Bitcoin Cannot Get to Zero Fast Enough

Bitcoin Cannot Get to Zero Fast Enough

The stock market is coming off of its most recent highs quite dramatically, and CNBC is full of pundits trying to explain its fall and guess about its future.

People who loose money in the market today will no doubt have opportunities to recover their losses over time, depending on their time horizon.  The stock market may have moved to an extreme valuation, but it isn’t a fraud or a bubble.

What is clearly a bubble, however, is all of the coins and cryptocurrencies that have popped up.   I have been startled to see them advertised on Facebook (Facebook has since taken these ads down) and to see some of my LinkedIn contacts pushing all sorts of obscure worthless digital tokens.

It is also quite startling that the mainstream media has been celebrating bitcoin rather than pointing out where the fraud occurs.

The New York Times had a great article about fraud in the crypt space yesterday, painting a clear picture of the exchanges and the coins as an out-and-out con. 

But, let’s not forget that the rest of the mainstream financial media has been celebrating bitcoin. 

Bloomberg interviewed a child in his pajamas.

The CNBC Fast Money crowd recently allowed their platform to become an open discussion of bitcoin to etherium.

What is clear from the NY Times’ article is that bitcoin and all of these crypt currencies are going to be publicly exposed as frauds by the SEC and the Commodities Futures Trading Commission.  Many their hucksters may even wind up in jail.

There are going to be a lot of people who are going to be hurt and hurt badly in this in this arena.    With the mainstream media allowing a fraud to be perpetuated, the only protection for most investors is for bitcoin to go to zero before they are tempted by any of this. 

Ari Socolow
Ari Socolow: Ari Socolow is the Chief Economist and Editor-in-Chief at BestCashCow. He is particularly interested in issues relating to financial literacy and bank transparency. Since co-founding this website in 2005, Ari has been frequently cited in the media as an expert on local and national savings accounts, CD products, mortgage and loan products and credit card rewards products.
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