Skip to main content

market frenzy: Clubhouse Media (CMGR) & Bitcoin

 So yesterday Elon Musk invited Putin to a conversation on Clubhouse (new version of WhatsApp) which feels like an "early" Gmail where you needed an invitation!  The market impact was that UNRElATED company Clubhouse Media saw its share price spike 12x its morning opening...

Bitcoin hit $51,000!  At this stage there is no reason to think that Bitcoin could go to $300,000 or $50 there is no reason for the crypto to rise (or fall), Bitcoin is not a tool of exchange (or payment) its a speculative instrument.  You can chart the price, see the demand but there are NO FUNDAMENTALS (granted there are no fundamentals for Gold or Silver either).

In fact, gold and Bitcoin share many aspects in common.  Gold is a store of value (it has been relatively stable around $1,800 per ounce), cryptos have been on a massive tear.  Neither are really used in exchange since gold is "complicated" and has never really been used that way.  Apparently, the majority of the world's gold is tied now in gold ETFs.

What gold always was is an uncorrelated asset.  (still is today), cryptos I just don't know.  There is an argument that cryptos are just like gold in many aspects (one massive advantage over gold -- it's almost impossible to fake).



Comments

Post a Comment

Popular posts from this blog

Ok so I lied...a little (revised)

When we began looking at farming in 2013/14 as something we both wanted to do as a "second career" we invested time and money to understand what sector of farming was profitable.  A few things emerged, First, high-quality, source-proven, organic farm products consistently have much higher profit margins.  Secondly, transformation accounted for nearly 80% of total profits, and production and distribution accounted for 20% of profits: Farmers and retailers have low profit margins and the middle bits make all the money. A profitable farm operation needs to be involved in the transformation of its produce.  The low-hanging fruits: cheese and butter.  Milk, generates a profit margin of 5% to 8%, depending on milk quality.  Transformed into cheese and butter, and the profit margin rises to 40% (Taking into account all costs).  Second:  20% of a steer carcass is ground beef quality.  The price is low, because (a) a high percentage of the carcass, and (b)...
Post a Comment
Read more

Spray painting Taylor Swift G650 aircraft (updated)

 First, a bit of paint will not harm anyone.  These climate activities are going to learn two things in the next few days:  (1) Trespassing at an airport is a felony almost anywhere in the world.  That means criminal prosecution.   (2) removing paint from an aircraft is expensive.   So these climate activists are about to find out the reach of the British criminal system and it will not be pleasant, the UK has very strict laws about that, I would be surprised if cleaning the aircraft of all the paint will cost less than $100,000.     I am sure that when they planned (premeditation) this little show they had a very valid logic to doing this.  Tonight, they are probably realizing the depth of their troubles.   I understand that in the UK it's a minimum one-year jail sentence.    Also, good luck travelling with a criminal trespass charge against you.  I am relatively certain that the airline industry will ...
Post a Comment
Read more

Janet Yellen from China supporter to Hawk...

There is rarely serious news in the world these days, it seems that most newspapers are filled with headlines and little else, and then Ms Yellen went to China.  Secretary Yellen has long been known in the Biden administration as the voice of moderation when dealing with China, yet as her trip which concluded yesterday a hawk was born:  She warned the Chinese against dumping goods in the United States.    fighting words! The American administration is very concerned about the lack of Chinese domestic consumption.   Even before the COVID-19 epidemic, there were already the beginning signs of a slowdown, automobile sales were off.   China is facing domestic deflation (a clear sign of collapsing demand) China imports few consumer goods, they import raw materials and intermediary goods.   It seems that the American administration is concerned that the Chinese administration will dump consumer goods abroad to keep its manufacturing machinery ...
Post a Comment
Read more