Look, Bitcoin is a horrible piece of shit, ok?
And the reason we can say that so confidently is because it isn’t real. Like other investment “opportunities” that are based on “assets” or, more commonly, business models that are scam-ish, it offered spectacular returns to those who got in early. Hell, some of those folks are now filthy rich off it.
But the thing about scams is that they don’t last (well, unless Carl Icahn decides to take a stake just to spite Bill Ackman) and eventually, they collapse by virtue of being, well, scams. So it has always been and so it always will be.
Cryptocurrencies will prove to be no exception and although Bitcoin may be the last to collapse thanks to being the least scam-ish in the space, it too will go to zero (or basically zero) because in the final analysis, it’s not real in any “real” sense of the word “real,” ok? Ok. And also sorry. Sorry to have to tell you that again, but for fuck’s sake people, it should be self-evident.
But even if you want to go on thinking it is real, you need to come to terms with the fact that governments aren’t feelin’ it anymore. The thing about governments and money is that they rather enjoy their monopoly on legal tender and the idea that they are going to in any way, shape, or form cede that monopoly to a gang of anonymous netizens who congregate on Reddit in what amount to confirmation bias clubs, is fucking laughable.
Well as you know, it’s been a rough start to 2018 for Bitcoin. It’s down roughly 30% and some 50% from its December peak (when everyone was falling all over themselves to figure out if it was possible to buy Bitcoin on credit cards).
I hope you weren’t one of the people represented by the spike in that Google trends chart, and if you were and you found what you were looking for, I hope you took a minute to consider whether it was a good idea before ultimately admitting to yourself that you’d temporarily lost your mind. Because if you bought right there, you’re down by half and if you put it on your credit card and didn’t have the cash to pay the balance off in full this month, well then now you’re down by half and you’re paying an exorbitant interest rate on the purchase amount.
Ok, well Bitcoin and the rest of the cryptosphere didn’t need any more bad news after last Friday’s Coincheck theft and after the CFTC subpoenaed Bitfinex and Tether, but when it rains it pours and on Thursday, in his budget speech, India’s finance minister Arun Jaitley said this about cryptocurrencies:
The government does not consider cryptocurrencies legal tender or coin and will take all measures to eliminate use of these cryptoassets in financing illegitimate activities or as part of the payment system.
Translation: “fuck your momma, crypto crowd.”
Jaitley was more upbeat on blockchain, but the message here is loud and clear. As Reuters reminds you, “in December, Jaitley’s ministry warned cryptocurrency investors, likening such investments to Ponzi schemes.”
Sure enough this triggered a fresh round of selling across the space on Thursday with Bitcoin dropping to as low as $9,110:
Panning out, you can see how this is devolving rapidly into a train wreck in the new year with the notable exception of Ethereum:
“After today’s announcement, people are getting scared,” Anshul Vashist, Delhi-based support manager at the cryptocurrency exchange Coinsecure tells Bloomberg, adding that “we have seen some dumping of bitcoins.”
Yes, Anshul “has seen some dumping of Bitcoins” and make no mistake, if you keep hanging around in these “assets” you’re going to “see some dumping” too.
The only question is whether you then dump or inexplicably decide to ride this rollercoaster straight to zero.
