The Bitcoin surge is continuing and the more and more headlines we see written, the more nervous I become.

Let’s think back to what happened last time around. If you recall, BTC had been trading just shy of $20,000 before it collapsed and over the preceding months/years fell back to sub-$4,000, before this latest resurgence.

While the mainstream media are again jumping all over Bitcoin as it tests $50,000 for the first time I continue to be a little less optimistic.

There are a few reasons for my bearish stance. The first is that we’ve seen it all before. We know that there is a fair bit of hype in Bitcoin and it is one of the main beneficiaries. The first time around was the retail investors, this time it’s the institutional players also along for the ride.

The second factor is the promise of regulation. At this stage, no coins are regulated and I highly doubt that Bitcoin would be the first. If the promise of regulation comes to fruition, I would rather have my funds in other crypto’s. See ISO 20022.

Finally, the Bitcoin mining process leaves a lot to be desired. Anecdotally, we continue to hear that Bitcoin mining, funds a lot of unsavoury practices. A huge portion of Bitcoin mining is based out of China and as we’ve learnt in the past few years, that is a concern. This is something that ties in with the prior point. If the crypto space was to become more regulated, what does that mean for Bitcoin’s mining operations and how does that impact it? For me, the outcome is not a good one.

While this is all simply opinion, I will not be joining in the current circus around Bitcoin and will be watching very closely to see how things play out over the coming months. As I’ve been saying, the charts look spectacular. But the tail risk is equally as big and this is the thing that we can’t ignore.