Tuesday
Good heavens, the crypto space is imploding.
Who could have seen that coming?
Excuse the sardonicism, but really!
Are cryptos down and out? Probably not; it takes a bit more than a mere dawning reality to kill a bubble of such tulipesque proportions.
What is down and out is the idea that cryptos (Bitcoin in particular) have taken over from Gold as real money. No intellectual debunking has the weight of a marketplace collapse.
Having written that, I would point out that to dismiss cryptos as entirely without function or merit is untrue.
When capital controls are imposed in the Western world, and they will be, Bitcoin will be one of the very few ways of getting your wealth out of one jurisdiction and in to another.
While there is no way of ensuring that the value transferred is the same as the value received, at least you will have got some wealth out.
Capital controls are the signal that the government knows that the jig is up and that they are about to extract the kitchen sink from their captive ‘citizens’. Why? To keep their own wealth intact for as long as possible.
People judge prosperity by how much wealth they have. Governments, and all those who aspire to governments, evaluate prosperity on the basis of how much tax they can gouge our of their human herd.
The instincts of those in governments are diametrically opposed to those of normal people.
Please do not read into this anything that says that you should purchase Bitcoin, or any other crypto. Please do be aware that unless your wealth is well hidden, or in some other way secured, you will be impoverished by a government that regards its own survival as far more important than your own.
Physical Gold and silver, well hidden, and which no one knows about, is a good start.
Real estate is no longer a good place to store wealth. We are approaching the point where even the family home will be taxed. It could even be based on capital gains – i.e. the faster that fiats fall in value, the more that your property will rise in fiat terms and the more that you will owe. ‘Investment’ properties – ha, ha, ha haaaa… oh stop it.
Caroline Ellison, the C.E.O. of the crypto trading house, Alameda Capital (owned by S.B.F.’s FTX) sums up the crypto space succinctly… “It’s mostly scams and memes when you get down to it”.