Tuesday, December 12, 2017

BitCoin will go bust.

When people invest in something without fully understanding why it has value, that causes bubbles to happen. They see it go up in price and decide that they want in on it no matter what it is: tulip bulbs, tech stocks, Beanie Babies, etc. But if expectation of an increase in value is the only reason why people are buying an asset, there will come a point where the price reaches it′s peak and some speculators sell to take a profit. Then a lot of investors sell to cut their losses.

Right now, people are taking out mortgages and using credit cards to buy Bitcoin. It′s foolish to invest with money that you don′t have. This can have a huge and unfortunate ripple effect. When Bitcoin goes down in value, people will have all that debt with nothing to show for it. Watch for banks to use all those bad loans as a pretext for asking for another bailout. This is the kind of stupidity that causes recessions. Banks should not grant loans to morons.


If you own Bitcoin right now, sell it. Remember the mantra of ″Buy low, sell high.″ Gold is doing poorly low right now, so consider buying that. The worst time to buy gold is when you see TV ads encouraging you to buy it. Don′t buy it when everyone else is buying it. Buy it when everyone is selling it.

EDIT: I was asked what date this would happen by. I'm going with June 30th, 2018.

6 comments:

  1. John McAfee, a man who built a fortune in tech, is so sure you are wrong, he's willing to eat his own manhood.
    How sure are you?

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  2. https://www.rt.com/news/411379-john-mcafee-bitcoin-prediction/

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  3. I believe that McAfee is prepared to eat his own penis. An important rule of investing is to never risk anything that you can't afford to lose.

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