Garth Turner really does not like Bitcoin. Or any other cryptocurrency for that matter:
Bitcoin is done. Kaput. So is Ethereum, Tether, Ripple and all the other kiddie cryptos which people have been mining in their bedrooms and selling on unregulated, undisciplined, unsecure, immature and unstable exchanges.
You can read his post here.
I was giving a technology presentation last December. During sound check, the sound person asked me if I was going to say anything about Bitcoin. I told him that I was going to talk a little bit about Blockchain, the technology underneath Bitcoin, but nothing specifically on cryptocurrencies.
“Why do you ask?” I said.
Turns out that he had purchased Bitcoin simply because everyone else was making out like bandits and he wanted in. Unfortunately, as you can see from the chart above, he bought in near the top of the mountain, that initial drop from peak which tempts everyone to dive back into the pool and snap up the coins quickly, while they are still on sale.
Except that Bitcoin wasn’t on sale.
Whether cryptocurrencies will bounce back or not is hard to say. Any type of bubble, whether it is the current nonsense with real estate in Canada, marijuana stocks or Bitcoin, will make a small group of people very, very wealthy. For most, bubbles end badly. With Bitcoin, many people bought with debt, usually credit card debt.
Someone bought Bitcoin at $19,870 USD on a credit card.
They cannot be having a good day today.
Here are some predictions about the future value of Bitcoin. A couple of these predictions claim $1 million or more for Bitcoin.
A gold rush.
At least until the bubble bursts.