Is the crypto winter over?
- Thread starter schizo
- Start date
Frankly, the move is a bit rushed and the overall excitement is too rah-rah for my taste, but I've learned to shut my mouth and just go with the flow.
Frankly, the move is a bit rushed and the overall excitement is too rah-rah for my taste, but I've learned to shut my mouth and just go with the flow.
No idea what movie you're talking abut. I think this is Overnight bait to get me to post something videoish. Hmmmph.
I AM NOT A NUMBER, I AM A FREE MAN!
"Im a free man,and Im going out the front door."
'A lot of people are going to get hurt' as Bitcoin tests all-time high, top economist warns
https://finance.yahoo.com/news/lot-people-going-hurt-bitcoin-210122087.html
Bitcoin has been on a tear, ripping past $70,000 on Friday, a new record high for the world's largest crypto. While Bitcoin has seen more mainstream adoption, there are still some skeptics. Dr. Burton Malkiel, American economist and author of 'A Random Walk Down Wall Street,' joined TheStreet to discuss what he thinks of the crypto craze.
SARA SILVERSTEIN: And is there any piece of investment advice that you hear now or ever? That’s just a real pet peeve of yours that drives you crazy?
DR. BURTON MALIKEL:
Well, I will give you an example now where people are pouring money into what is a speculative asset class and where I think a lot of people are likely to be hurt, and that is Bitcoin.
And the problem, I think, is that in some sense, Bitcoin is a terrible currency to use. Why would I want to go and buy my cup of Starbucks coffee with a currency that’s up $2,000 or down $2,000 in a single day and I have no idea how many Bitcoin I’m going to have to use to buy my cup of coffee. In some sense, it’s so volatile, it’s not really a useful currency. And the problem is that it is useful for some purposes.
If I wanted to trade in drugs, I think I would be absolutely delighted to use Bitcoin where my purchases and sales would not be known to my credit card company or to my banker, or if I had gone into the computer system of a company and basically had programmed it so it wouldn’t work anymore. And I insisted on being paid a huge sum to unclog their computer system. If, in other words, ransomware, if I were in the business of ransomware, I think Bitcoin would be a terrific currency to use.
So there are uses and that’s ultimately, I think, going to be Bitcoin’s downfall because governments are not going to allow that to keep on happening. So I think there’s just an enormous risk involved in Bitcoin. People say Bitcoin will be fine because there’s a limited amount, there’s not a limited amount of cryptocurrency.
There are many other cryptocurrencies and there’ll be many more in the future. I’m not against technology. There will be government cryptocurrencies, but I think a lot of people are ultimately going to get very hurt by Bitcoin, which is now playing with a new high. And I can assure you if it goes up to a new high, you’re going to draw people in the FOMO crowd. I can’t miss this and I’m afraid a lot of people are going to be hurt. So if I had something to suggest where I’m really worried and what I think is actually the most bubbly of anything in the market, that’s the area that I would pick. I have no idea where Bitcoin is going. Could it go to $100,000? Absolutely, could it go to 200,000? Absolutely. But what I am sure of is that a lot of people who think they know exactly what it’s going to do, I’m afraid a lot of people are going to get hurt.
https://finance.yahoo.com/news/lot-people-going-hurt-bitcoin-210122087.html
Bitcoin has been on a tear, ripping past $70,000 on Friday, a new record high for the world's largest crypto. While Bitcoin has seen more mainstream adoption, there are still some skeptics. Dr. Burton Malkiel, American economist and author of 'A Random Walk Down Wall Street,' joined TheStreet to discuss what he thinks of the crypto craze.
SARA SILVERSTEIN: And is there any piece of investment advice that you hear now or ever? That’s just a real pet peeve of yours that drives you crazy?
DR. BURTON MALIKEL:
Well, I will give you an example now where people are pouring money into what is a speculative asset class and where I think a lot of people are likely to be hurt, and that is Bitcoin.
And the problem, I think, is that in some sense, Bitcoin is a terrible currency to use. Why would I want to go and buy my cup of Starbucks coffee with a currency that’s up $2,000 or down $2,000 in a single day and I have no idea how many Bitcoin I’m going to have to use to buy my cup of coffee. In some sense, it’s so volatile, it’s not really a useful currency. And the problem is that it is useful for some purposes.
If I wanted to trade in drugs, I think I would be absolutely delighted to use Bitcoin where my purchases and sales would not be known to my credit card company or to my banker, or if I had gone into the computer system of a company and basically had programmed it so it wouldn’t work anymore. And I insisted on being paid a huge sum to unclog their computer system. If, in other words, ransomware, if I were in the business of ransomware, I think Bitcoin would be a terrific currency to use.
So there are uses and that’s ultimately, I think, going to be Bitcoin’s downfall because governments are not going to allow that to keep on happening. So I think there’s just an enormous risk involved in Bitcoin. People say Bitcoin will be fine because there’s a limited amount, there’s not a limited amount of cryptocurrency.
There are many other cryptocurrencies and there’ll be many more in the future. I’m not against technology. There will be government cryptocurrencies, but I think a lot of people are ultimately going to get very hurt by Bitcoin, which is now playing with a new high. And I can assure you if it goes up to a new high, you’re going to draw people in the FOMO crowd. I can’t miss this and I’m afraid a lot of people are going to be hurt. So if I had something to suggest where I’m really worried and what I think is actually the most bubbly of anything in the market, that’s the area that I would pick. I have no idea where Bitcoin is going. Could it go to $100,000? Absolutely, could it go to 200,000? Absolutely. But what I am sure of is that a lot of people who think they know exactly what it’s going to do, I’m afraid a lot of people are going to get hurt.
Well, we still have a bit more to go then.
But NASDAQ and S&P are also trading at ATH. So too are COCOA and LIVE CATTLE. Will you get hurt trading these as well?
BTW what the f*ck does he care anyway?!! He is the one who believes the market is random (aka random walk) and that making a price prediction is no better than throwing darts on the wall.
I didn't read his book, but I don't think he is to be dismissed out of hand given his credentials and his real world experience over a period of decades. My understanding is that his most widely-recognized book refers to the majority of investors.Well, we still have a bit more to go then.
But NASDAQ and S&P are also trading at ATH. So too are COCOA and LIVE CATTLE. Will you get hurt trading these as well?
BTW what the f*ck does he care anyway?!! He is the one who believes the market is random (aka random walk) and that making a price prediction is no better than throwing darts on the wall.
As for the other markets you refer to in your post, they are real markets rather than the illusory bullshit that is Bitcoin. There is no denying that it is the speculative instrument of the day, and that real money can be made with it. But you can do so with other markets and with better liquidity and less "whale" manipulation. And with less risk of it folding into itself at some moment in time, whenever that may be.
So as speculative instruments go, it's fine but disproportionately risky. But I think it is criminally irresponsible to advise people to put all or most of their money into crypto as some people here are apt to advise, and to hold for the long term no matter what. When the shit hits the fan, and it will, I hope these people get properly doxxed.