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733,706 Cliptocurrency Accounts Fly to Bitcon Heaven in 24 Hours

Bob Moriarty
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May 24, 2021

I did an interview recently with the lovely Michelle Holiday before the latest fireworks from the Cliptocurrencies. Michelle wanted to make a valid point that people have made a lot of money investing in what I believe are electronic Beanie Babies. Of course my response was that we hear from the people who have made money in the scam but not from those who lost money. In my view there are a lot more of those.

In any interview I do, what people respond to with the most negativity is me talking about how much money is going to be lost in a bubble of an asset of zero redeeming qualities other than FOMO.

The cliptocurrencies aren’t limited. In December of 2017 when I called that top back then there were about 1,300 of the creatures. Today there are 5,379 as I write. Limited? I doubt that. I may have turned old but I didn’t turn stupid. And we hear that they are anonymous. Yea, right. Tell that to the IRS who are busy collecting the names of everyone who do a transfer of over $10,000. That is going to bury the IRS in papers with tens of thousands of required forms submitted every day. And that you can buy your drugs without anyone knowing. Yea, sure.

There is the ever-popular FOMO. It’s not the very best reason to invest in anything. It’s the worst. That and Elon Musk ran the price of Dogecon up to $.725 two weeks ago. Now it stands at $.335. It had a market cap of over $90 billion. Do remember that Dogecon began as a joke. Actually it pretty much ended as a joke as well.

(Click on images to enlarge)

Other than the obvious flaws such as I have pointed out above, there is the elephant in the Jell-O of the actions of Central Banks. Does anyone seriously believe the Central Banks are going to allow 5,379 independent electronic currencies to break their rice bowl? China has already put the word out. No trading in the cliptos. The rest of the world will follow. What was $2 trillion a month ago has lost $500 billion in value. It’s going to zero. $500 billion is actually a lot of money to have simply disappeared. The consequences will be felt very soon.

Some brave but clueless souls were trading the shitcoins on margin. When Elon Musk yanked the rug out from underneath them, 733,706 accounts containing originally $8.15 billion went to Bitcon heaven in 24 hours. (1) That’s a lot of money to lose and (2) ¾ of a million investors got wiped out. Do you really still think FOMO is a valid trading plan?

I live in a tiny cottage that is over a stream. Long ago it was a water mill and has been rebuilt. To remind me of what happens to all currencies, I have framed and hung a dozen or more of what used to be money. I have several $1000 Confederate war bonds. At the time they would have been worth 50 ounces of gold. Now you can get a nice one on Ebay for $50 or so. I’ve got Assignats from the French Revolution, a 50 trillion dollar Zimbabwe bill, some MPC that I used to use in Vietnam, a couple of Revolutionary War payment certificates and some Confederate money.

My very favorite is a payment receipt from the South Sea Company dated 1724. The cliptocurrencies may be the biggest bubble in history, but are still just one of many others where con men drag in the greedy and clueless and extract all their money. In 1720 it was the South Sea Company founded in 1711 and peaking in 1720 before collapsing and destroying the finances of tens of thousands of English investors.

Sir Isaac Newton would certainly rank as one of the most accomplished scientists in history. Not many still remember but he was also associated with the Royal Mint from 1696 until 1727 so presumably he understood finance and currency. He invested a large part of his fortune in the South Sea Company and made money. But looking around at all those around him who weren’t as smart but still were making fortunes in the South Sea Company, he reinvested in the prospect for a 2nd time. This time he got mousetrapped and lost his fortune. That led to one of his most famous quotes. “I can calculate the motion of heavenly bodies, but not the madness of people.”

Obviously he did not read my book Nobody Knows Anything or that wouldn’t have happened. I explain how to recognize a bubble and not lose a fortune. All you have to do is to do the opposite of what everyone else is doing.

If you think you are smarter than the man that even Einstein believed was the most brilliant man who ever lived, feel free to jump in and day trade the cliptocurrencies. If you are that much smarter, you might want to drop me a line, I always appreciate good investment advice.

If you are not smarter than Newton, plan on joining the ranks of the 733,706 as the remaining $1.5 trillion goes to Bitcon heaven.

We have entire groups who have been whining and howling about how gold and silver are manipulated and have been suppressed for over twenty years. No one is saying the same about the shitcoins but the sheer greed of the manipulators and conmen is a thousand times higher than with gold or silver. You are dealing with a totally crooked crap table. Do you really think that Elon Musk and John McAfee were not talking their book?

At least the real Beanie Babies had some intrinsic value. At the end of the day they were still $.99 stuffed toys for children. Cliptocurrencies can’t even claim that. They have zero real value.

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Bob Moriarty
President: 321gold
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