Everyone has their own idea about what cryptos are or, what they are not. Ask 100 people and you’re more likely to get 100 different answers rather, than anything resembling consensus on one.
I’ve already thrown my thoughts into this quagmire and, so far, my on-the-record statements and projections well in advance, as well as in the face of relentless opposition via the mainstream business/financial media so-called “guru’s,” have proven far more correct than all the big names on the subject. Repeat: All.
I currently made another of what some might call, “a big call” at the beginning of the year and have not changed my mind or altered it one iota in the face of what many have argued is just, ” a stupid call and rationale for it.”
Maybe it is but, as I’ve said ad nauseam, “It’s a year end call I made on day one beginning this year as all the, once again, media-anointed “gurus” were making theirs.
As always, we shall see. For a year end call is just that – a year end call. So, there are going to be times where either side will look as if they’re winning. Sometimes one will appear to be winning “bigly.” However, I’ve been around long enough to know: it ain’t over – till it’s over. Early celebrations, as well as early resolutions to defeat, are meaningless. Again, we’ll see in December.
Now, that does not mean there are not things that one should pay attention to, that do have significant meaning and possible cross currents to this whole Bitcoin™ or “cryto” space, as it’s now known. And the following are a few pretty big ones from my purview, for it lays bare quite a bit for those that want to contemplate its possible signalling. And it is this…
If Bitcoin is, supposedly, “the best vehicle as to protect one against monetary debasement and inflation” as is told and sold. Then please explain to me why in the face of the highest, fastest pace for inflation print, in decades (i.e., since the 80’s), as reported via the CPI (consumer price index) Bitcoin not only did not go up proving the thesis or, at least bolstering it. But rather – tanked. And tanked “bigly?”
That’s not suppose to happen if the “gurus” prognostications are right. Period.
Next, speaking of “gurus.”
As this phenom was occurring, the one and only,
P.T. Barnum Elon Musk decided through his infinite wisdom concerning all things crypto, that Tesla would no longer accept Bitcoin as payment, rescinding his mere month or so old acceptance of it.
The reason? “Insane energy consumption.” I.e., What it takes in energy to mine it.
If you believe the above is the true reason, then all I’ll say is: I have some spectacular ocean front property in Kentucky I’ll let you have, cheap. But, hurry and call before it’s gone!
Oh, and you can probably forget about using his often touted favorite Dogecoin™, also. He already knows that’s a joke (it actually is just that) but Mr. Musk doesn’t have to worry about when the joke finally gets released on those that bought in to both the hype and the “coin” literally. He’s already flush with what’s known as, “real cash.”
However, the true believers in all that is Musk and crytos? Let’s just say when reality bites it’s going to feel more like Dogecoin’s icon has real teeth than something cyber. And just remember, Mr Musk losing a few $Million is not the same as the “disciples” armed with their stimulus checks. Just sayin’.
Then there’s the Ethereum™ debate. i.e., “But, Mark! You don’t get it, Ethereum is the new Bitcoin and it’s making a killing, regardless!”
Precisely my point that I’ve been arguing all along.
Do you know why Ethereum is going up and Bitcoin is going down? All my conjecture, of course, but stop to think about it for just one nanosecond. It’s just money flowing from one (aka, the profits gained from one hustle) into another (aka, into the next hustle).
As I’ve said repeatedly – there are no profit gains in size and scale going on in Bitcoin than one can’t achieve in playing options, penny stocks, pink slips, etc. via regular plain old stocks.
Unless you were at the inception of Bitcoin or any other crypto that was valued in fractions of a cent, to then skyrocket to whole cents, then dollars, and more. You’ve missed all the “big money” gains where hundreds if not thousands of percent gains are possible.
That’s why a joke such as Dogecoin suddenly went from a joke to a value worth $Billions. You’re watching in real time the madness of crowds when there’s a vehicle to express it and tabulate it.
This complete farce (and that is a true statement) is just the latest in a long line where everyone is so caught up in the “greater fool theory” that they believe they’ll be able to sell to another greater fool at a price higher than they paid – till they can’t. Then, it morphs from a comedy sketch on SNL to a horror show for those that literally bought in with cold-hard-cash.
There are now 100’s, some have even speculated 1000’s of cryptos available and being minted as to be the next Bitcoin, Ethereum, ____________(fill in your own here). In street parlance this used to be called a, “shell game.” Today? It’s called “investing.”
Can’t make this stuff up, is all I can say.
Oh wait, I should take that back, it seems they can, and it’s called, “Cryptos.”
Again, all I’m trying to demonstrate is what I outlined in the opening headline. e.g, “If it’s this – then why that?”
And, just for chuckles, I’ll leave you with this to also ponder…
Building more electric cars that need power to operate generated via fossil fueled electric producers using coal, oil, or natural gas, that are literally taxing the systems to the breaking point (see California, Mexico and others) is nothing to be concerned about when considering “insane energy usage.” Or, better yet, environmental issues.
Right, got it.
© 2021 Mark St.Cyr
Note: This is not trading or investing advice of any sort. This commentary is for “big picture” discussion purposes only. Please read, or re-read the “About This Site” page for any questions or clarifications.