A Cynic’s Guide to Crypto Investing
A Cynic’s Guide to Crypto Investing by Bill Bonner – Bonner and Partners
LISBON, PORTUGAL – It is still warm here in Lisbon. Like summer.
We’re staying at a hotel on the Avenida da Liberdade, with large plane trees shading the wide sidewalks and grand old buildings lining the streets.
Bill explores the shaded streets of Lisbon
Bitcoin went over $6,000 on Sunday and then fell on Monday. This morning, it is at $5,752.
“Dad, there’s going to be a bloodbath…
“We were urging everyone to learn about bitcoin. This is the biggest thing to happen in the money world since gold was introduced.
“But this market has gone crazy. Now, we’re warning people to be careful. As you say, you shouldn’t put any money into cryptocurrencies unless you could say goodbye to it without losing your sense of humor.”
Our in-house enthusiast knows a bubble when he sees one.
“A lot of people are going to lose money in this market.
“I still believe in cryptocurrencies. But now everyone wants to get into cryptos. And a lot of these deals are pure rip-offs. Most of these ICOs [initial coin offerings, ways crypto ventures raise capital] have no hope of succeeding. This is like the dot-com craze at the end of the 1990s.
“We’ve turned defensive. People used to need advice on how to get into cryptos. Now they need advice on how to get out.”
Jordan Belfort, the crooked penny stock broker portrayed in the Martin Scorsese movie The Wolf of Wall Street, says initial coin offerings are a “gigantic scam.”
He knows one when he sees one. He served 22 months in prison after pleading guilty to securities fraud and money laundering.
(Whatever fraud and foolishness is involved in cryptocurrencies, it is a mere chemical trace of the scam of the fiat dollar. More on that anon.)