Back to the future….

Wednesday, 4th July 2018

Back to the future….

It’s been a spectacular plummet – just like one of those cartoon pianos falling out of the sky….

From a high of almost $20,000 in mid-December 2017, the value of Bitcoin dropped below the $6,000 level last week….

It’s rallied a bit since. But it shows no signs of steaming back to the peaks of last December….

Plenty of eager-faced punters were loading up on the ‘new gold’ ahead of the Christmas drop-off. Now, they’re sitting on losses approaching 70% – and licking their wounds….

Bitcoin is shaping up to be a record-breaker of a bubble – as measured by its top-to- subsequent-bottom plummet….

After the dot-com crash of the late 1990s, the Nasdaq Composite Index lost 78% of its value….

Bitcoin is closing in on that unwanted record – and fast….

  • Great fun….

Here at Money Truths, we hate to say we told you so. But, and we say so in a spirit of complete and utter humility, we did….

To us, it was always obvious that there was a mania at work and that Bitcoin was a speculation bubble….

It’s one reason why we were one of the very few financial publishers that we know of who did not seek to cash-in on the crypto-craze by peddling Bitcoin- or crypto-related products and services for big money….

Ahead of last Christmas, it made us laugh out loud to watch the preposterous entertainment as publisher after publisher fought to position their freshly-minted crypto ‘expert’ as the man to follow into a brave new world of profit and opportunity….

Men we had never heard of before and will probably never hear of again were churned off the production lines, pumped-up, over-promoted and paraded in front of us as ‘genuine cryptocurrency experts’….

Many claimed to have been in on the ground-floor. Many others claimed to know exactly where cryptos were headed next and what moves you should be making to make hay….

Few had been. Few did. We doubted their back-story and their credentials then. And we most certainly do now….

Most have disappeared – to wherever it was from whence they came. All have gone quiet. We don’t hear from them anymore. Their products and services appear to have been abandoned, mothballed or air-brushed out of history completely….

And the good folk who took these people at their word, heeding their ‘expertise’ and following their ‘advice’, have learnt an expensive lesson they probably wish they hadn’t….

  • A bet gone wrong….

We miss other old friends that we don’t hear from so much as we did – now that Bitcoin has careered out of the sky like a malfunctioning space rocket….

John McAfee, for instance….

This time last year he was ranting and raving and promising to eat his own genitalia live on US television if Bitcoin didn’t hit $500,000 inside of 3-years….

That bold bet isn’t looking so good 12-months on. And John hasn’t mentioned it in a while….

These days, he is busy making a name for himself as a ‘crypto-troll’ – raging against crypto-exchanges and the power they have over the market….

But we know that John McAfee is a true gentleman. And a true gentleman always settles his bets….

Come the summer of 2020, we expect John to make good on his wager. If he doesn’t, Money Truths will be pounding the table and asking why not….

  • The ‘crypto-genius’….

James Altucher, is a little quieter than he was too….

You might recall that Altucher was described as the unofficial ‘face of Bitcoin’….

Or you might recall him as the self-proclaimed ‘crypto genius’….

At the height of the crypto-frenzy last year, Altucher’s Internet advertisements – in which he claimed to have ‘cracked’ the ‘crypto code’ – were literally unavoidable and inescapable….

He claimed he could ‘predict which penny cryptocurrencies are set to jump 800 percent or more starting in the next 2-3 weeks….’

We wonder if he is still pulling off the same clever party trick in July 2018? If he is, he’s certainly not being so vocal about it as he was….

Good folk who bought into his claims were encouraged to shell-out $2,000 for a year’s subscription to his Crypto Trader newsletter – and that was a discounted price too!!  Altucher maintained that the real value of the service is a whopping $5,000….

Maybe it is. We can’t comment. We didn’t pod-out the money and subscribe. But we doubt too many readers who did will be renewing their subscriptions when they expire….

James Altucher will not be too concerned though. No doubt he did very well out of the crypto-mania, if not with his actual crypto-investments. And good luck to him….

  • Disparaging descriptions….

The days when anybody had anything good to say about Bitcoin appear to be long gone….

Indeed, some important, well-known and very influential people have become quite disparaging as 2018 has rolled on….

In May, mild-mannered octogenarian super-investor, Warren Buffett, described Bitcoin as ‘rat-poison squared….’

His sidekick, Charlie Munger, felt moved to go further. He said:

‘Suppose you could make a lot of money trading freshly harvested baby brains. Would you do it? To me Bitcoin is almost as bad….’

Then 94-year-old Munger went further still and compared Bitcoin traders to clueless people with dementia trading fecal matter just to keep up with everyone else….

‘[It’s] like somebody else is trading turds and you’re being left out….’

Bill Gates was not quite so graphic the same month. He kept it on the down-low and painted cryptos as a simple tool of heinous criminality….

‘Right now, cryptocurrencies are used for buying fentanyl and other drugs, so it is a rare technology that has caused deaths in a fairly direct way….’

Bill Harris, the founding CEO of Paypal Holdings Inc, stuck to the tried and tested route of referring to Bitcoin as a scam – calling it a ‘colossal pump-and-dump scheme’….

  • What gives?

These are very prominent and important people – fully paid-up members of the financial establishment. Their various comments and opinions enjoy wide exposure and they influence many people….

Maybe they have a point….

Or maybe they just have an agenda….

Maybe they are doing their bit in a wider-scale attempt to stamp-out the embers of a cryptocurrency revolution that is on its knees – at least for the moment….

Time will tell….

In the meantime, I’ve been doing some reading and some research – growing my knowledge and getting to grips a little more with the crypto-world and what’s really going on….

The speculation mania may be over. But what I’m reading suggests the future might still be heading our way regardless….

That’s how it looks from here. More on that next time….

All the best,

Dave Gibson

Money Truths