep it in that portfolio.
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