So much for the cryptocurrency correction. Two days ago when bitcoin hit nearly $1,800 and the market capitalization of all cryptocurrencies nearly touched $60 billion, I wrote in my article entitled, “Coinpocalypse”, “I am now thinking it has dropped enough to start wading back in.”
And, it appears I nailed it almost down to the minute. As soon as that article went live, the cryptocurrencies began staging a comeback. And they continue to do so as we speak.
The total market capitalization of all cryptocurrencies increased from $60 billion to currently $88 billion for a nearly 50% gain in just the last 48 hours.
Bitcoin is up over 10% in the last 24 hours while Ethereum has skyrocketed 38% and all major cryptocurrencies are heavily in the green.
Of course, in the midst of the pullback, Mike “The Health Ranger” Adams was quick to jump on the opportunity to throw up an article entitled “Health Ranger warns: Bitcoin collapse now under way… has already plunged nearly 40% from its high.”
So much for that. He is already wrong just 24 hours later. Really, stick to the vitamins.
In his most recent, totally wrong article, he calls bitcoin an “unraveling Ponzi scheme.”
If he understood the history of Charles Ponzi and how bitcoin actually functions he wouldn’t be calling it that. Bitcoin cannot be a Ponzi scheme because:
Unlike Ponzi schemes, Bitcoin will still have value and continue to function even if no new participants join the ecosystem.
The purpose of using bitcoin isn’t to recruit new market participants.
And there is no centralized entity that funnels money up to the top.
The first main point in Mike’s article he warns to remember is: “Bitcoin isn’t backed by gold.”
Yeah, no one ever said it was Mike. Thanks for the warning though.
But, you know what else isn’t backed by gold? Federal Reserve Notes, which most people call dollars. You seem to have absolutely no problem taking dollars, though, for your health products.
He goes on to say bitcoin is backed by nothing at all.
To which we’d say bitcoin is backed in part by the power/electricity needed to produce it, in addition to the math and cryptography which are the basis of its value compared to fiat paper and gold.
And, not to mention, we live in the digital age. Almost every person in the world has a smartphone and internet access now. With that phone, you can have a bitcoin account (while many still remain without bank accounts) and can transfer money anywhere in the world for nearly free, nearly instantaneously and no government or other thieves can steal it.
When fiat currencies collapse… and they will… what is more likely to become used as money by the world? Gold coins? Or bitcoin?
The answer is blatantly obvious. Bitcoin. Try sending a gold coin to someone in China for the latest cheap techno gadget and see how well that goes.
Mike goes on to say that bitcoin is nothing but a digital fiat currency. Here, again, he shows his complete lack of understanding of money.
The definition of fiat currency is, “Legal tender whose value is backed by the government that issued it.”
Bitcoin isn’t legal tender in any country I know of. And bitcoin certainly isn’t backed by a government that issued it.
So, totally wrong again Mike. Keep trying though… I can’t believe how you stick with it!
He also says bitcoin has a big problem because “one of the ‘fixes’ being discussed by the bitcoin community right now might result in lifting the limit of 21 million bitcoins, allowing potentially unlimited future Bitcoins to flood the marketplace.”
It’s unclear if Mike is talking about the potential bitcoin fork creating a second coin which will result in the expansion of the supply of the second coin. If that is what he is referencing, then he should realize that when Ethereum forked, the combined value of the two ethereum coins ended up being greater than the single ethereum coin that existed before the fork.
And, besides, why would bitcoin “flood the marketplace with potentially unlimited future bitcoins”? Most of the reason bitcoin is so valuable is because it is so limited.
Why would bitcoin commit suicide by just removing the limit? And why would anyone accept that change?
They wouldn’t. No one is even discussing this as a possibility because it is so outside the bounds of reality.
But, Mike “The Bitcoin DeRanger” Adams seems to have dreamed up a new reason for his audience to completely miss out on an evolution in money and banking that is making a lot of people a fortune.
In any case, with cryptocurrencies haven risen nearly 50% since Mike declared them dead, they probably will have a pullback in the coming days.
Take that opportunity to load up and subscribe to The Dollar Vigilante newsletter HERE. We’ll be discussing where cryptocurrencies go from here and where the best buy and sell areas are located.
And, if you subscribe now you’ll get access to my most recent cryptocurrency pick which I think could be the next Ethereum. We recommended Ethereum at $2 in 2016 and made a 20,000% gain since. And I expect this new cryptocurrency could perform even better.
So, yeah, if you want information and analysis on cryptocurrency investing and speculation, you can stick with The Dollar Vigilante which has been covering bitcoin since it was $3 in 2011… or go with the vitamin guy who knows nothing about money, finance or economics.
You can add him to the 140 others who have declared bitcoin dead to date.