It’s Official: Bitcoin Surpasses “Tulip Mania”, Is Now The Biggest Bubble In World History.
The Bitcoin pattern has all the hallmarks of a final terminal blowoff that will be followed by a catastrophic wipeout and probably soon. When that happens it will almost certainly be the greatest shorting opportunity in history, for some. The inexperienced get rich quick merchants who have been flocking in droves to Bitcoin in recent weeks will be vaporized.
https://www.youtube.com/watch?v=QuUJfYcn3V4
Marvin the Martian and the “Earth shattering kaboom” that is going to affect a lot of millennial investors for their first time.
Somewhere, in a lavishly appointed jail cell, Bernie Madoff is fuming. Fuming that he didn’t invent his own form of crypto-currency. Just imagine how many investors he could find at Temple … for THAT rate of return?
But it will be different this time!
I guess my age is showing. The whole Bitcoin mania is something I have a hard time understanding, and I’m usually pretty good about new tech. Block chains, mining farms? Really.
When it’s all virtual, it just doesn’t exist. Just like any video game, that is virtual, it onl6 exists as long as the machine is on. Yes, Madoff is very likely admiring this idea from the Crowbar Inn
Reminds me of a digital Bre-X
Ah, yes, Bre-X…..
That was yet another example of “If it’s good to be true, it probably is.” Sadly, every generation has to learn that hard lesson. Twenty years ago, it was a phony-baloney gold mine. Now it’s a “currency” that exists only in a computer.
During my years as an investor in the stock market, I’ve learned to avoid scams such as Bre-X and Bitcoin. If I can’t look at any numbers about it, I don’t invest in it. If I don’t understand what the company issuing shares in that investment’s doing, I don’t invest in it.
There’s no guarantee that I’m ever going to make money with a given investment, but being cautious usually meant that I didn’t lose as much as I did before.
If I’m desperate enough I could always eat a tulip bulb.
Although people have been known to be poisoned by tulip bulbs.
I remember the tech bubble and it is not a good memory. Haven’t been suckered since.
Even if Bitcoin weren’t just a digital bubble cult if it were to achieve widespread acceptance as a currency, it would be inherently defationary, very much more so than even the Gold Standard which was likely one of its biggest deficiencies (in the eyes of Keynesians). Getting people used to the idea that wages and prices will drop as productivity increases is not an easy sell. And then there is the issue of power failures where increasingly nothing works in civil society.
Usually by the time I hear about such investments, the quick and easy money have already been made and the people who made it got out while they could. After that, it’s pretty much a sucker’s game.
Here is an article from 2013 claiming that 47 people own almost 30% of all bitcoins and that 927 people own almost 50%. Back then the currency was worth $1,000. Recently it touched $15,000.
http://www.businessinsider.com/927-people-own-half-of-the-bitcoins-2013-12
The average young person believes all they have to do is download an app on their ”smart” phone and it will protect them from an economic crash.
See you all on the sunny side of 30k.
it is like everybody deciding that the roulette wheel in vegas is what everyone should invest in. Hey, i have been saying for decades that people are stupid. bit coin proves it in spades. the some people will actually be able to screw the fellow man out of money, well hey, who gives a shit. the virtual climate is another good one.
So how will the cashless society we are being driven toward work in the event of a power outage ?
Not sure what good tulips were, but I can see where bitcoin or other cryptos can work well to move massive amounts of money around. Tough to do with tulips.
most transactions are digital as well as our currencies.
Bitcoin might be in a bubble or it might not. With only 22 million of them, and apparently no more can be created, there’s potential for some insane valuations
Right you are……we are one solar storm or one EMP from digital armageddon.
In case any of you are considering investment in weed stocks, see B A Deplorable Sewer Rat’s comment.
The curve for weed stocks resembles the Bitcoin curve, and I can assure on and all that the quick and easy money was made in the initial sock offering. Smart money was in before the offering, and is now OUT. In fact, the smart money was in before the companies were even created. Government insiders had the first head’s up about this, because the whole thing is driven by government decisions. If you’re not an insider, you are a lamb to be fleeced.
I too am mystified by the Bitcoin phenomenon and believe this is tulip mania redux.
The major problem, it seems, is that people are equating the new — and I believe legitimate – blockchain technology with Bitcoin. Not the same thing!
Warren Buffet makes the key distinction:
“ Are checks worth a whole lot of money just because they can transmit money?.”
Another odd thing is that Mr. Hard Money Ron Paul himself is a Bitcoin fan.
One suspects that his enthusiasm is fueled by well-warranted central bank hatred.
Finally, it’s quite amusing to see that Bitcoin’s logo is a beautiful stylized gold coin.
Even the word ‘coin’ is a clever marketing deception as is the phrase ‘bitcoin mining’.
Mr Wolf, what a big cashless society you have there. The better to steal from you sucker!!!
I do expect Bitcoin to have a correction. However the long term viability of cryptocurrency will always be there. It has too many advantages over fiat and too many advantages over the current banking system:
– no restrictions on who can open an account (wallet)
– transactions cannot be reversed unlike our current system
– you can send any amount to any wallet in a matter of seconds
– transactions fees are low
– it is impossible to crash the system, too many nodes out there
– the ledger system is trustless
On and on…..
I forgot a pretty big one. The value cannot be debased as there’s no central bank. All the nodes agree to a fixed amount of bitcoin to the miners every 10 minutes. Every few years that amount halves. You cannot flood the market with bitcoin.
The problem is too many people are treating it as an investment and not a currency.
Well…my bed to basement ~~
Back to Marquette to Grand Rapids
And who do I complain to if something goes wrong with my transaction?
Is there a 1-800-BITCOIN number I can call?
Here’s an interesting take on the technology behind Bitcoin:
https://hackaday.com/2017/12/16/dont-get-caught-up-in-blockchain-hype/
I believe there was a place called Mt. Gox (or something like that) that would help make your Bitcoin problems disappear.
Err, sorry, I just checked and Mt. Gox. apparently just made people’s Bitcoin disappear. I don’t think it exists any more either so you can’t get it to make your excess Bitcoins disappear too.
https://www.cyberscoop.com/bitcoin-mt-gox-chainalysis-elliptic/
Wow! After reading that I would suggest they check the Clinton Foundation for the stolen bitcoins.
Admin can you please release my comment as I think it is helpful for those in here to understand.pleas and thank you.
Hmm, does everyone know that tulip mania was not a real thing? Time to read some actual history. It never happened.