To this question posed by Morgan Linton, Joseph Peterson has shared his response:
"What drove growth in prices? Attracting more and more buyers. Why did they buy? They saw rising prices. What can they do to keep prices rising after they buy? Attract more buyers! That’s why I’ve described the Chinese surge as an unintentional, crowd-sourced pyramid scheme. Sooner or later, that house of cards always collapses.
Much of the rapid appreciation we saw in LLLL.com CHIPs during 2015 was driven by buyers who saw fast growth and wanted to get in on the action, riding the price spike while it lasted. That feeding frenzy, fueled by lots of publicity and buzz (as well as some outright hype), caused the rate of appreciation to accelerate.
As a result of that unsustainable rate of acceleration, we’d expect prices to overshoot real value … like a bicycle that goes fast enough to jump off a bump, go airborne, and reach a high peak. We had a few months of hang time. But what goes up must come down."
The complete response may be found in the comment in this article
What are your views on this?
"What drove growth in prices? Attracting more and more buyers. Why did they buy? They saw rising prices. What can they do to keep prices rising after they buy? Attract more buyers! That’s why I’ve described the Chinese surge as an unintentional, crowd-sourced pyramid scheme. Sooner or later, that house of cards always collapses.
Much of the rapid appreciation we saw in LLLL.com CHIPs during 2015 was driven by buyers who saw fast growth and wanted to get in on the action, riding the price spike while it lasted. That feeding frenzy, fueled by lots of publicity and buzz (as well as some outright hype), caused the rate of appreciation to accelerate.
As a result of that unsustainable rate of acceleration, we’d expect prices to overshoot real value … like a bicycle that goes fast enough to jump off a bump, go airborne, and reach a high peak. We had a few months of hang time. But what goes up must come down."
The complete response may be found in the comment in this article
What are your views on this?
