It’s more than just the price that’s going parabolic. The bad fundamental news is pouring in just as fast. Here’s more…
When The WSJ is putting grandma trading Bitcoin on the front page, it can’t be good no matter how bullish one is:
FWIW “Grandma Buying” on the front page of @WSJ – no matter the financial instrument – is not bullish. pic.twitter.com/NnVYtFBs77
— Peter Atwater (@Peter_Atwater) November 30, 2017
Here’s the opening paragraph from the WSJ article:
Rita Scott’s grandson convinced her in mid-November to get in on the latest investing sensation and buy bitcoin. “I thought it was a big coin,” the 70-year-old said. “I didn’t even know what it was, a piece of coin? Why would I invest in a piece of coin?”
If that can’t be good, well, it get’s worse. The report goes on to say:
“Believe me, I didn’t have this much fun with T. Rowe Price,”, said Ms. Scott, and retired secretary and taxi driver, referring to her mutual fund investments.
This is the modern day equivalent of the “shoe shine boy” recommending stocks.
Every grandma I know has trouble updating their computers, or wondering why their iPad’s internet doesn’t work.
But now their not only “trading” Bitcoin but “having fun” doing it when they know nothing about it?
These are indications that this parabolic move is a about to go full supernova:
You see, just because tech is promising, it doesn’t mean one specific company has a future.
Case in point, the 3-D printer company “3-D Systems Corporation” by the ticker “DDD”:
Kind of looks like Bitcoin right?
Time will tell because the Bitcoin story hasn’t ended yet, it’s just in the climax scene. We don’t know how this movie ends. Nobody does, but it’s starting to get the feel of a horror movie.
Secondly, it is not the Treasury that is monitoring Bitcoin and cryptocurrency, but the Department of Homeland Security.
Here’s a question: Why are “currency” and “stores of value asset classes” not under the monitoring of, say the Treasury, the SEC, the Fed, or some other entity that has more to do with paper assets than Homeland Security?
The government is not just going to sit by and let the “decentralized”
currency “digital store of value” dominate the financial markets and make the US dollar look like monopoly money (even though it is monopoly money).
There is too much at stake and too much to lose.
The great wealth transfer isn’t into cryptocurrency.
The smart money isn’t going to let a bunch of millennials become the new wealth and power class.
People get rich slowly.
If everybody could get rich quickly, then everybody would. It doesn’t work that way.
Besides, if it sounds too easy, it is. There is no reward without risk, and there is no victory without pain.
Bitcoin is like a trick play in football, and everybody is chasing the person without the ball.
The great wealth transfer that so many discuss will be into gold & silver.
Bitcoin is just one of the last squanderings of wealth before the big move.
IMHO, they (which includes the gold cartel) have been letting Bitcoin rise in price because they needed to buy time building stockpiles of gold and silver coins to stem the tide of demand.
They will fail.
Back on track: Here’s more on the brief comment by the White House Press Secretary from business insider:
Press secretary Sarah Huckabee Sanders said the White House is monitoring cryptocurrencies like bitcoin.
“I know this is something that is being monitored by our team here,” Sanders said during a press conference on Thursday, answering a reporter’s question about whether the government would regulate cryptocurrencies.
Sanders said she didn’t have anything specific to share on the matter. Still, it was brought up by an advisor to President Trump recently.
“Tom Bossert, with the Homeland Security team, an advisor to the president, has brought this up in a meeting earlier this week,” she said.”I know this is something he is keeping an eye on.”
OK, I have three things.
This has nothing to do with Bitcoin, and everything to do with Bitcoin.
It’s about the “safe haven”, “store of value” and “digital gold” claims.
It’s especially important with all the talk of Zimbabwean’s saving in Bitcoin, if they even have any “savings”. I don’t know, but if the savings of Americans is any barometer, the answer would be “they do not have savings”.
If they did have a little bit of savings, the transaction costs would eat them up and negate saving in the first place.
So let’s just look at this final example when something reaches it’s intrinsic value of zero.
You see, here’s from the not too distant past and a stark reminder for what goes on in real crisis:
When push comes to shove, then blood, sweat and tears will be required for daily survival.
It will not be as simple as exchanging cryptocurrency.
When Bitcoin loses 20% in one day, has been around for less than 10 years, and might evaporate into thin air in exchanges or online wallets, just as easily as it came into existence, people will learn the hard way.
They always do.
– Half Dollar
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