It ’s safe to say crypto is have renewed interest since the clank of 2022 . Bitcoin hit its highest cost since 2021 ( $ 52,500as of Thursday ) , theSEC ’s approval of spot Bitcoin ETFshas investors very excited , and the market place pileus for all crypto just breached$2 trillion . But everyone who ’s ready to FOMO their room into crypto should enquire themselves : Should we really be doing this again ?
The last time the crypto market was this hot was late 2021 , and things were looking very blushful in the creation of fake money . Bitcoin was at an all - time high of $ 69,000 and there were myriad video ads feature celebrities hawking crypto . Super Bowl LVI play ads that now endure in infamy with Larry David and LeBron James promotingFTX and Crypto.com respectively .
There are a lot of signs crypto history is about to repeat itself . Crypto ’s “ fear and greed index , ” maintain by Alternative.me , has touch its highest “ greed ” grade since November 2021 , as Coin Telegraphpoints out . And Peter Thiel ’s Founders Fund reportedly bought $ 200 million Charles Frederick Worth of crypto starting last summer and bear on into the fall , according toReuters . That imply Thiel probably got in at a Bitcoin cost of around $ 25,000 , one-half of what it is today .
Peter Thiel, co-founder of PayPal, Palantir Technologies, and Founders Fund, as he holds hundred dollar bills during the Bitcoin 2022 Conference in Miami.Photo: Photo by Marco Bello/Getty Images (Getty Images)
Should you invest ? Not with any money you ca n’t afford to lose . Crypto is a Ponzi dodge . And you’re able to run a Ponzi schema as many times as you like , as long as masses are unforced to pass on over their money . Crypto defenders will insist figures likeSam Bankman - Fried , the convict head of collapsed crypto company FTX , were just big apples . SBF was convict on seven count of hoax and conspiracy in a extremely publicize trial that make regular people to lose faith in crypto . But the world is that the full crypto enterprise is a house of cards . Nobody has yet delivered a corking use case for crypto beyond purchase drugs on the darknet or other highly illegal activities .
In fact , the U.S. Treasury Department just released areport on Tuesdayabout how pop crypto is with human traffickers and producers of tike sexual exploitation textile . Bitcoin is the digital currency of choice for the trash of the Earth . And it simply does n’t run well as a currency because of its extremely volatile nature . Why would you pass Bitcoin to purchase a pizza if your Bitcoin might double in cost in a short span of fourth dimension ?
Bitcoin is such a crappy engineering that stablecoins needed to be invented in rescript to efficaciously trade in since the blockchain can only deal a fraction of the minutes that established fiscal networks like Visa can handle . That ’s where SBF got into trouble since he paid an old FTX investor , Changpeng Zhao in FTX ’s aborigine token FTT . And when Zhao tried tocash out this token — which , again , was fake money created by FTX — it tipped over the first domino from which FTX never recovered .
But you do n’t postulate to take advice from me . I ’ve been skeptical of cryptocurrency for geezerhood and still believe it ’s manner overvalued . But I also thought it was overvalue back in 2019 when the price of bitcoinwas $ 5,000 . If you ’d bought at that cost five long time ago and held onto it without sell , you ’d have ten times your money today . The problem , which is superposable to the problem of the stock market , is that you need to be able to time the market . Buy low and trade high , as the age - old saying goes .
Thiel buys depressed and trade high . But the world does n’t learn about the timing until well after the fact . If story is any usher , the toll of Bitcoin is likely to zoom in the close future , just as it ’s on a steady uptick mighty now , cause a lot of multitude to buy at the elevation . That ’s when guy wire like Thiel will sell , just before the next inevitable crash .
If you cogitate you may time the market and make some money on crypto , good for you . Make your money . But as bitcoin ’s price potentially inches ever closer to that all - meter highschool of $ 69,000 achieved in late 2021 , most people are going to be flummox buying Thiel ’s overpriced bags and selling after another crash out of frustration . Thiel has belike already doubled his money with the current price of Bitcoin . And we wo n’t sleep together for a long while when Thiel will die his position . When the populace does know , it will almost certainly be too late .
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