Great interview. Chris can be controversial - but he’s a smart guy.
Interesting comments by Simon Dixon “We’re in a bubble and the bubble is going to burst”… “What concerns me is all these retail investors losing all their money in ICO’s…”
Edit - FTR: no inference at all to Maidsafe. I dont consider MS an ICO. I do however consider the endorsements of ICO’s unnecessary.
We are in a bubble, and I too think it will probably burst - at some point - but I don’t understand the whole system (world economics and capital flows) and so can’t be sure. People have been predicting a crash in US equities for years (I’ve lost track of how long) and for seemingly sound reasons, but the reason it hasn’t happened is that while US stocks may be over valued, there is nowhere better to park big money for now. And with Europe still a risky bet, capital tends to prefer the safety of the US$.
So it really depends on who is investing in crypto, what they are using, and why. And I don’t know the answers to that.
And in any case, the only question that matters - when - is one that nobody can answer with certainty (or anything near it). It is timing that will determine who profits, who gets hurt, and how much in each case. Caution, preparation for all eventualities is advised.
Haven’t listened yet - I will - but is he saying btc is in bubble territory too? Or just alts?
I wonder if there is an alt crash whether some of that outflow would go into btc and prop it up.
I respect Simon but it’s hard not to read the view of various experts and come to the conclusion that no one knows. I see John McAfee believes it cannot possibly be a bubble. Though he is obv a bit of a nutter.
If there are bubbles everywhere then where realistically do any of us have to run?? I’m open to ideas, haha. I see parking equity in real assets with very minimal debt as a possible solution such as the housing market but I’m only just begging to learn more about that and that has bubbles too obviously hence minimally using debt for leverage.
The USD is the worlds most popular reserve currency. All foreign countries hold it for world trade - commodities, oil, etc. - China’s Central Bank told the IMF just after the crash in 2008 they wanted to decouple the worlds economy from the USD - reignited that discussion last year.
China proposes a currency that is “disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies”.
China is worried about the US economy for obvious reasons. The regular inflating is outrageous.
No it doesn’t mean you don’t buy Ico it means you buy quality Ico , not because somebody knows somebody
Fidelity’s chief investment officer would agree with you. This article is about 2 years old, but is still very relevant. As someone who used to work on the bond markets, I never thought I’d see the day when large parts of several government bond markets would trade at negative rates. Dominic Rossi suggests it’s due to a “savings glut”. Personally, I believe as risk appetite returns these savings will reallocate to the equity markets and the extreme levels of overvaluation in bonds will be replicated in stocks.
Not sure if you mean - why ? are they doing it… but you are prolly aware governments have an obligation to buy bonds, regardless of yield.
I think it pretty obvious that the new generation of ICO are all hype and little substance. my take on Simon is he thinks things are out of control. No one knows the exact date, but smart people know its inevitably. It could well start with regulator’s simply saying ICO’s are under review and spook the markets. Regulators think the public need protection from fomo, 2300 percent gains ( ETH) … I tend to agree. People buy hype but cannot sell on news like the old days. Insiders don’t protect investors, regulators do. Crypto is all insiders.
Yep, I’ve watched it now. Am glad to see him railing against the less scrupulous ICOs and not BTC, and imo not MaidSafe. I hold very little else so I am not particularly exposed to the ones that may go to zero, though I guess Maid could.
I don’t think there is any doubt we are in a bubble. Look at the charts and it is impossible to ignore.
The question is, how high will prices go before the pop, how low they will plummet to, then what the new plateau will be to build frim.
I suspect Bitcoin will see $5k or $10k as a tip this time around.
Fk me. That is bold.
If that is bold, how do you call this: https://www.cryptocoinsnews.com/bitcoin-will-hit-1-million-5-10-years-says-paypal-director
Under the tutelage of Taleb, I suggest that anyone talking about 2030 should be roundly ignored if not derided.
Bingo… I believe a guy who went balls-to-the-wall and bought 30,000 bitcoin from US Marshall for around $600 and calls bitcoin $10,000.00… soon. Tim Draper is nothing less than brilliant.
Not sure I understand. Governments aren’t buying bonds they’re selling (issuing) them to fund deficits.
Foreign governments buy US
If the fiat system is insecure, is all the money flowing into crypto really a bubble? Generally, I mean. The trend is inevitable in the long run, it’s just fast right now. Will retrace, but not crash.
Not investment advice, but might be worth listening too