What will happen if the crazies take over and inflation goes hyper, turning dollars into pennies? A few billionaires are worried enough to go long on bitcoin. Some choose other cryptocurrencies. Even if worst comes to worst, they figure, bitcoin and the like might be tradable for goods and services.
Billionaires are ideal cryptocurrency investors – they can afford the risk. As for the rest of us, we do well to heed a warning issued on CNBC by Robert McCauley: Investing in crypto is worse than investing with Madoff.
McCauley's reasoning: Eventually Madoff’s victims have had most of their losses returned to them. If bitcoin bites the cosmic dust, there’ll be nothing left but unpaid electric bills.
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1 comment:
I agree that crypto is a fool's investment for amateurs trying to exploit the greater fool theory. I'm sorry that some banks are giving it legitimacy. Crypto has a legitimate role in countries without stable currencies, but is otherwise a hobby like Beanie Babies.
The Madoff investors were very lucky to receive any of their original investment back.
Most of the electricity for generating crypto comes from coal being burned in China.
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