Heisenberg is a “no coiner.”
According to one angry e-mail, that’s what you call someone who doesn’t own any Bitcoin. Regular readers know that we have absolutely nothing against Bitcoin. Regular readers also know that we’re all for superior technology replacing antiquated technology. Finally, we don’t begrudge anyone who has gotten rich on Bitcoin their money – on the contrary, if there’s anything that makes us happy, it’s a story about someone who made a lot of money.
Our reservations about Bitcoin do not revolve around some long-winded critique of its viability or about the feasibility of it becoming actual “money” (and “money” is an inherently amorphous concept). If you want to read critiques along those lines, see here and work your way back.
Rather, our reservations about Bitcoin and about cryptocurrencies in general, are based on one simple assumption: governments do not like to be challenged in areas where they have a monopoly. Here’s how we responded to a regular reader earlier this week:
what I told a reader about Bitcoin up here… pic.twitter.com/RAP2uhAXVm
— Walter White (@heisenbergrpt) October 19, 2017
We’re going to stand by that assessment right up until the inevitable happens. What is the inevitable, you ask? Well, just see everything said above.
Earlier this week, Bitcoin suffered its worst drop in a month after the CFTC released a new “primer” on virtual currencies. Although the Bitcoin crowd was correct to assert that it didn’t really say anything “new,” it did underscore the idea that governments are starting to get serious about cracking down.
Well, fast forward to Friday and make-believe space tokens moved above $6,000 for the first time:
Bitcoin is up something like 520% this year.
If you are in this for a trade and you are confident there’s going to be ample liquidity in the event something goes wrong, then more power to you. But if you are buying this as a bet on the future of the technology, you are a fool.
And here’s the thing. To the extent there’s a “well-meaning” way to call someone a fool, that’s how we mean it. We don’t wish anyone bad luck here. Rather, we just hope that anyone who is trading this thing understands that it is not going to go up in a straight line to heights that will obviate the need for John McAfee to “eat his own dick” on national television. On the contrary: in all likelihood, it is going to experience a harrowing collapse leaving everyone who bought at these dizzying heights holding… well… holding just their “own dick.”
if not, I will eat my dick on national television.
— John McAfee (@officialmcafee) July 17, 2017
— 24 (@Alttrade) July 17, 2017