Bitcoin Will Drop 94% in the Next Year

According to bestselling author Harry Dent, who is adamant Bitcoin is in for a rough ride over the next year. Dent predicted all markets would crash in April, it didn’t come. He changed it to June and people are beginning to wonder if he is now right.

His argument is fairly compelling. Some would counter-argue that if you predict doom and gloom for long enough, you will eventually be right. The worrying thing is he has to be right sometimes.

The baby boom generation caused the greatest growth wave in the history of the world. Are we now entering the baby bust generation?

He’s a Harvard MBA with experience working for Fortune 500 companies. He is convinced the reason we have non-stop money printing is to offset the decline of the baby boom generation.

He scolds US monetary policy as the worst policies ever. And he is convinced central bankers are going to be destroyed by:

1. Blockchain technology.
2. Being the dumbest asses in history.

You can’t print money out of thin air and expect your problems to go away. He sees Blockchain as the internet of financial assets. The internet came along and disrupted traditional business. People like Jeff Bezos took full advantage. Now blockchain is set to make its mark in the same way, he thinks.

But before that happens, he warns:

“We always overvalue the next big thing. “

We’ve had a history of big crashes and blockchain is our modern-day Dutch Tulip Bulb Bubble.

But unlike the stupidity of paying God’s ransom for a flower bulb, Harry Dent suspects blockchain will be the next big thing…

Blockchain, along with all our other assets, will have to step off the cliff before it can recover. A crash is a crash.

Governments can no longer manipulate their monetary systems by devaluating their currencies. What they are doing is insanity. If you were to run your household the same way, it would be like you took out a new mortgage every month.

Answer me this

1. Who runs Bitcoin?
2. Does Bitcoin do anything to create value?
3. Have you actually bought anything with Bitcoin?
4. What happens if the computer you use to store your Bitcoin fails?

№4 reminded me of the guy who ‘threw away’ his Bitcoin laptop and now wants to dig up a landfill site to recover his haul of Bitcoin he had stored it on. He’s offered the landfill management half of the $80m value if he can find it.

5. Do you understand Bitcoin?

I scoured the internet for an explanation and I think this says it best:

If your local supermarket started accepting Bitcoin tomorrow, that would be a big deal. You could spend it on groceries, beer and wine. At the moment, hardly anyone accepts it.

The problem with Bitcoin, and all cryptocurrencies, is they don’t have a government and an armed wing to protect and enforce its use.

At the moment, Bitcoin is largely a betting arena. And that arena is played out invisibly on computer screens across the world. It’s crazy obscene, the massive environmental footprint it has.

In order for Bitcoins to be made, it has to go through the process called Bitcoin mining. Bitcoin mining is essentially solving very difficult mathematical problems, that keep getting harder. The amount of computing power required to do that is huge.

You need the power to switch on your servers and that power comes from fossil fuels. That’s where the carbon footprint comes from. Its carbon footprint is inexcusably large — the same as that of New Zealand.

It’s ridiculous how much energy is involved.

Bitcoin is influenced by scarcity. There can only ever be 21 million Bitcoins. So it is a bit like the diamond cartel run by De Beers, where the scarcity causes demand to outstrip supply.

Bitcoin uses interesting technology. Blockchain can secure trust in supply chains. It is still a digital asset akin to a betting shop. People are speculating on it but nobody is spending it.

Nobody actually wants Bitcoin, they all want the value that Bitcoin appears to have accrued. It is totally inflexible. It can’t respond to supply and demand. Therefore, it becomes intrinsically volatile.

It’s sentiment-driven, all cryptocurrencies are the same. Which opens itself up for the scammers. Where there is money there are the unscrupulous who will try to take it away from you. Top 10 Biggest crypto scams. They do it without batting an eye.

We hear this all the time, for any type of investment. On paper, (or on digital zeros and ones) people have made silly money. Those who have held on to Bitcoin, as it fluctuates all over the place, are the ones who may have scored. The longer they hold it and the higher it goes, the more risk-averse they will become.

Perhaps you can afford to lose the $1k you invested a few years back, but can you afford to lose the $100k it is now worth?

Imagine your investment shows a paper profit of $1m? Tuesday it drops 10% losing you $100k in a day.

Hey, it’s fine. Stick with it.

Wednesday it drops another $100k and then another $100k on Thursday. What are you going to do on Friday?

Will you take a chance it will go up again or cash out when you can still see a decent profit.

There is an intrinsic discord. Nobody has any intention of using it for day-to-day money. Their intention is to hold it, wait for it to go up and then sell it. It’s a speculative game, a gamble.

Don’t worry, Bitcoin will go back to where it has been, and perhaps on to half a million or a million. If you have the nerve, sit on your investment for 5 years and see where it takes you.

If you have only invested what you can afford to lose, you can afford to lose it. And if you still have some the day Walmart accept it in payment for butter, bread, and beans that is when it just might take off.

Source: https://malkymcewan.medium.com/bitcoin-will-drop-94-in-the-next-year-4780bd09ed14?source=rss——-8—————–cryptocurrency