It is easy to get me going on cryptocurrency. I published my most recent statement about "crypto" on February 7th, in a blog posting titled, "One More Time." For a more extensive listing of my anti-cryptocurrency writings, you might want to check out my blog posting that provides the following advice: "Don't Bite."
Two articles from The Wall Street Journal have impelled me to write about cryptocurrency yet again. Yep! "One more time" (again).
If you would like to take a look at what set me off on today's blog posting, you can check out an article from the Saturday-Sunday, December 23-24, 2023 edition of The Wall Street Journal. Even more recently, click the following link for an article from the February 5, 2024, edition, "Financial Giants Race to Lure Investors into Cryptocurrencies."
A "Wall Street" adage, reported on in that December 23-24 article I just linked, definitely got my attention. Here it is:
Buy The Rumor. Sell The News.
This means (as I trust anyone reading this will understand) that the "value" in cryptocurrency is in the "rumor" that the price will go up. Putting your money in cryptocurrency, in other words, is 100% pure speculation. When the "news" arrives, and it shortly becomes clear that what has been hyped does not live up to that hype, the price will fall.
This is, exactly, what Hilary Allen said, as quoted in that "One More Time" blog posting. Allen is a law professor at American University's Washington College of Law, and an expert on financial regulation. Allen's exact words were: "There is no intrinsic value to any of this.... The only hope is to have more money sloshing around, and more people willing to buy into it to create demand..... (emphasis added)."
There are a lot of "Sports Betting Apps" now available. For instance: How much will the Warriors lose by (or win by)? Let's make a bet on that. If we guess right, we make a bundle. If we guess wrong, we lose. With cryptocurrency, it's just the same.
Since I have had friends and relatives who think of cryptocurrency as an "investment," and since major financial institutions are now advancing this theory, too, as reported in the February 5th article I linked, I keep sending out my warnings. Losing one's life savings, by speculating - and particularly when you don't actually realize that this is what you're doing - is not a happy way to live one's life.
So... don't call cryptocurrency an "investment." And..... Don't Bite!
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