It’s easy to be bitten by the infectious bug of an exciting investment opportunity – so much so, you believe it might actually change the world, whilst simultaneously making you wealthy beyond your dreams. It’s happened to me many times; i.e., dotcoms; junior mining stocks; bullion; and most of all, Bitcoin. However, aside from the fact that attempting to change a deeply ingrained status quo usually ends in failure – or at the least, takes a LOT longer than expected; numerous other factors can intervene to prevent your investment success, that have NOTHING to do with your principal investment thesis (like, say, that gold, or Bitcoin, will replace fiat money).
People like to mock my three decades of financial markets experience; but I’ve learned a LOT, and participated in essentially every major investment meme. This, while being a leading global commentator, with an expertise in sound money, market manipulation, inflation, and Central banking. From the 2000 dotcom crash, to 9/11, the 2008 crisis, and the 2011 mini-crisis, Central banks have been printing money and supporting markets at an accelerating rate – yielding the “everything bubble” that infected the planet for the past five years. Unquestionably, the crypto bubble was as much about unfettered money printing as philosophical change, or even the incredible technology behind it. Which is why, if Central banks have finally lost the ability to support the unsupportable, it’s very likely EVERYTHING will be caught in the deadly grip of deflation, just as it was in 2008 and 1929.
Quite literally, Central banks have taken interest rates to all-time inflation adjusted lows – and conversely, financial assets to all-time inflation adjusted highs; at a time when real economic growth is declining, and global debt levels, BY FAR, at all-time, parabolically rising highs. Consequently, they are finally losing control of asset prices – and the fiat currencies underlying them, from the Yuan, to the Rupee, to essentially all others, be they in the first, second, or third worlds. Stocks, bonds, real estate, commodities, Precious Metals, and cryptocurrency, nothing has been immune – and if the long-awaited, inevitable 2008 sequel arrives, don’t be surprised if “everything” falls a lot more.
So, for crypto investors focused solely on “crypto fundamentals,” keep in mind that aside from the risk you are wrong about such factors, there also may be a financial tidal wave in the process of enveloping ALL financial assets – physical, digital, and otherwise. Be very careful, and conservative – as with each passing day, it becomes increasingly likely the “everything bubble” – unquestionably, the biggest financial bubble in history - is deflating.