Monday, October 6, 2014

Ha ha, bitcoin is crashing


Ha, ha! Bitcoin is crashing!:

BI - bitcoin is getting OBLITERATED. There's Joey the Weasel being his normal capslock-lovin' self.

NY Times - price of bitcoin tumbles. Down below $300 now.

Krugger - ha ha, bitcoins suck, you libertarians suck. It's even more hurtful when Krugman gets to laugh at you. This one includes a link to The Long Con, which I strongly suggest you read, even if you've read it before.

And why is this happening?

Daily Dot - Russia proposes legislation to ban bitcoins.

It's pretty simple.

The only people with any significant number of bitcoins right now are drug-dealers, script kiddies and child pornographers. In other words, Russians.

If they all dump their bitcoins, the price collapses because nobody wants it.

As it turns into more and more of a disaster, more and more people will sell it and it goes to $0. Because it has no value whatsoever beside what the next clown is willing to pay for it in order to buy more drugs, hacked credit card numbers, or pr0n.


5 comments:

  1. On the Russians, did you see where Putin categorically denied that Ruble
    exchange controls would be imposed. So you know what that means, Ruble exchange controls are coming soon.

    If Russian criminals are the big BTC player you suggest, there could be a bump. Use BTC to move your criminal proceeds to the safety of wherever but the motherland.

    I still have about 12 btc, looking for place to exit or a way to hedge.

    Any ideas on shorting this?

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  2. Some major problems with BTC that the cheerleaders don't like to talk about.

    -No way to hedge the volatile price swings, so if you are a real biz, you just use it for quick transactions and dump it all back on the market.

    - Exponential expansion of the blockchain to gig levels soon. The blockchain will be too big for most pc's in a few years. 1 terabyte+ blockchain space just to have a wallet. Uh no!

    -We hit a miner group that for a time controlled 51+% of the hashing. They could have used that power to double spend or worse.

    Net short gold here, sold my miners in Aug and overhedged my phys with GLD and SLV puts.

    Long vanguard S&P500, slightly short gold and silver other than that, YAWN........

    Too chickenshit to play the commodity crash on the short side since my doomer pals still insist the dollar will collapse any second now! Oh wait, they have been wrong for the last 3 years and had their asses handed to them.

    CRB short?

    ReplyDelete
    Replies
    1. Saw an article that blamed the commodity crash on allocators dumping their entire commodity allocation because over the past year it made them underperform SPY.

      Delete
  3. It's the only game in town, get on board or get "Left Behind".

    ReplyDelete