One Picture Which Proves Bitcoin is a Bubble

by John Galt
August 20, 2017 22:10 ET

Should I post a bunch of graphs comparing the 1990’s tech boom to Bitcoin?

Eh, no.

What about an in-depth analysis of the Tulip mania compared to other bubbles past and present.

Er, no, not that again.

Just the picture below which I snapped one day while sitting at a traffic light in Sarasota County:

Cash4Gold was a fad and flopped. When someone implies that it is “easy money” it isn’t, it is a bubble.

This too shall pass, mark my words.


1 Comment on "One Picture Which Proves Bitcoin is a Bubble"

  1. aqrobles | 26/08/2017 at 20:26 |

    I agree, its a bubble. Real Estate is a bubble, stocks and bonds are in a bubble. It doesn’t mean you can’t make some really good money until the music stops. My bet is that cryptocurrencies may be the last to go – primarily because of the Chinese.
    They are hostage to our dollars and dollar denominated debt because they are trying to keep our dollar stronger in relation to the yuan. Normally to exchange yuan for dollars, you sell dollars (bidding down its value) and you buy yuan (bidding up its value). I say normally because this sort of thing gets reconciled by SWIFT. The Chinese solution is to hold on to those dollars and make internal loans against them in yuan.
    But what if?
    If the Chinese sell their dollars to buy a non-sovereign, cryptocurrency like XRP (which is a crypto currency designed to circumvent SWIFT), the value of the yuan vis-a-vis the dollar doesn’t change. They get out of dollars and the rest of the world supports the cryptocurrencies as the dollar and other major currencies crash.

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