Wednesday, February 24, 2021

BITCOIN? LOL

 

We are on the brink of a historical event. In a few days - or even a few hours - one bitcoin will be worth more than 1kg of gold. Ironically the rise won't stop there - the 'value' of worthless crypto currency with no store value will continue to go through the roof! Until, like all bubbles in the history of humankind, it bursts into nothingness. The same nothingness it is made from.
For those of you wondering ''Am I too late to the party?'' my answer is simple: no, you are not. For the same reason a decent an honest man is never too late to a drug party organised by a gang lord.

The fact that Bitcoin is fake gold is obvious to any reasonable person. It is not a currency, not an asset, not a unit of account and it doesn’t provide a scalable means of payment. No income, no use, no utility. At it's core, it is a self serving speculative system used by criminals, terrorists, human traffickers and tax evaders, sheltering their wealth and moving money across international borders.

As a system outside government control, sooner or later, bitcoin will be crushed by governments world-wide because no government is going to allow untraceable tax-free transactions for too long. When that happens the bubble will burst and in that moment there will be no winners. Bitcoin will revert its intrinsic value – which is zero. Or more precisely below zero because maintaining the chain ledger will cost billions of dollars in electricity consumption alone.

I am not a financial adviser of any kind, but when we have a spare dollar or two, we invest in education, workshop machinery and watches. Real assets that will take our earning capacity to next level.

The best investment for a carpenter is in timber, for shoemaker in leather and jeweller in gold. Planting a few native shrubs in your backyard and painting a house with a fresh coat of paint is simply a smart investment. Investing in a new pair of walking shoes and a dog is the ultimate investment.

Obviously, the future of money is in some form of digital exchange, and sooner or later we will go ‘crypto’. But that coin won’t be a Bitcoin. In 20 years from now you will remember this moment in time with chuckle, while checking the time on your NH Mark 1, Seiko or Omega thinking – well THAT watch was a great investment.                         

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