Thanks to FTX and Sam Bankman-Fried (soon to be known as Sam Bankrun-Fraud) the Contagion in Crypto is underway.
And it’s reminiscent of the Dotcom bubble.
For those who remember the Dotcom fiasco in 2000, the contagion back then caused many stocks to lose over 90% of their value.
And that was assuming they survived without going out of business.
So, all of the crypto geniuses who flaunted their wealth and bragged to all of us that we “don’t understand crypto” (which is why we didn’t get involved) are probably not prepared for the ride down from here.
Translation: Crypto won’t bottom out any time in the near future.
So, for those who say “Now looks like a great time to buy Bitcoin, Ethereum, Doge, Coinbase, etc.,” we caution you to stay away.
Unless you’re great at catching a falling knife.
Contagion in Crypto 101
Let’s recap what happened to FTX.
First of all, this is the same lesson that constantly repeats in finance time and time again.
So, basically, FTX lent US$10bn of client funds to their trading arm Alameda, which then used it for leveraging their own crypto speculation.
Because the crypto market has been collapsing.
And out of desperation they made one last big play…that totally failed.
But here’s the kicker…
FTX was a partner with Klaus Schwab’s World Economic Forum (WEF).
Ironically (or NOT) the WEF has suddenly removed the link to FTX and is desperately trying to hide their involvement with Sam Bankman-Fried.
True to form, these fools still believe that by eliminating paper currency they can impose their communist agenda.
Eliminating paper currency been the goal of the WEF not only because they want to destroy capitalism, but also democracy.
As a result, the collapse of FTX will now become a contagion for the crypto world.
And it ain’t gonna end soon.
Inexperienced and greedy traders have signaled the demise of an industry that was getting all the hype with no substance.
And when you factor in an inevitable recession, the ongoing collapse of sovereign debt, and the monetary system as a whole, most people will be looking for safer bets than crypto.
READ: Will Bitcoin Replace Gold? December 3, 2020
So, share this with a friend…especially if they’ve been encouraging you to buy Bitcoin.
They probably won’t thank YOU later.
And be sure to read more about the FTX scandal in the November issue of “…In Plain English” (HERE).
Remember, We’re Not Just About Finance.
But we use finance to give you hope.
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