Early this morning I posted my thoughts on what was transpiring in the crypto-mania space. I started the article with the following. To wit:
“Over the last few months it’s been hard to have a conversation without someone asking me for my take on the entire BitCoin™ phenomena. My standard response has been, “I believe it all to be a mania, currently. But the underlying technology known as blockchain…blah, blah, blah.”
Well, it seems it wasn’t just me experiencing this same frustration, for one of my colleagues sent me the following (near laughing hysterically) from none other than Nouriel Roubini, commenting on the same about an hour ago. Again, to wit:
Over the last few months it’s been hard to have a conversation without someone asking me for my take on the entire BitCoin™ phenomena. My standard response has been, “I believe it all to be a mania, currently. But the underlying technology known as blockchain may have something to offer further down the road, because it works on the distributed ledger principle. After-all, the IMF itself has been issuing working or white papers on the subject for years. We’ll just have to wait and see how this all shakes out. But as far as the current ‘crypto-mania’ thing? Let’s just say – color me skeptical.”
This was usually met with either disbelief that I could say such a thing, or the usual, something along the lines of, “You just don’t get it!” type of dismissal.
I was also reminded near infinitum, precisely and usually verbatim what James Altucher the now self promoting, wildly proclaimed Bitcoin guru retirement strategist had used as a response to any naysayers. So much so I usually would abruptly end the “conversation” midstream and ask, “Then why are you asking me anything if he’s the expert?”
Again, it’s one thing to ask me for my opinion and dismiss it. That’s perfectly acceptable. It’s quite another to engage me in so-called conversation, then try to use any of my arguments as some type of foil to jujitsu into providing one responses, which are obvious to the other, they don’t truly understand what they’re retorting, other than regurgitating someone else’s words. The only thing worse is their believing it’s making one seem as if they’re the “informed” one.
Parrots can do similar – but last I heard, they’re not earning money for those insights. They’re put in cages and stared at for amusement, not practical or pragmatic advice. And personally I’m not taking on any more pets. Whether I can afford them or not.
So why do I even bring any of this up? Good question – and it is this…
In case you’re just waking up and you went to bed thinking of all the wonderful cars, yachts, McMansions and so forth you were going to purchase with your newly minted Bitcoins or other crypto. Well, lets just use as they say in Silicon Valley a “picture” to say what needs to be understood. Ready?
The above chart is Bitcoin priced in $Dollars as in what one bitcoin was worth. Remeber when one “coin” was worth as much as $20.000.00? Oh that was oh soooo long ago. Like last week.
As of today? Well the above chart represents the current price as of about 9:00AM ET. The bars represent daily increments. And if you click on the above chart, what you read is correct. As of this writing Bitcoin is down nearly $5000.00 overnight. So if you bought in yesterday at around $16000.00 and thought you were a BTFD genius? You’re not only not up, but worse, you’re not just down – you’re way, way, way (did I say way?) down.
The only thing more scary than the chart above is this:
The day is still quite young.
And for those who believe I’m unfairly pointing fingers at Mr. Altucher. As I’ve stated many times, I have nothing against Mr. Altucher, I’ve just called for caution about what he’s been professing of late. Nothing more. And for those who doubt my “self promoting” argument. Here’s just two screenshots of ads that have been near impossible to ignore and have been to my eye – everywhere. To wit:
(Screenshots of web ads Non-working)
These are those moments when “Where can I get me a Bentley®?” now begin to morph into something like “Can I list a Bentley on Craig’s List™?