Triple Lutz Report (#417) – Bitcoin Bubble Bust Coming

from Financial Survival Network

Bitcoin is nearly $3000! That’s the good news. The bad news is that the Bitcoin chart is looking parabolic. Unless the end of the global financial system is arriving shortly, this can only mean that the price is being manipulated up, by the powers that be, to facilitate a major crash, thus undermining the confidence in crypto-currencies. To be decided shortly, mark my words. In other news, President Trump will not be impeached, yet anyway. The Comey affair is a bunch of nothing wrapped up in yesterday’s New York Times. Think about it, why would Trump fire Comey when he was out of the office 3000 miles from DC? Answer, to allow his AG to take control of Comey’s office and retrieve all the damaging files on all the DC Insiders. This is the FBI’s heads traditional role since J. Edgar Hoover. And it worked like a charm. You don’t hear many dems crying to impeachment now, because Trump now knows where the bodies are buried. Finally, NYC keeps declining more and more. They’re celebrating a terrorist for the annual Puerto Rican Day Parade. Nothing surprising here.

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4 comments to Triple Lutz Report (#417) – Bitcoin Bubble Bust Coming

  • David Jensen

    Well done Kerry. Bitcoin is an abstraction with encryption bells and whistles. Abstractions can be created without limit and that is why these criptos will crash – they will not stand the test during an economic disruption as every coder and their bro will be creating them.

    One important additional point IMO is Aristotle’s 4 characteristics of money included that money must have intrinsic value. Gold and silver do which is why they’ve stood the test of 4,000 years as money and why bitcoin, fiat, even Rai Stones don’t meet the test. Their is nothing intrinsically valuable about them. That is what set’s gold and silver apart from cryptos and all the other currencies.

    Bitcoin and cryptos can go bananas, as you mention – no doubt. But they appear to have a fatal flaw that makes them just another promotion and not the real deal.

  • citizen49a

    Bitcoin is an abstraction with encryption bells and whistles. Abstractions can be created without limit

    You fundamentally misunderstand Bitcoin. Although Bitcoin continues to be produced, there is a limit to how many Bitcoins can be produced.

    Once that limit is reached that’s it. No more Bitcoins will ever be produced.

    That’s kind of one of the main points of Bitcoin.

    Some of the other cryptocurrencies don’t have this limitation, but it’s one of the fundamental reason for Bitcoin’s acceptance, i.e. no one can do funny business like the Federal Reserve and produce more Bitcoins past a certain point, so the value of Bitcoin will be fixed with respect to everinflating fiat currencies.

    What gives gold intrinsic value? Only that it is accepted and granted value, primarily due to it’s rarity.

    If Bitcoin is accepted and is similarly rare, which it is since once all Bitcoins are mined, there can be no additions to the supply, then how does it materially differ from gold as an exchange medium?

    Gold was accepted as money in a time before there were computers, before people spent large portions of their life online. For better or for worse, the world has changed.

    Now people “live” in the online world. You are interacting with me on a website that is really nothing more than an arrangement of electons. Most of the assets banks hold in “accounts” consist of a different sort and accounting of electrons.

    Bitcoin may pull back, but it is not going away.

    I think Andy Hoffman is right. We’re in the early stages of a transformation of the way we think about, store, and exchange value and wealth.

    Bitcoin may not be the endpoint, or even a major stopover in that transition, but for now it is the future…unless governments are able to stop it and/or control or coopt it, which is not beyond the realm of possible nearer term outcomes.

  • Kerry

    Great arguments here and I can definitely see your point of view. It’s a question of can the powers that be destroy it before it reaches critical mass. I’m not sure, but long term I love cryptos. You just never want to see a market go exponential and become a mania, It only works out one way when that happens.

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