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.