Chicken Little makes a *Newtonian mistake?

Chicken Little has bought more cryptocurrencies. In doing so, he may be making a Newtonian mistake with an asterisk. Sir Isaac Newton was the smartest man alive in his era. He invested in the what became known as the South Sea Bubble, made some money and exited. However, as the bubble soared, Newton re-invested and lost a substantial sum -- more than his original profit.  

Chicken Little Dives back into Cryptocurrencies

Why re-enter Cryptocurrencies with Bitcoin at almost $20,000, after having sold closer to $10,000. 

Chicken Little originally bought last summer (read post) when bitcoin was around $2,000 because of two premises. 1) The phenomena is real, meaning there is intrinsic value, and 2) We had not reached the top in the market based on sentiment. 

The motivation for buying in again at higher prices remains the same. Chicken Little has lived through the tech bubble, the housing bubble, the gold boom and bust, and the genomics bubble. Based on a simple feel for the level of mania, this does not feel like the top. 

100% returns in a day are maniacal 

Make no mistake. Cryptocurrencies are a mania. For example, Litecoin more than doubled in under a day earlier this month. These sorts of price moves will drive an investor crazy with greed and fear. 

*** However, because one can never know where one is in a mania, and because Chicken Little is a chicken, Chicken Little has only invested part of his profits from the last foray into crypto. Thus, if bitcoin goes to zero, Chicken Little will remain a crypto winner (and a chicken). 

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