Bitcoin Bubble One Of Stupidest In History, It Isn’t Even A Tulip Flower Bulb!

Bitcoin Blasts Through $2200, Here’s Why | Zero Hedge as excited believers in this ‘crypto currency’ made out of thin air and backed by absolutely nothing…is a classic bubble fad item.  Anything can have this sort of bubble.  People sitting on bitcoin ‘savings’ will figure they are millionaires and will hold until…it collapses.  The new buyers would buy and sell and buy and sell over and over each time, making more money and then…it collapses and they are bereft.  The temptation to keep buying and selling is too great to resist which is why people always end up in the crash despite plans to sell off before it crests.

 

A very simple rule of thumb of life: nothing goes to infinity.  Once one sees that something is doing the ‘to the moon, Alice’ you know it is going to blow up or vanish or crash.  Absolutely all humans want to have a free ride.  Free rides are fun except you have to pay the final price…meet Mr. Reaper.  He is the one who has the final value.

 

All previous bubbles had another interesting feature: if they are a big market share, if they are ‘rich’ they cause a terrible crash and destroy civilizations and societies and lead to empires in ruin, etc.  They are highly dangerous when they are really big bubbles.

Stock Market Crash Causes Depression: note that this bubble is identical to the Bitcoin nonsense.  Since the stock market does have things of real value (building/manufacturing/etc.) the surviving stocks slowly recover value.  People note that all big market crashes clear out all the dicey stocks based on stupid things.  This is why patrolling stocks and preventing fraud is important.

 

Rip roaring markets see lots and lots of fraud.  Panic buying of various items are the same: fraud is nearby.  Bitcoins are from day one, a fraud.  But enough people want to play with this fraud, we can’t stop them but they better not whine when burned by this silly children’s game.

 

Once upon a time, governments didn’t allow this sort of fraud.  But in recent years, governments have ceased to govern so we have interlocking and overlapping frauds popping up here there and everywhere.  So I can’t stop people from participating in these various schemes, only warn them that they are playing with fire which can literally destroy their homes, marriages and maybe leave them begging when elderly.

 

The Shape Of Market Bubbles (With A Special Look At Gold) – Business Insider: from the recent past.  Gold has reality.  It never ceases to be a ‘rich item’.  Even barbarians love gold, it doesn’t age, go bad, it is very pretty, it is very strong, it has ‘durability’ that can last for eons, quite literally.  So, in the last 6,000 years, it has been considered a powerful treasure fit for rulers.  Even with the history of being the longest ‘valuable trade item’ it still has…bubbles and crashes!

 

The bubbles are identical to the Bitcoin bubble only at the end, those holding gold still have gold, at least.  It never drops to zero.  Even tulips retained a price, not much but still, you could buy and plant these, I have tulips!  They are real.  Paper money: even the German marks from the inflation years has value today as historical items.  But cybercoins have nothing.  You can’t frame it.  They do advertise it with picture of a real looking ‘coin’ that is pretty.  But the cyber stuff is nothing.

 

This reminds me of the Catholic Church.  They sold ‘forgive all sins at the right price.’  This forgiveness was to give one passage at death to Heaven, not Hell.  The price went up and up and up and the Church became very, very rich and people became very, very angry and it all blew up and the Church was shattered and the Reformation destroyed the value of all those bequests that were to protect the sinner forever, all destroyed, the church buildings ravaged and looted, all the physical stuff, removed, stolen, etc.

 

Faith is a very touching thing.  People have faith in the most astonishing things, it never ceases to amaze me.  I am a realist.  Being hit by lightning five times makes me wary of crazy stuff and I like to be prepared for the worst, a pessimist…it is stormy outside while I write.  A lightning bolt two days ago landed just down the street from my home.  That scares me.  Lightning is very ‘unreal’ in that it is electricity, not a solid item.  That is, is is energy and has more power than any number of bitcoins and can destroy these say, by hitting the computer systems running the bit coins and shorting out everything.  Ahem.

 

NOOOO!!!  See? I wouldn’t want those stupid fake money things.  The gods won’t allow it, at least, Thor would make a mess of things.

 

 

 

 

25 Comments

Filed under .money matters

25 responses to “Bitcoin Bubble One Of Stupidest In History, It Isn’t Even A Tulip Flower Bulb!

  1. Jim R

    So, which price do you think it will hit first?
    1. $10,000
    2. $1,000

    ? It will do one or the other of those things. Which one?

  2. Lou

    I dont know where the price of an ecoin goes.

    Someone claims there are now 1000? different bitcoin imitations.

    Tulip mania, at least a buyer got some bulbs.
    Pet rock, at least it could be used as a paperweight.

  3. Hey Jim R – I’m willing to bet you. How about a mea culpa to the one who loses the bet.

    OK, with that said I bet $1000.

    Of course, this bet will only work if you think $10000.

    What do you think?

    Lets get it all on the table and get to work. That is what I’m gonna do.

  4. Lou

    A believer, this is unintentionally comical;

  5. Jim R

    @Buffalo Ken,
    OK, I’ll take the other side of that. If it collapses, I’ll owe you a mea culpa.

  6. How about a cup of mea?

  7. OK – it is agreed.

    me·a cul·pa
    ˌmāə ˈko͝olpə/Submit
    noun
    an acknowledgment of one’s fault or error.
    ““Well, whose fault was that?” “Mea culpa!” Frank said”

  8. Robert

    I made 4,150 dollars on a small investment. I really got burned by this ponzi scheme…

  9. Jim R

    It is overdue for a big correction. If it stays above $1000, my little wager with Ken is still on. I think it’ll stay above $1000, but this kind of crazy stuff will not go on for much longer. Someone will say ‘BOO!’ and the price will plummet.

  10. When big bubbles pop, and it is something with no real value, it goes all the way down.

  11. Not to get away from the very important news of the day, but I’ve been thinking about this some more, and Jim W (#11), I would like to raise the stakes and the interest level on our heretofore friendly bet. This is what I propose.

    If you win (bitcoin = $10000 or more), in addition to a public mea culpa, I will wire over to you immediately 0.0105 bitcoin (nominal $105). In the same vein, if I win (bitcoin = $1000 or less) you will wire over to me immediately 0.1 bitcoin (nominal $100) and I don’t care about the mea culpa. You can keep that to yourself.

    If you are interested we could setup all of the “wiring” details in advance (or at least I think this could be done) although this would likely need to be via a private contract being that “public” betting in this forum probably isn’t kosher (yet – some bill was proposed today, but that is another story).

    A better option in my opinion would be a “Gentleman’s Agreement” to send the equivalent funds in any valid currency, and this would be a hell of a lot simpler. I would also accept a token that is “Buffalo-oriented” and reasonably considered of equivalent nominal value. I’m good for my word, but I would need an address to send the funds (and presumably this holds true vice-versa as well).

    One last thing: I would like to propose a 12-month window effective at the time of this posting on Elaine’s site after which, the bet is off. Of course, this is optional, but it would be my preference to put some boundaries around this – otherwise we both might be dead before the bet is ever resolved, and being that I’m a betting man and have a general idea of your age, I suspect this provision is in your interest (from a statistical standpoint of course).

    The most likely outcome is that neither of us will win, but I think my chances are better and that is why anyone bets……ain’t it?

    What you say pal?

  12. Jim R

    Bahahahaha, now you wanna put money on the line. Well, if you think of BTC as money, anyway.

    And you want 10-for-1, hahaha! Nah, you can keep your $105.

  13. Oh Well. I was looking forward to discussing possible hedge options on this bet, and maybe getting a buffalo token.

    I’m not exactly sure what you mean by “10-1” being that in dollar terms it was $105 versus $100. You can’t compare absolute bitcoins at different prices.

    No matter. It is back to a “mea culpa” with no time limit, and if we are lucky maybe a “cup of mea” to the winner!

  14. Jim R

    My prediction record is that I almost never guess right. And by its nature, this new-fangled ‘internet money’ is extremely volatile.

    But right now, my guess is that the present correction will bottom out at about $1500, and then it will resume its ascent. It’s a fricken’ roller coaster!

    It might hit $10,000 but probably not this year.

  15. Jim R

    OK, Buffalo Ken. . .
    How about this: Elaine will hold the purse for our bet. She gets a wallet address, and each of us contributes 0.1 Bitcoin for a total of 0.2.

    On June 30 2018, the bet times out. If neither limit has been hit, Elaine returns our 0,1 BTC, minus a 5% fee for her trouble.

    When we think one of our limits has been hit, we will submit screen shots from whatever exchange you wish, to Elaine, who will judge whether it is a genuine hit. If she agrees, she forwards the 0.2 BTC, again minus a 5% fee, to the winner.

    Obviously this plan is null and void if Elaine does not agree to hold the purse.

  16. I thought this conversation had reached its culmination.

    I’m not that comfortable in dealing in actual “bitcoin”. I don’t really understand the mechanics.

    Here is another idea. Why don’t we both just contribute an amount of our choosing to Elaine’s blog and then she can use it as necessary. This transaction can be in US $ and that seems more real to me — even if it is a fiat currency. It is much more liquid. I plan on doing this myself regardless and maybe you already have or would like to do likewise.

    As for our bet, I think I just want to keep it at the “mea culpa” level. When it goes above or below one of the limits, I think it will be evident.

    Peace,
    Ken

  17. No way would I take responsibility for a fraud.

    Look, the stupid bit coins rose in ‘value’ when desperate people needed these to pay off the criminal hackers. End of story.

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  20. Christopher

    Excellent article, I’d love to donate but I’d rather not use paypal; as the fees are too high and I’d rather not support a company that engages in political discrimination.

    I also try to avoid using fiat currency, as it’s inflationary and because as you pointed out, the value of currency is arbitrary.

    What isnt arbitrary, is that I can send you money that isn’t tied to a state, instantly, to your phone, simply by you downloading an app called mycelium and sending me the address.

    That seems to make bitcoin a rather valuable tool don’t you think?

    Do you take bitcoin?

  21. Ville

    So bad article. You clearly understand what a bubble is. But you seriously dont understand what bitcoin / blockchain / cryptocurrencies / cryptoassets are. You talk like Bitcoin is some kind of company that can be shut down with a switch. Its not a company, its a decentralized LEDGER. You cant shut it down. Technology moves faster than normal stocks. Gold doesnt have any real value. Bitcoin has technology and innovation behind it. Completely decentralized platform thats 100% secure. Thats the value of bitcoin.

  22. All ‘crypto currencies’ have NO SUBSTANCE. If we say, have a war or social collapse, they are useless and impossible, even. The gold standard for ‘wealth’ are three things: gold, slave labor and land. Ownership of all three leads to a life of wealth and leisure.

    Also, I grew up inside the ‘computer revolution’ business starting with the computer complex at the University in Chicago where my father had access to IBM top computers to do complex calculations. I even helped build actual computer systems way back during the Vietnam war. Computers are FRAGILE SYSTEMS. And corruptible!!! Utterly corruptible. This is why information has to also be still put on ‘paper’ or other more stable systems.

  23. Lou

    24–I am going to Blockcon today. ‘Goblockcon.com’

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