While I am somewhat bummed that I did not jump into the Crypto market and make a hefty return, another part me is not sorry. I am not, nor pretend to be, an expert on cryptos or blockchain technology. What little I do know about the technology I think it will revolutionize the way commerce is performed as we know it. But in terms of the actual crypto ‘currency’, I am not too sure about all of the ‘coins’ and the so called wealth it is generating. For me, red flares are going up everywhere for several reasons. One of them, to me, is it reminds me of the dot.com bubble all over again. The arguments for cryptos are basically the same that were used for the dot.com:
- it is a new paradigm,
- it is new technology and therefore the old fundamentals do not apply,
- there is no down side here,
- it is going to change the world, to name a few.
The other thing that is somewhat unsettling is now I see advertisements on youtube another sites for crypto IRA, crypto mining (and you can join!!), new crypto exchanges, crypto wallets, crypto funds and markets. I also think Wall Street started some sort of crypto futures, or whatever. If you remember the housing bubble, advertisements were everywhere about all things Real Estate such as house flipping, rental properties (and make a fortune), and of course every one of the advertisers have unique system that you use to make your millions (allegedly, anyway) but you just had to pay them a fee for it. To me, the advertising is a barometer of where we are in the cycle of things. We are in the downward part of that cycle. Back before the last housing bubble pop, the real estate advertising was in over drive before the bottom dropped out. Of course, the same sort advertising craziness was going on with the dot com bubble as well, where EVERYONE had to get a web site.
The other thing about the crypto market currently, is the mania. I am sure you have heard about the pole dancer who now is some crypto expert. Or the family that sold everything (I think they are living in a tent-seriously, no sarcasm) to buy bitcoin-unfortunately that is not the only example of someone selling everything to buy the hope of a higher return in bitcoin. People are taking second mortgages to buy bitcoin. Even many of the ‘experts’ like Andy Hoffman are jumping into bitcoin as well as other well known internet/youtube personalities are diving into the bitcoin. Selling their metals and buying bitcoins….after saying metals were the best buy/investment. One of the early adopters is Bix Weir. He, for a time, was a big silver guy and did talk about cryptos. But, it seems to me, he is almost obsessed with cryptos now. I noticed this change in 2016-2017 where he would promote silver on his podcasts and tell you how rare it is due to mines closing (due to the artificially low price) and the uses silver had in today’s industries with new uses coming out everyday. He is largely correct with that assessment. But, when he wanted to push cryptos, he would say there is plenty of silver, they can even mine it from asteroids at some point yadda yadda yadda. Over time, he talked more and more about cryptos…got the impression that it was a hard sell in a soft way. I also noticed that a large percentage of the comments in his podcasts on youtube were calling him out on those points. He has since disabled his comment section on his podcasts. I do not know if that was the reason or not, but I did find it interesting that he no longer has comments on his podcasts. To be fair, I can only imagine the kind of crap he got in his comment section. Rogue Money got on board with the crypto craze as well. In addition to several others which I will not list, but my point is now these guys are extremely smug about it. The arrogance and the attitude along with the condescending tone towards those who are not in cryptos. Hmmm. Okay. I do remember the same type of arrogance and smugness with the dot com debacle. Those who came out against cryptos such as Lynnette Zang (AC chain) and Chris Duane over at TruthNeverTold were excoriated by the crypto gang. Instead of listening and debating the points the of ‘the unbelievers’ they were called names by the cyptos advocates, just like the liberals or SJWs or the climate change idiots. This was another flare that went up in my head. The same type of behavior occurred with the dot.com ‘investors’ towards those who were not jumping in with both feet. However, many of the dot com millionaires got wiped out. Why? A large percentage of their wealth was paper…in other words, their wealth was derived from the stock price rather than the actual assets. They did not see the signs of what was happening due to their own hubris. Are we seeing a repeat of this? Crypto wealth is essentially digits on a screen, nothing more.
Something Possibly More Sinister
The other thing that has me very concerned that no one who is on board with cryptos has mentioned or refused to acknowledge at this point is the government, specifically the IRS. The IRS just recently won a court case against Coinbase, the largest crypto wallet exchange. I have emailed Bix Weir about various things in the past and he always answered me in short order. I wrote an email to Bix asking him about the IRS and what he thought in regards to the IRS going after the taxes on the profits….I did not get a reply from him. I used to comment on Dave Hodges’s youtube channel and if I had a question, Dave would respond. I asked him about the IRS situation in regards to the cryptos and he replied by calling me names etc. One of his sponsors is a crypto trading school, tradegeniusacademy.com or something like that. I think that is a bit disingenuous. But that is me. I believe the IRS can now collect taxes on bitcoin with no statute of limitations. There is also another government agency that can sift through a crypto ledger and if the crypto was held by a drug dealer or a terrorist, you can be held liable for this. I do not know all the details on this. So, is it worth the risk? I am not sure. All the profits will not mean squat if you get tagged with any of these things that the government agencies will pin on you. Even more disturbing is the crypto gang refuses to talk about this, at least none that I heard. It is also not much of a stretch to imagine the government doing this. If they can arrest a baker for not baking a cake for a gay couple, do you really think they will not do anything to someone holding cryptos? Especially, if the cryptos are deemed a threat to the government control over the dollar. Something to think about. Also, is it possible that this crypto was developed by the government? I am hearing that the NSA had a white paper on cryptos back in 1996. I need to get more information on this, but this point is becoming more revealed. So, I wonder if there is something sinister here. I am not saying this is the beast system or anything like that, at least not now. But this is not such a stretch, I mean look at the petro dollar scheme or read the ‘Confessions of an Economic Hitman’. The US government has destroyed governments and countries to get them into the debt-based system and hooked into the petro dollar scheme. It is quite possible this crypto phenomenon could be another scheme. Why? Maybe to get everyone on board with digital currency or better known as a cashless society. Or maybe it is to get as much wealth as possible out of people before the bottom drops out-it happened before. I really do not know, but my gut is telling me something is not right with this whole thing. Oh, according to David Morgan, if you try to cash out your bitcoin, you cannot get your money. It takes a really long time, if at all. He is the only person that has said this so far. But if this is true, then it is a ponzi/bubble scheme. I am sticking to the metals. At least there is 5,000+ years of history to support the metals. But time will tell. Look out below.