Tactical Allocations

 Prediction: At some point Crypto Currencies will all become worthless. I know that this is a strong statement that will irritate many but a review of the facts about the underlying basis for its value can lead to no other conclusion. Crypto Currency Dynamics: The brilliance of cryptocurrency is in its structure which gets rid of the need for intermediaries in its monetary system. No Governments or banks needed.  This is brilliant. The cost of intermediaries on a system is high, I won't go into that but if you look it up there is plenty written about it. Demand for crypto is strong and growing. People are learning about this new interesting monetary tool and seeing some get rich and it is very enticing. People are justifiably curious and more and more people are dipping their toes into the space. The Crypto Currency Myth:  Supply of crypto is limited. This is the crypto lie that everyone seems to be swallowing. The whole valuation argument for crypto is that it...

"I'd rather be lucky than good" ~ Lefty Gomez In the case of my post, on December 15th, about Bitcoin , and my post on February 9th, about Volatility , I would like to think I benefited from a little of both. Bitcoin: When I wrote the post, I did not know that regulators would come out to stop speculative trading (bought on borrowed money) or that it would hit its peak just two trading days later. But I did know a couple of things. I knew that it was a bubble, that many people who had no idea what it was were speculating in it and that eventually it would drop severely. Below is the last 6 months of Bitcoins price movement. The blue line is when I posted my warning. It could bounce back up again but given the combined Government and bank actions against crypto currencies I think it is unlikely. For additional context, bitcoin traded at five cents per coin in 2010, it is conceivable that it could go back to that price. Volatility: This month we got a taste ...

"Lack of Clarity gives Birth to Disappointment" ~ Dan Rockwell Bitcoin's meteoric rise What Is Bitcoin? Everyone is talking about it, but what is it? At the most basic level it is an electronic voucher that says you own it (sounds redundant, no?). It is an electronic record stating who owns how many "bitcoin". There is no physical thing that is a Bitcoin, no one has ever seen, or touched, or tasted one. Its power comes from something called the "blockchain" which makes it (to date) impossible to hack or replicate. So although it is nothing, it is not (currently) replicable or hackable and it is transferable (kind of like money without the paper and metal). The blockchain allows for the exchange and creation of more Bitcoin without a third party middleman. No bank is needed to verify the transactions or to store the Bitcoin or validate their authenticity. No one but the blockchain "system" can validate exchanges or create new vo...