AIA Video Update 2/4/2018
This week I discuss the similarities between the current bitcoin bust and the tech wreck back in 1999. A lot of bitcoin bulls are not going to like what I have to say about these crypto currencies. Nevertheless, this is continuing to play out just as I predicted in my 2018 forecast issue.
The establishment is going to choke off the speculation in the coins and from this bubble rubble will emerge actual real companies that are going to develop apps that actually have utility and value.
I just saw this morning that China is moving to further tighten the ban on crypto currency trading. In addition several large credit card issuers are no longer going to allow crypto currency purchases with credit cards. They are nervous that they will not get paid back when this thing busts.
Credit was a major fuel for the bitcoin rocket because small and average investors don’t have much money to invest in the first place. The average person in the US does not even have $400 in a checking account. So where did these people get the money to put into bitcoin when all the hucksters were saying it could only go up.
They borrowed it on their credit cards of course. Now they have an asset in free fall and will be left with the debt. It’s like Gordon Gecko said in the movie Wall Street, “How did a fool and his money get together in the first place?”
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