Saturday 9 December 2017

Bitcoin is today's Tulip Mania........................from Rico

It's NOT different this time. It never is different because huMAN natURE does not change.
- "Men think in herds, go mad in herds, recover their senses slowly, and one by one."
BITCOIN contracts were trading over $19,000 yesterday at one point, and are somewhere around $16,872 now and rising fast so who knows...maybe $1,000,000?
- It was trading at $1,000 the first day of 2017. Bitcoin is a 'virtual currency' offered by a San Francisco start-up called Coinbase. That's imaginary currency created by wankers for wankers.
- Also reassuring, the CEO of JPMorgan Chase Jamie Dimon said "if you're stupid enough to buy it, you'll pay the price for it one day."
- And consider, if the electronic system for this 'virtual currency' [read: imaginary currency] crashes, or there is a Denial of Service attack, Lil' Kim drops an EMP, a storm wipes-out the electric grid, and then all the 'virtual' electronic digits 'vanish' and there is no more Bitcoin.
- Being 'hacked' is also a significant risk. Even the US Government's OPM was hacked, just for one example.
Bitcoin is a social mania, a modern version of the Dutch Tulip Mania.
- Both 'fashionable' delusions. Imaginary.
TULIPS. Let's skip over Cyprus where the bankers screwed-up and then screwed their customers to make-up their losses, or Communist Zimbabwe's and Venezuela's destruction of their real economies and financial systems (the Z$Dollar and Bolivar), and ignore Weimar Germany where the 1920's Mark went from RM 4.2 to $1 as high as RM4.5 billion to $1, or even the 1700's South Sea Company, and look at Holland back in the 1600's.
- Speculating in contracts for the newly introduced and 'fashionable' Tulpen [tulip] reached extraordinary price levels before crashing in 1637.
- One tulip bulb was selling for 10x the annual income of a skilled craftsman, but it was a public 'mania'...a 'delusion' that had no critical connection to, or impact upon, the prosperity [economy or currency] of the Dutch Republic as it was NOT an economic or financial crisis. It was a fantasy. Imaginary.
CONTEXT. In today's environment we have fake news, fake markets, fake unemployment numbers, fake inflation rates, fake history, and now we have FAKE MONEY.
- Tulips or Bitcoin, there will be a real banquet of consequences.

1 comment:

Lola said...

The greater fool problem