Bitcoin was never an investment. It was always a speculative product based in the greater fool theory. If you tell a good story, there will always be a greater fool to buy it.
Well, the market is running out of fools.
Think about it. Every investment should have some intrinsic value.
- If you buy stocks your stock goes up or down depending on the expected profits of the company.
- If you buy bonds, you are expected to earn some interest.
- If you buy real estate, you hope to earn some rent money.
If you buy Bitcoin, you expect a greater fool to buy it from you because it produces nothing.
Think about it for a second. Bitcoin is an open source software that anyone can copy and create their own crypto currency. I can copy the code and create the Alain Coin. You can copy the code and create the You coin. And there are hundreds of people who have created worthless cryptocurrencies.
In a market where anyone can copy the code and create their own currency, why would one currency has more value than another one, other than clever marketing and a good story.
Bitcoin has gone from $68,789 US to $15,877 US in one year. That’s about -77%. Other crypto currencies are down 80% to 90%.
I have told readers of my blog, and personal friends to get out. Now I am sounding the alarm one more time. Get out before it goes down to zero.
I have seen friends taking out all their savings to speculate in Bitcoin. One of my friends even got a $35,000 in credit card debt to buy more bitcoin.
The intrinsic value of Bitcoin is not zero. It’s negative because of the pollution it creates, because it’s contributing to the destruction of the environment. Millions of dollars in electricity and equipment are needed in order to mine new coins. That’s electricity wasted in keeping thousands of computers running 20/7. In an inflationary environment when most people can’t afford electricity to heat their home, they have to compete with Bitcoin miners to buy the electricity that heats their homes.
Bitcoin is creating a big damage to the environment and the economy, it fulling inflation, and worse yet, it’s destroying the savings of thousands of naïve individuals.
Here is Warren Buffett telling us how he really feels about Cryptocurrencies.
That time Warren Buffett NAILED crypto cons:
— Compound248: FTX es Grande (@compound248) November 12, 2022
“It draws in a lot of CHARLATANS…who are trying to create various sorts of EXCHANGES, where people who are of less-than-stellar character…CLIP PEOPLE who are trying to get rich because their neighbor’s getting rich.”@SBF_FTX to a T pic.twitter.com/Ts4yXFx31N