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Will SPAC/Cryptocurrency be the top/bubble in retrospect when we look back?
godawgst
Member, Swaye's Wigwam Posts: 2,410
When this market finally resets and corrects will people look back and say the top was evident when any Cryptocurrency and SPAC started had people throwing money at it?
I say yes, what say you?
I say yes, what say you?
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If so, what do you think will have value at that point?
It’s cascading out of control, but still think we have a long run before it crashes and resets...and who knows what that will look like. But the govt is unable to not spend $$$ and the Fed has written them a blank check to do so. We are already at the point of no return on interest rates...as the Fed chairman himself said the system will collapse if interest rates rise too much (and by too much he meant over 5% or even less on a 30 year treasury which is still low by historical standards). And these low interest rates just accelerates the unsustainable govt spending.
No clue what the reset looks like...writing off govt debt on the Fed balance sheet along with rewriting the charter of the Fed itself? Not my area of expertise...I’m sure the Fed has been working on a “solution” that puts them in charge more...when they are ready it will start leaking in the press. And given the stupidity of politicians on both sides of the aisle it’s a good bet they will blindly install it.
The multiple digital currencies all screaming higher and higher w/ no real fundamentals and the chasing of their daily prices (which to me look like the greater fool theory).
Every bubble I have seen at least in my lifetime have looked very similar to what I am seeing above with asset classes.
Are you telling me this piece of digital art isn’t worth 1.5 mil????!!!
SPACs are traded just like many other securities - can buy just the shares, units (which include the stock and warrants) or just the warrants in a lot of cases. One can 'make money' prior to a deal - there is a market to trade. The BIG money to be made is if/when a deal is totally complete but one can make money on the day-to-day action.
I got in on THCB and THCBU a while back. Not ground floor but definitely prior to the Microvast deal being announced. By posting that, the deal is now destined to derail and I"ll lose all my money.....
https://investorplace.com/2021/02/thcb-stock-tuscan-holdings-shares-surge-on-microvast-spac-merger-news/
I do agree, the cryptos are screaming for a correction. Dogecoin was created as a joke and now it's the off-brand to bitcoin. Was on a call yesterday with a noted contrarian and he is calling bullshit on the fed printing money and the perception of crypto as the wave of the future. He's all in on hard assets as the safe haven.
Now, you want to get into the Wild West, Reg A offerings are where the action is at. And if really want to go for a roller coaster ride, following the Reg D filings and track down the founders to see whether they'll take your money.
@PurpleBaze
@Swaye
@YellowSnow
@Malarkey
I think there's a happy medium between the two -one is a historic hedge against inflation/market forces and the other has somewhat speculative features and upside potential.
Gold has been relatively constant the last couple months. I think that's the market magician's playing their bankster games. They held the price of gold down for years with their paper shenanigans - there truly is a massive shortage of physical gold if the reddit bros ever turn their sights on that one. Which is why I think they semi-fucked with silver as a practice run.
I'm in relatively close contact with two renowned gold bugs - one of whom has the technicals wired, the other a noted contrarian who relies on some common sense and being a codger. Both are convinced gold will hit 3,000 and then to the moon until about 10K per oz.
Not an allocation Certificate “Proving ownership” but actual shiny shit in your grubby little paw. Even SLV changed their prospectus(which tru gold bugs preached was going to happen) when they were having trouble securing physical metal to satisfy the rash of new buyers like @PurpleThrobber
New buyers?!?! The Throbber has to chase people off the GNR Compound all the time trying to find his stash.
My man Tyler Durden at Zerohedge has had a couple of articles about SLV/reddit bros. Physical silver can't get no satisfaction. No, no, no....
While it's true that if the world goes to hell in a handbasket that Bitcoin could be interrupted (less likely as we get things like Starlink or other space-internet solutions), it's probably better than gold in most situations. Portability and censorship resistance are really important in those situations.
Long term I definitely agree that there is a happy medium between the two, and I'll hold gold eventually but for now BTC is the play for me until it eats quite a bit more of the store of value market.
Need to dust that thing off and see if it makes more sense in whacky times than it did then.