By Bob Moriarty | 15 January 2018
321 GOLD — The “Everything Bubble” is bursting. This is going to get ugly.
I suspect it began with the top in Bitcon and the other 1300-1400 related pseudo currencies back in December. I did an interview in the first week of December where I said Bitcon was in a bubble. I believed it would do the same thing every other bubble in history did. It was going to crash and take all the money of most of the investors. The piece was posted on the 10 th of December. When I did the interview, Bitcon had been going virtually straight up for months and was about $16,858, a new high.
The interview allowed for comments. There were 136 in total. I just went through them to read what people were saying. 65% were convinced I am nothing but a senile old man long past his prime who doesn’t understand that “This time it’s different.” That may well be true, Barbara reminds me half a dozen times a day I’m a senile old man. She may well have a point. But as I pointed out in Nobody Knows Anything, “This time it’s different” is the bell they ring at the top of every bubble. The book has been out for almost two years now and it’s still selling hundreds of copies a month. There must be something to it.
I did yet another interview on Bitcon and the pseudo currencies that went up on the 13 th of December and I made it perfectly clear that we were at a top and the bubble was about to burst. I made an interesting comment that can only be appreciated in hindsight, “If Bitcoin is $50,000 in a month then I’m obviously wrong. I’m either right or I’m wrong, it’s really simple. But I’ve never seen a clearer bubble than Bitcoin, this makes the Florida land boom and even the dot com bubble look tame by comparison.“
John McAfee made an even more interesting comment quoted in the same article that will grow with time when he said, “Bubbles are mathematically impossible in this new paradigm. Gold is laughable compared to cryptocurrencies. How do you fractionalize gold? How do you ship it? It’s physical so how do you safely store it. It was good for people 3,000 years ago. Today it is inherently worthless. Soon it will drop in value as crypto currencies climb.”
It is a month later. One of us got it dead right. And regardless of McAfee’s IQ or wealth for him to say, “bubbles are mathematically impossible in this new paradigm” goes beyond stupid. That is shit house rat crazy. He needs to go to Amazon or any bookstore and spend $15 to learn about bubbles in history and how human behavior never changes. […]