It’s easy to poke holes in the correlation argument. Let’s take Enron as an example. That would have been a superb investment because its share price growth correlated with overall share price growth for quite a while. Only, um…

Likewise the dot-com bust: sure, apres-bust Amazon did very well, but most survivors faded away. Anyone want to go long on eBay shares right now?

The problem with blockchain currencies is (a) they have no fundamental utility, (b) they consume vast computing resources to deliver nearly zero value, and (c ) they are not solving a fundamental problem that can’t be better solved in other ways. Crypto-currencies are the WebVan and of today, and as such although hype and naivete will continue to result in nonsensical share prices for an indeterminate period, the party will inevitably come to an end and whoever’s left holding the shares will lose everything.

So by all means invest in crypto-currencies, but sell those shares at a small profit as soon as you can because no one knows when investors will wake up and realize they’ve been scammed. Again.

Anyone who enjoys my articles here on Medium may be interested in my books Why Democracy Failed and The Praying Ape, both available from Amazon.

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