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June 26, 2018 - Health Ranger - Mike Adams
11:55
How to explain the Bitcoin BUBBLE to young people
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Mike Adams.
The amount of drugs that people take is 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.
I posted a really interesting and informative story at bitraped.com.
It's entitled, How to Explain the Bitcoin Bubble to Young People.
This is a very important story to read if you want to understand the Bitcoin phenomenon and what's behind the bubble and what's behind all the young people who are absolutely convinced that they're never going to have to work a day in their lives because all they have to do is keep buying Bitcoin and they think they're all going to be billionaires.
They literally believe this.
And as the story points out, every generation thinks that they're smarter and wiser than the generation before.
And you and I thought this too, probably, when we were young.
All of us did.
It's a normal part of being young, thinking that old people don't know what they're talking about and they're stupid, but young people are new and innovative and this time it's different.
And so with Bitcoin, all these young people, many millennials and even younger, believe that they have stumbled upon a magical perpetual motion wealth generator, a magical machine.
They can stick their hand in the machine and just pull out money endlessly, without effort.
This is the key.
No effort needed.
You just buy Bitcoin and you just sit on it and it just becomes so valuable.
It goes up 100,000%.
They also believe that the logarithmic increase in Bitcoin will continue in perpetuity.
Now, granted, most of these young people can't even spell the word perpetuity, but they nevertheless believe that's how this works.
They think that logarithmic increases in asset valuations will continue forever.
And they don't realize, of course, that every generation before them Got nailed by a bubble, going all the way back to the tulip bulb mania of the 1600s.
And even before that, there were bank runs in the 1920s.
Well, actually, throughout the first half of the 20th century, there were lots of bank runs.
There was the railroad bubble and bust of the 1800s, sort of the mid to late 1800s.
There have been numerous stock market bubbles and busts throughout the 20th century, including, of course, culminating with the dot-com bubble that burst at about 2000 to 2001.
The housing bubble that burst.
And now, of course, the Bitcoin bubble and also a stock market bubble, real estate bubble, and bond market bubble on top of the Bitcoin bubble.
And what all these bubbles have in common is that people follow a herd mentality and they convince themselves that this time is different.
That's the key.
This time is different.
And they always have a reason.
They tell themselves why this time is different.
You look at real estate bubbles that are localized to geography, such as the Tokyo real estate bubble of the 1980s, which ended in total disaster in 1989.
And what did the Japanese citizens tell themselves about Tokyo real estate?
Well, they said this time is different.
Why?
Because they said Tokyo is the innovation and finance center of the world and that real estate here is going to be more valuable forever and ever and ever.
And thus it can never go down and keep buying and keep buying.
And then year after year, the prices kept going up.
So they told themselves, see, they're right.
We're all right.
It keeps going up, so it must do this forever.
So, even though the Japanese real estate bubble was a logarithmic increase in market valuations, they told themselves that this was going to be sustained forever.
Of course, it all crashed in 1989, and to this day, I don't know if you know this, but the Nikkei, I think, still has not recovered.
Here it is.
2017, right?
Still has not recovered.
Almost 30 years later, Has not recovered, or maybe just has now recovered to the level it was in 1989.
Basically half a lifetime to recover from that crash.
Interesting.
But people tell themselves this all the time, that this time it's different.
So now with Bitcoin, people are saying, well, this time it's different.
It's crypto.
They have a reason.
You know, it's crypto!
And then they launch ICOs.
Now, an ICO stands for initial coin offering.
And what it is, is when a young person has a stupid idea, they put it on paper, they call it a white paper, and they email it out to all their friends or post it on social media and say, we're going to offer coins, man.
And then they raise $100 million worth of crypto coins because everybody else out there is too stupid and too lazy.
They don't want to miss out on the next big thing.
So they don't do any homework.
They don't do any math.
They just jump in and they buy a bunch of Bitcoin to pay for the ICO. And then this ICO company, more often than not, has no assets, no software, no employees, no workable idea to actually make money at all.
And many times they don't even issue coins at all.
There's one comment that's being sued right now, in fact, over this, and there's also been a collapse in the valuation of Bancor, which was one of these ludicrous ideas that had just this incredibly stupid business model idea that was basically, the whole business model was basically, we're going to buy Bitcoin and average it out and make money selling it.
You know, really?
That's your business plan.
Okay.
So a lot of young people believe that they will literally never have to have a job in their lives.
They don't think that, I mean, wages are for old people.
This is something they say.
They don't think that anybody should ever have to work if you just buy Bitcoin now.
They don't even need to go to college.
They don't need a skill set other than buying Bitcoin.
And one great example of this is there's a pole dancer in Australia now who, That's a young lady who's a professional pole dancer, and she has discovered Bitcoin, and she is now a Bitcoin guru.
So she was a pole dancer, now she's a Bitcoin guru, and she has tripled her money, she thinks, by buying $5,800 worth of Bitcoin, and it's now worth $17,000 plus, she is now a guru.
So she has a Bitcoin advice website now to help other people make money in Bitcoin.
You know what her secret is?
Stay calm and keep buying Bitcoin.
This is literally the secret to success of the new millennials.
Just stay calm.
It's going to go up and down.
You just have to keep your wits about you and just keep buying Bitcoin because it's all going to go up a million, billion times.
You're all going to be gazillionaires.
This is literally what these people think.
So it's very entertaining for those of us who have been around a while and we've seen crashes and booms and busts and we've seen the cycles of human psychology And we know what's coming.
We know that whereas, you know, a bank has the FDIC for insurance and a bank has a fractional reserve system where there's at least some level of reserves in the bank, that Bitcoin has no reserves, no insurance, no FDIC coverage, no assets, no intellectual property, no corporation, no individuals, no government approval, that when Bitcoin crashes...
Everything is lost.
You're screwed.
When there's a run on Bitcoin, it collapses faster than any other bubble in history.
We know that because we've seen this kind of stuff happen before, but now Bitcoin has made it all much faster, so the crashes can happen more quickly and more violently.
And we know that when this next generation of young people experience this, they're going to get a very valuable education.
An education in reality.
And the reality is, there is no such thing as a sustainable, magical, wealth-generating machine that can exclude you from the whole equation of having to contribute to society in some meaningful way.
That Bitcoin is a Ponzi scheme.
That Bitcoin is a fad scheme.
Just like the dot-com bubble was a fad, you know.
In fact, when dot-com, when you started hearing taxicab drivers become stock-picking gurus because all the stocks were going up as long as they had dot-com in the company name, that's when you knew that it was about at the top.
It's kind of like when you have, you know, pole dancers becoming Bitcoin investment guru advisors.
You're getting close to the top.
It's kind of like in that movie, The Big Short, which I strongly recommend you watch.
When strippers were buying multiple condos on, what was it, variable interest rate mortgages with no money down, that's when they knew, yeah, this is a bubble, this is going to crash too.
Anytime you start getting incredibly unqualified people saying that they're experts because everything they pick keeps going up, No matter what market you're in, that's when you know that you've about hit the top.
There's going to be a violent correction.
A lot of people are going to get hurt because real investing isn't so easy to do in an actual normal market which has booms and busts cycles.
And that's what young people today have never seen.
They've never seen a down market.
So they don't understand that a normal market swings up and then down, that there are corrections, that there are crashes, i.e.
busts.
Young people today have never seen it.
They literally think that everything that they buy will go up and up and up and up forever, and that's normal and that's the way it's going to be.
And they've figured this out, and they're incredibly clever to have discovered this, and they wonder why their parents and grandparents couldn't have figured this out.
And yet their parents and grandparents lost money on the dot-com bubble, you see, and other bubbles before that.
So it's all the same history being repeated over and over again.
It's going to be interesting to maintain some knowledge and awareness about all this.
Just read bitraped.news, which is one of my websites.
My main website is naturalnews.com.
You can check that out.
And by the way, just for the record, I am pro-cryptocurrency.
I love the idea of peer-to-peer decentralized currency.
But more and more, Bitcoin isn't even very decentralized.
It's controlled by a very small number of individuals, by the way.
Maybe I'll cover that in another podcast.
But overall, Bitcoin itself is headed for a massive crash, although cryptocurrency as a concept has a very strong future.
It just probably isn't going to be Bitcoin.
It's probably going to be a government-approved, tracked, you know, identity-linked cryptocurrency that the IRS is tied into.
That's the most likely scenario of the future of crypto, at least in the Western world.
We'll see.
We'll see what happens.
Thanks for listening.
Mike Adams here.
Take care.
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