There is a book called “Extraordinary Popular Delusions and the Madness of Crowds”, written by Charles MacKay in 1841. The thesis of the book is that the majority is mostly wrong. When it comes to investing, there are always wrong. If they ever rewrite this book, there will be a special chapter dedicated to bitcoin called “Digital Tulip Mania”.
The number one investment rule is this:
“Parabolic moves end in tears”
Below is the monthly price of bitcoin for your consideration.
Print it out. Now compare it to the NASDAQ in 2001. Silver in 2011. Tulips in the 1600’s.
Can bitcoin go to 15K? 20K? 50K? Sure why not. Never underestimate the madness of people. However, the folks buying it now will never get out in time. They will hold on to it all the way to zero. Idiotic celebrities are tweeting about it. Everyone I know is asking me about it. When every Tom, Dick and Harry is telling you to buy, it’s not. It’s time to sell. When they say “This time is different”. It’s not. It’s just another top.