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Why Bitcoin Must Crash and Burn

John Galt

Knowing some of my readers as well as I do, I am pretty certain that there will be a backlash of hate and disgust with just the title alone and few of those scanners and scammers will proceed on beyond the headline to read the meat of this commentary.

This is not the typical “buy gold as the end is nigh” article which permeates the web today. In fact it is not a condemnation of the theoretical value of Bitcoin or other cryptocurrencies as articles like this one from Current Affairs:

Why Cryptocurrency Is A Giant Fraud

Even though this one money shot within the story by Nathan J. Robinson is somewhat spot on:

If it’s mainstream now and we should pay attention to it, it’s a good idea if we try to understand what it is and what its economic implications are. You may have ignored Bitcoin because the evangelists for it are some of the most insufferable people on the planet—and you may also have kicked yourself because if you had listened to the first guy you met who told you about Bitcoin way back, you’d be a millionaire today. But now it’s time to understand: is this, as its proponents say, the future of money? 

Amen, there are some sound logical proponents for cryptocurrencies, then their are the insufferable geeks; no different from those who promoted paper gold and silver in the precious metals arena or holding companies as the future in 1928.

First and foremost on this subject, cryptocurrency it is NOT the future of money in the current common use of the term. Governments will never surrender their power to monopolize the transfer and taxation of all financial activity of their serfs. They have not surrendered said power since ancient Babylon so why in God’s name would they start now?

In the larger picture of things, the exuberance has reached the level of stupid far beyond anything I could ever imagine. While scanning my favorite yute investing Twitter account (that’s youths for you with no sense of humor), this gem popped up this week(Thanks to TikTok Investors):

SCAMcoin, another joke coin like DOGE has skyrocketed with no backing but a clever college student saying “f” it and creating it out of thin air. It sounded cool so people bought it up, like tulips or poocoins.

Crazy enough for you? What about a cryptocurrency called Cumbucket:

It has a price on April 22, 2021 of 1 penny (1.3 to be exact) and a market cap of $140 million. But it’s not a top if we are to believe the con artists. Instead of invalidating the articles screaming that Bitcoin and other cryptocurrencies are frauds, the scammers and jokers are validating what everyone who has lost money in a Ponzi scheme will tell any investor:

It is too good to be true.

The young investors, of whom I know a few, will preach that our old ways of thinking are defunct and guess what; it’s different this time. Is it?

This is the top or damned close to it. Bitcoin might well break above $60,000 one more time but after that, barring some massive validation of this move, the whales and banksters that lured everyone into cryptocurrencies will engage in the century old practice they always have:

The harvest.

Since the founding of time, financiers and banksters have found a way to inject money into the system, allow a small group to become paper wealthy, then rape and pillage the masses to take away their gains. It happened in 1929, it happened in the 1960’s, they used inflation to destroy part of the middle class in the 1970’s, the 1987 crash wiped out many retirees, the 1998 LTCM debacle, the 2000 Nasdaq bubble popping, the 2007-2009 housing crash, and now the scamdemic followed by the Great Reset.

When the harvest begins, no one can predict the exact date or time but the indicators are there. The larger institutions are promoting the cryptocurrencies as investing vehicles, which means they need more customers to offload their gains. The governments are starting to take a long hard look at the structure of exchanges and how to increase regulation and taxation for their profit and use. In addition, famous billionaires and those within the governments are promoting the idea that enemy governments are using Bitcoin (and other cryptocurrencies) to debase their national monetary monopoly:

Peter Thiel suggests Bitcoin may be ‘a Chinese financial weapon against the U.S.’

That article linked above from Bloomberg via Fortune magazine is not an accidental statement nor an idea that the U.S. Government has denied.

Everything is in place, including some famous cryptocurrency advocates now saying that many of these coins need to revert to the mean as the markets are overheated. Thus the opening for a standard, run of the mill 20% correction turning into a rout is there. Cryptos will be available at a lower price as I could easily see Bitcoin retesting the $20,000 level within weeks if not months:

Chart courtesy of Investing.com

$13,850 was the major peak just before the 2018 “crash” and once again this parabolic move is not a validation of Bitcoin as the future but in fact an indication of the massive loss of faith in fiat currencies and governments on a global scale. The problem most end users do not realize is that if I owned Bitcoin at $100.00 then bought a new Tesla at $50,000 with Bitcoin, not only do I have to pay sales tax on the vehicle (plus other fees) but a capital gains tax for the realization of my profits. Thus the average buy and hold yutes who think their DOGEcoin is going to make them filthy rich do not understand that to use those profits, the taxman has to be paid and losing it all does not mean the same taxman will bail them out.

If my readers who do engage in these speculative instruments have not taken their profits already and converted back to their evil local fiat currency of choice that is on them. I do not pity them but gold, silver, and ammunition would be a better thing to buy than holding on to a digital currency with great potential to make one more devastating round trip to much lower levels.

For those readers who scream that this is just another anti-crypto article written by a dinosaur who does not understand how this works, I remind those lost souls of this chart of a Federal Reserve Primary Member bank, still lingering around its lows 15 years later:

Chart courtesy of StockCharts.com

Crashes happen and often they are engineered to by the creators of the bubbles. If anyone does not believe me, I have some Netscape stock to sell you.

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