I have been inundated with requests for my thoughts on the latest Bitcoin™ “rocket-ride to the moon.” So for those wondering, here they are, as concise as possible and in conversation style…
Them: “Bitcoin has now more than doubled off its recent lows. Next stop – the moon! What do you think about that?!”
Me: That sounds just wonderful. But not to steal the thunder from this latest lift-off, however, I would just like to point out that if you double again from here – you’ll still not be back to break even from the last high. So, I would start with hoping all those left behind from the last “to the moon” ordeal could get back to even before “next stop the moon” don’t you think? But maybe that’s just me.
Them: “This latest move shows that Bitcoin is now a real place for safety, right? Right?!”
Me: Actually, I think not. And to prove that point consider this: Then why isn’t everyone running there (Bitcoin) instead of where most of this now “scared money” is running to? e.g., the Money Markets, which just so happens to now mean – onto the Fed’s balance sheet? That’s where your real answer lies.
Them: “If your premise has any validity, then prove it!”
Me: Actually, you need to reverse that, asking it of yours. But now since you’ve gone there here’s something to consider.
Is it not funny that Bitcoin suddenly gets attention (e.g.,inflows) only now since the money that is probably running scared, is money that had to be guaranteed via complete and utter collapse of fiduciary prowess (as well as awareness) by the very bank that is smack-dab in the epicenter of all that is Silicon Valley and crypto? i.e., the funds on “deposit” were backed with actual $dollars, not Bitcoin. And if it were not for the Fed allowing the FDIC and Treasury to pervert and adulterate deposit guarantees. Do you still believe “money” would be flowing into Bitcoin rather than out of it?
And if so…
I have some wonderful oceanfront property in Kentucky I’ll let you have cheap. Heck, I’ll even take your Bitcoin for it.
“Just trust me.”
© 2023 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.