​James Steele IV - on August 13, 2018

 

Somewhere along the way, investors have collectively forgotten the name BERNIE MADOFF. He ran a multi-billion dollar Ponzi scheme and duped many of America's richest celebrities for over 20 years, and then literally made off with the money. Yet somehow, ordinary investors are constantly taken in by the lure of get-rich-quick schemes. Do you honestly believe that the elite bankers of the world, now centralized in Europe and the IMF, are really going to allow regular folks to have a decentralized "people's money" in the form of crypto-currencies, and allow them to make never-ending increasing returns on their investment that can't be tracked, taxed, or controlled by central banks and governments? After all, these evil empires run by the Rothschilds were built up over generations by fomenting wars, funding both sides of the debt, and bribing politicians to sign away their nation's sovereign money-printing function so as to tax the citizens endlessly for the incurred war debts. It may seem to the financially less educated that this rebellious plan is working for now, but it won't be allowed to continue over the long-term. Please, read on...

 

If you are one of the millions of people worldwide who have fallen for some sort of get-rich-scheme in the past, then you have likely fallen for the ponzi scheme known as cryptocurrency too. We have had numerous clients ask us about investing in this new asset class as a way to earn fantastic returns, hide their money, transact more quickly, and to "screw over" the central banks.

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Well, the old adage "There is a sucker is born every minute" must certainly be true.

 

With all my degrees in Finance and Economics, I was initially sceptical about cryptos and unable to wrap my head around the logic of why people would fall for this obvious pyramid scheme, as I also wondered why the governments hadn't yet shut it down. Yet the arguments and explanations I heard from my non-finance educated clients seemed seductively appealing. I thought, perhaps they have learned something from someone in currency trading that I missed about supply / demand economics, currencies, or investment opportunities outside my field of expertise. Admittedly, I was intrigued, so much so, I was about to take a risk-on trade for $5000 and hope that they have been informed by some insider who has facts on currency economics that I somehow missed. That was until I began my research in September 2017. 

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After doing a few months of research, watching the markets triple in just 3 months to astronomical heights for the rights to purchase a bunch of electrons, and recalling the lessons learned from the dot.com bust of 2000 which I experienced first-hand, I began sternly voicing my opinion on social media about what I saw and what other financial experts (not the crypto-experts / con artists) were saying about cryptos. Based on well-researched information and my own financial expertise, for most of 2018, I have been predicting that Bitcoin will end the year at $3600 USD (UPDATE: it achieved this mark on November 24, 2018) and the majority of the crypto market will fall 90% or more from its peak of nearly $900 million ($124 billion as of the same date). Should bitcoin and the entire industry reach those marks, the majority of the small investors who bought this digital scam will be in severe negative territory at which point, many of them will capitulate and head for the exits to try to cut further losses. This is when the rest of the space will be decimated with the majority of coins and hedge funds closing down. Much price manipulation will continue as the whales try to re-inflate the bubble to draw in ever more suckers who think the bottom is in. This dead-cat-bounce will be very tempting to most investors but will be the death of them too. The whales are trying to cash out and maximize every dollar they can before the gig is up. Greed, corruption, scandal, and a lot of tears will be the end result. There is a hard belief in the industry that the floor is $6000 and will not drop below that key threshold. I beg to differ. Once Bitcoin drops through the hard bottom down to $3600, the resulting panic will drive it down to $600 where it will languish within a couple hundred bucks trading range for years before becoming a faded memory of what might have been.  It is all an illusion folks, and the desire for get-rich-quick schemes will never fade from the human psyche. But that doesn't mean you need to be a victim, or worse, entice others into scams that will cost them money too, and lose you some valued friendships at the same time. 

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I will continue expanding on this article with relevant crypto-related insights that will certainly shatter your view about what these digital assets really are, who I believe really started them, and why.

 

Stay tuned...

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FINANCIAL WISDOM: If it sounds too good to be true, it probably is!