Tuesday, May 25, 2021

CRYPTO CRASH. I'M DONE (as a millionaire)

The first seven minutes give a pretty good reason why as to why cryptocurrency might be a bad idea.  The rest is just technical analysis.

Bitcoin has no value other than the willingness of other people to buy it or accept it as payment.  This is called the "bigger fool" theory, where you hope that there is a bigger fool than you out there.

I could have bought bitcoin at $5, $50, and $5,000.  I could have made a fortune.   During an inflationary period, some assets will increase in value.  Someday Bitcoin could be worth a million dollars.  However, the moment that people decide that they don't want it, it could lose all its value.  Likewise, the government could regulate it out of existence.