Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Dow Stock Market Short-term and Long-term Trend Analysis - 28th Nov 20
How To Spot The End Of An Excess Market Trend Phase – Part II - 28th Nov 20
BLOCKCHAIN INVESTMENT PRIMER - 28th Nov 20
The Gold Stocks Correction is Maturing - 28th Nov 20
Biden and Yellen Pushed Gold Price Down to $1,800 - 28th Nov 20
Sheffield Christmas Lights 2020 - Peace Gardens vs 2019 and 2018 - 28th Nov 20
MUST WATCH Before You Waste Money on Buying A New PC Computer System - 27th Nov 20
Gold: Insurance for Prudent Investors, Precious Metals Reduce Risk & Preserve Wealth - 27th Nov 20
How To Spot The End Of An Excess Market Trend Phase - 27th Nov 20
Snow Falling Effect Christmas Lights Outdoor Projector Amazon Review - 27th Nov 20
4 Reasons Why You Shouldn't Put off Your Roof Repairs - 27th Nov 20
Further Clues Reveal Gold’s Weakness - 26th Nov 20
Fun Things to Do this Christmas - 26th Nov 20
Industries that Require Secure Messaging Apps - 26th Nov 20
Dow Stock Market Trend Analysis - 25th Nov 20
Amazon Black Friday Dell 32 Inch S3220DGF VA Curved Screen Gaming Monitor Bargain Deal! - 25th Nov 20
Biden the Silver Bull - 25th Nov 20
Inflation Warning to the Fed: Be Careful What You Wish For - 25th Nov 20
Financial Stocks Sector ETF Shows Unique Island Setup – What Next? - 25th Nov 20
Herd Immunity or Herd Insolvency: Which Will Affect Gold More? - 25th Nov 20
Stock Market SEASONAL TREND and ELECTION CYCLE - 24th Nov 20
Amazon Black Friday - Karcher K7 FC Pressure Washer Assembly and 1st Use - Is it Any Good? - 24th Nov 20
I Dislike Shallow People And Shallow Market Pullbacks - 24th Nov 20
Small Traders vs. Large Traders vs. Commercials: Who Is Right Most Often? - 24th Nov 20
10 Reasons You Should Trade With a Regulated Broker In UK - 24th Nov 20
Stock Market Elliott Wave Analysis - 23rd Nov 20
Evolution of the Fed - 23rd Nov 20
Gold and Silver Now and Then - A Comparison - 23rd Nov 20
Nasdaq NQ Has Stalled Above a 1.382 Fibonacci Expansion Range Three Times - 23rd Nov 20
Learn How To Trade Forex Successfully - 23rd Nov 20
Market 2020 vs 2016 and 2012 - 22nd Nov 20
Gold & Silver - Adapting Dynamic Learning Shows Possible Upside Price Rally - 22nd Nov 20
Stock Market Short-term Correction - 22nd Nov 20
Stock Market SPY/SPX Island Setups Warn Of A Potential Reversal In This Uptrend - 21st Nov 20
Why Budgies Make Great Pets for Kids - 21st Nov 20
How To Find The Best Dry Dog Food For Your Furry Best Friend?  - 21st Nov 20
The Key to a Successful LGBT Relationship is Matching by Preferences - 21st Nov 20
Stock Market Dow Long-term Trend Analysis - 20th Nov 20
Margin: How Stock Market Investors Are "Reaching for the Stars" - 20th Nov 20
World’s Largest Free-Trade Pact Inspiration for Global Economic Recovery - 20th Nov 20
Dating Sites Break all the Stereotypes About Distance - 20th Nov 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Bitcoin & Blockchain: All Hype or Part of a Financial Revolution?

Currencies / BlockChain Sep 22, 2017 - 06:07 PM GMT

By: Harry_Dent

Currencies Jamie Dimon, JPMorgan CEO, says Bitcoin is a fraud – likening it to the 17th century tulip bubble – that will eventually blow up. He said he’d fire any trader who traded it.

Ron Insana, CNBC contributor, says Bitcoin is in a bubble, with investor enthusiasm driving it to a new fever pitch. He’s cited several reasons why it will fail.


Are they right?

Is Bitcoin a modern-day tulip bubble leading greedy investors to the slaughter?

Well… yes AND no.

It’s complicated (which is why I’ve invited Bitcoin expert, Michael Terpin, to speak at our Irrational Economic Summit this October in Nashville).

I agree with both men that it’s a dangerous speculative trade right now. It is in a bubble, but we’re likely not near the top yet.

And, as a currency, Bitcoin is a fraud – it’s absolutely NOT a currency currently – but the underlying technology (blockchains et al.) will revolutionize the way we protect our personal information and the way we transact.

It’s the foundation for the bottom-up economy we’re becoming!

Let’s tackle each point in turn…

Bitcoin breached $4,000 per unit recently. And it’s gone up and down like a yo-yo! Just look at this chart, which contains both Bitcoin and Ethereum.

The most recent run in both is clearly a bubble. But, apply Elliott Wave Theory to it and it looks like only a third wave up. This means there’s now a fourth wave crash already in motion and then another steep fifth wave up ahead.

And this should be just the first stage of a very long-term boom in the underlying technologies.

The thing to understand here is that these digital coins are trading more like the stocks of these early-stage companies than a credible currency substitute. They are not behaving like currencies… they’re not currencies yet… and they’re certainly not a stable store of value.

But with decades of high growth, scale, efficiency, and consolidation, digital currencies could supplant central banks with bottom-up creation and much more stable values!

I hope I see that in my lifetime. Stick it to the Central Banks! Man alive, I hate them!

That said, in the near term, like Jamie Dimon, I wouldn’t touch any Bitcoin speculation with a 10-foot pole. If it drops back to around $2,000, and if Ethereum gets near $150, then it could be worth a play, but only as a high-risk speculative one for a small part of your portfolio.

Beyond Bitcoin

Cryptocurrencies are one thing. The technologies they’re built on are another thing entirely. And it’s the latter that has really captured my imagination…

For years now I’ve entertained growing concerns about the safety and security of the internet. In 2015, my computer and email was hacked twice in six weeks. My credit cards still get hacked regularly and I’m forced to change them every three or four months.



The internet is great for googling information and communicating through email and Facebook and other social platforms, but hackers are in control like the Russian mob. Online financial transactions, and online personal details, are simply not safe or secure. Equifax recently offered a brutal reminder of this fact.

Blockchain technologies could be the answer here. They could become a new platform for transactions, providing greater transparency, practically unbreachable security, faster speeds and lower costs!

Don Tapscott, a Canadian business executive, author, consultant, and speaker calls it “the Internet of Value or Money.” I discovered his latest great book, Blockchain Revolution, after listening to his 18-minute Ted talk.

To people like Don and me, and even Steve Jobs, information technologies, and now blockchain, are all about bringing power to the people and eliminating centralized intermediaries.

Put the information, the transaction power, the control over our own identity in our own hands and let us deal directly, peer-to-peer. This will allow our economy and businesses to organize around customers and operate from the bottom-up, not the top-down.

Based on the venture capitalists clamoring to back blockchain technologies – $1.1 billion has been invested since 2013 – this is a serious new technology and not some flash in the pan. Yet to compare, internet companies got much more during their early days.

My 45-Year Innovation Cycle sheds some light on this…

There’s a big difference between new technologies in their early stages in niche markets and their later stages moving into the mainstream.

The last such mainstream cycle around personal computing and the internet ran from 1988 into 2010. Before that it was electricity, phones, cars, radios, and TV from 1942 to 1965.

It’s during that move into the mainstream that whole new major industries and leading-edge companies are created and growth and productivity soars.

I see blockchain technology as the next step in the “maturing” internet revolution. It’s not yet a major new industry and job creator. But it could be, one day, as the next mainstream revolution is set for 2032 to 2055.

The internet made information radically more accessible and affordable (if not free).

That’s what blockchain technologies propose to do for financial transactions!

And like Uber and Airbnb, this technology will initially be deflationary. It will lower costs and destroy more jobs than it creates. It will disrupt the centralized, and often corrupt, financial services industry.

But like Wal-Mart and other companies that followed maturing trends with lower costs, this will paradoxically free up spending power for the everyday person and create easier access to the economy and the financial system.

This is part of how we recreate the middle class again, just like we did after World War II.

This is a big and eventually lifechanging deal.

Just don’t speculate on Bitcoin. It’s in a bubble. Not of the tulip bubble proportions, but bubbly enough to burn you.

Harry

http://economyandmarkets.com

Follow me on Twitter @HarryDentjr

Harry studied economics in college in the ’70s, but found it vague and inconclusive. He became so disillusioned by the state of the profession that he turned his back on it. Instead, he threw himself into the burgeoning New Science of Finance, which married economic research and market research and encompassed identifying and studying demographic trends, business cycles, consumers’ purchasing power and many, many other trends that empowered him to forecast economic and market changes.

Copyright © 2017 Harry Dent- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Harry Dent Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules