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June 13, 2018 - Health Ranger - Mike Adams
18:25
Bitcoin DELUSION is self-reinforcing
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Mike Adams.
The amount of drugs that people take, it's absolutely shocking.
Most people are on drugs.
The Health Ranger Report.
Everybody's worried about the zombie apocalypse.
It's already here, people!
It's time for the Health Ranger Report.
And now, from naturalnews.com, here's Mike Adams.
As Bitcoin has blasted through $7,000 per coin, skyrocketing several hundred percent this year alone, I'm reminded of an interesting fact about bubbles, that people who participate in bubbles always take the rising price of the bubble asset as proof to them that they're not in a bubble.
In other words, the people who are invested in Bitcoin right now, by the way, you can't even really use the term investment, Which I'll explain later, but the people who are, quote, invested in Bitcoin have convinced themselves that because the price keeps going up, it's not a bubble.
Which is fascinating and a bit disturbing because, of course, the very definition of a bubble is that the price keeps going up irrationally without underlying fundamentals supporting the value.
And this is exactly what's happening with Bitcoin, and this is exactly as I called it.
I said Bitcoin could go up to $10,000 or even $100,000 per coin.
Long term, it's headed for zero.
Bitcoin has no long term future, although cryptocurrency does, in my opinion.
But Bitcoin is going to crater.
However, before it craters, it could go very high.
It could go to $50,000.
It could go to $100,000 a coin.
Maybe it could go higher.
Or it could just crater.
You know, before it hits 10,000.
It's hard to say.
This is the thing.
I've talked about the psychology of bubbles before, how it's dangerous to try to play the bubbles either on the upside or the downside because you can never second-guess human psychology.
It's irrational.
And this is what we're seeing with Bitcoin.
Now, here's something really crucial to understand about Bitcoin.
Right now, you see, when bubbles are going up, everybody's buying in, and the price keeps rising, and everybody is feeling great because they think they're making money.
Of course, it's not real money until they sell the Bitcoin and get actual currency in whatever country they're living in, or sell the Bitcoin to buy actual land or actual gold or something that's real, something physical.
So just having Bitcoin credits is not real money.
It's potential for money, but only if you can find a willing buyer of Bitcoin.
Which, as markets are rising rapidly, as the bubbles are forming, it's easy to find new buyers.
Because there are far more buyers than there are sellers.
That's what creates the demand, obviously, that causes asset prices to rise.
That's part of the definition of a bubble.
However, at some point, every bubble comes to an end.
And when that happens, the number of sellers rapidly increases where the number of buyers collapses.
So you've got a lot more sellers than buyers in that case, and then the prices rapidly collapse.
They collapse very quickly.
And this is another big mistake that Bitcoin holders are making right now.
Every person who owns Bitcoin Thinks that every Bitcoin they own is worth the $7,000 high price.
And yet, that is an illusion.
Because the minute people start selling Bitcoin, prices plummet.
Everybody can't get out at the highest price.
In fact, it's not even close to everybody.
It's more like 1-2% can get out at the high price.
Everybody else is going to...
If they're forced to sell, they're going to take a lot less.
Some might end up having almost zero in a collapse.
And we've seen this over and over again.
We saw it in the dot-com bubble and the dot-com crash of 2000, 2001.
And by the way, that's a very important historical reference to all this.
I've studied history.
I've studied financial markets.
I've studied bubbles and collapses.
And it's a repeating cycle, and every new generation has to go through it.
Every new generation thinks that it is smarter than the generation that came before it.
This is true when you and I were young.
You know, our generation thought we were the smartest, but then our parents' generation thought they were the smartest, our grandparents' generation thought they were the smartest, and so on.
You can go back to the railroad stock bubbles of the 1800s, and those people thought they were geniuses too, and they were all going to discover this magical wealth-generating machine called railroad stocks, and they all thought they were going to get rich doing no work.
They could just buy railroad stocks and get rich.
Well, a generation ago, we had the dot-com boom.
And, you know, I'm old enough to have lived through that and to have witnessed day to day the way people thought and the way people behaved during the dot-com boom.
And it is exactly what we're seeing now with Bitcoin.
During the dot-com bubble, people told themselves that they were never going to have to work again.
You had taxicab drivers who were buying.com stocks and getting ready to retire from driving taxicabs because they all had this incredible wealth on paper.
On paper, they were all buying.com stocks, stocks like DrCoop.com or Excite or others, AltaVista.
Now, if you don't even recognize those names, that's because they collapsed.
That's because people lost billions of dollars in those.com stocks that collapsed, and they went to zero, essentially.
And you've never heard of those companies since then because they don't exist.
You know, one day, a couple generations down the road, nobody will know what Bitcoin is because it will be long gone.
It will have collapsed and there'll be some other cryptocurrency that will be the successor to it and so on.
But the point is, in the dot-com boom, you heard the same logic that you're hearing today with Bitcoin.
The same logic.
Which was that, oh, we're younger, because today it's usually the younger people who are buying Bitcoin and promoting Bitcoin.
And the younger people always think they're smarter than everybody else.
They think they've got it all figured out.
And today's youth in particular is especially narcissistic and very selfish and very greed-oriented more than any other generation before.
And today's youth believe that they are the first generation that will never have to work a day of their lives.
Which is a good thing because most of them don't know how to work.
They don't have a work ethic at all.
They don't have any real-world skills.
Their skills consist of rapid-fire Snapchatting, you know, Some social media activity, but living in their virtual worlds on their iPhones and mobile devices, and then buying and selling Bitcoin and thinking they're geniuses in exactly the same way the dot-com people thought they were geniuses in the 1990s.
And if you go back to the 1990s, I remember I knew a young man back then who was doing some work for our company.
And one day he came in and he said he was tendering his resignation for our company.
And I don't know how much we were paying him, you know, 15 bucks an hour or whatever it was back then.
And he rendered his resignation.
And I asked him why.
Why are you leaving a good job?
You know, you're getting decent pay here.
You're a young guy starting out in the industry.
You're learning some skills.
Why are you leaving the company?
And he said that he had discovered the secret to becoming a multimillionaire overnight by investing in dot-com stocks.
And he explained to me that he had been watching CNBC and he had been listening to Jim Cramer.
And Jim Cramer told him which stocks to buy.
And almost everything that he bought kept going up.
And I said to him, I said, well, you know, these valuations, these price-to-earnings ratios are sky high.
There aren't underlying assets, even intellectual property assets in these companies to support the prices that you're paying.
He said, it doesn't matter.
This is a new paradigm that I was too old to understand it.
And I wasn't even very old at the time, you know.
He was younger than me by like six years.
He thought he was the new young generation.
You people are too old to understand it.
We are the new young people, the genius young people, and we have a whole new paradigm of how to earn returns in the stock market without ever having to work again.
And he said, all you have to do is just buy everything and it goes higher.
And this was literally his thinking.
He thought he was a genius.
He thought he was a genius.
And so I don't know what happened to him after that.
He left the company.
He went off and, of course, probably lost everything within two years or whatever, whenever the crash happened after that.
And that happened to a lot of people.
There are many senior citizens who are working today in fast food or as Walmart greeters who had large savings, large retirement funds in their own private savings accounts That they had invested in dot-com stocks.
And for a while, they thought that they were going to retire as wealthy individuals.
They thought they had it all figured out that they were going to have millions of dollars to retire on.
And then it turns out it was all illusion.
The whole thing crashed and cratered.
And of course, I warned people about that starting in 1998.
And I warned people throughout 1999 and throughout 2000 and so on until the crash actually took place.
And during those years, I was condemned in the same way that I'm attacked by Bitcoin promoters today.
People said, oh, you're being pessimistic.
Why are you so negative?
You should be more positive.
Just join the party.
Everybody's doing great.
Just talk about buying more dot-com stocks or Bitcoin or whatever.
Just get on board, man.
Why you gotta be such a party pooper?
You know, this is the same thing back then as it is today.
And what I find that's in common here...
Is that anyone who is rational, anyone who can do math, who understands finances and risk and assets, is always condemned by the bubble pushers.
Because the bubble pushers don't want reality to break their bubble.
Because obviously everybody who was promoting and hyping the dot-com stocks, they were, at least on paper, making money off the dot-com boom.
Same thing with Bitcoin today.
Those who are promoting Bitcoin are making money, at least on paper.
Well, not physical paper, but in the shared online ledger, they think they're making more money because Bitcoin is going higher than In terms of supply versus demand and the market price for the currency.
And yet, and yet, we're already seeing early signs of the collapse of the cryptocurrency hype.
For example, multiple large-scale ICOs are already in a state of collapse.
And one of the biggest ICOs, called Bancor...
Which was massively overhyped.
Never had a revenue model that made any sense to anyone who could do math.
It's a bunch of these millennial tech people talking total nonsense to each other, hyping up ideas that don't work.
And Bancor's entire business model is a hoax.
I've looked at it.
I've talked to people who know about it.
Bancor will collapse, and it's already, I think its value is down 50% since the early days of its ICO. So it's already plummeting in a state of collapse as I'm recording this.
And this was heavily, heavily hyped.
I think they raised, I don't know, something like $250 million worth of Bitcoin value in an ICO. So they're collapsing.
And we're going to see more and more of these ICOs collapsing.
And at some point, although again, I warn you, we can never predict exactly when it's going to happen.
At some point, we're going to see Bitcoin collapse.
And that day, it could be a week off, it could be five years off.
You know, it's really difficult to tell with these things.
For example, I started warning about the dot-com bubble in 1998, and it crashed, you know, two and a half years later, something like that.
So these things can take a lot of time.
Usually I'm very early on these things.
You know, I sold my Bitcoin at around I think $2,500 per coin.
I got out.
Because I realized early on, you know, being someone who has seen this before and having self-discipline and maturity when it comes to avoiding risk, I saw that this thing's going to crater at some point.
And since I can't predict when it's going to crater, I'm going to get out now, convert my Bitcoin to physical gold, which is exactly what I did.
I actually bought gold with the Bitcoin that I had.
And I kept, I think, like one quarter of a Bitcoin.
And I think I still have that sitting around on my wallet somewhere, a quarter of a Bitcoin, which I'm just keeping around for no particular reason.
It just didn't work to sell it for gold.
But I have physical gold.
And the thing I like about gold, by the way, the Bitcoin promoters, these millennial delusional Bitcoin promoters, they call people who like gold, they don't call them gold bugs, they call them old bugs.
Which, again, is another big clue that we're talking about a generational gap where young people think that older people are stupid.
In fact, older people have the wisdom to not get screwed over by all of this because the older people have seen this before.
And it was called the dot-com boom and crash, by the way, the dot-com bubble.
So those of us who are older, we've seen this before.
We have the wisdom and experience to not get clobbered by this.
But young people...
Because they're not old enough to have lived through the dot-com bubble.
They never saw it.
And again, they are, you know, delusional and arrogant, as most young people are.
And they think that they've figured out a whole new way, a whole new system.
That none of them will ever have to work again.
They can just invest in Bitcoin and get rich off of that.
As if Bitcoin is a magical money generation perpetual motion machine.
So there you go.
It's going to be fascinating to see how the narrative changes as this collapses.
And again, that could be several years off.
I don't know.
But at some point, Bitcoin will crater.
Now again, I'm very much pro-cryptocurrency in the long term.
I believe that cryptocurrency is a very genius kind of invention.
I think it has a bright future.
I think there will be other cryptocurrencies that perfect the model That Bitcoin launched, but Bitcoin has a lot of problems.
Scalability problems, mining being a big problem, power consumption being a huge problem, and so on.
Bitcoin is hard to scale.
And so many hard forks add uncertainty because they can change the software at any time.
And they have changed the software already more than once.
So Bitcoin does not have a mathematical limit on the number of coins that can be created because the math, i.e.
the software, can be changed and has been changed several times already.
So it's not a fixed limit.
It can be changed.
So keep all of this in mind.
You know, gold can't be changed.
Gold is physical.
Gold is real.
Gold is an element of the cosmos.
Gold exists on other planets and asteroids all around the universe.
Bitcoin has only been around a few years.
Gold's been around for billions of years.
And gold isn't going anywhere.
So one day, all these young people who called gold people, you know, old bugs, are going to realize, huh, maybe they actually had a better grasp on this thing.
So we'll see.
In the meantime, read my website, bitraped.com.
We'll be covering the Bitcoin collapse whenever it happens, and I'll keep you informed on all of this.
My advice is to avoid getting into Bitcoin right now, but do keep an eye on cryptocurrencies in general because there will be other opportunities In the near future probably, perhaps Ethereum, perhaps Zcash, other cryptocurrencies that are smarter, that are more scalable, that have more privacy such as Zcash, that could do very, very well, even if Bitcoin craters.
So that's what I'm anticipating.
There's going to be a future cryptocurrency that will do very well and could become widely accepted.
But it will probably be a cryptocurrency that's launched by a J.P. Morgan or a central bank or an Amazon.com or someone like that that has major backing from either a government, a banking institution, or a large retailer like Amazon.
If Amazon launches its own cryptocurrency, it's over for Bitcoin.
On the other hand, if Amazon adopts Bitcoin, then that would be a huge boon to Bitcoin, and it might send its surging to $100,000 a coin.
It's hard to say.
A lot of uncertainty in this, so stay informed.
BitRaped.com and my main website, NaturalNews.com.
Thank you for listening.
Be safe, everybody.
This is your money you're playing with.
You need to watch it.
Don't lose it.
Don't get caught like the dot-com people got caught.
Take care.
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