BITCOIN, THE FIRST FINANCIAL TSUNAMI OF 2021

In previous articles I have warned of the digital pyramid that cryptocurrencies market is, the future inviability of them and the risk to the investor in this type of products. But when the investor becomes the great capital and in the middle of a historically unmatched financial crisis, the risk of immediate bankruptcy of the pyramid is assured.

Although an attempt has been made to equate the new policy of the Digital Currencies of Central Banks (CBDC) to a possible success of the cryptocurrency model. Far from being a success, it heralded the future outcome of cryptocurrencies, their disappearance in the face of greater control of the international monetary transaction system. But this Announcement from September last year, which will come true shortly and which I will talk in the future about its immediate consequences, only heralded the beginning of the end of cryptocurrencies.

Since the announcement, the best-known cryptocurrencies have simply grown and revalued, indicating my possible mistake in appreciation, but if we look at this revaluation, we realize that we are, nowadays, in the outcome of the end of cryptocurrencies.

As on other occasions has happened with .com market, real estate market, …, all fans of the economic-financial antisystem interpret each new product as an element that breaks with the basic rules of the economy, but in the end, all those products ended up being called “bubbles”, when the real name was “financial pyramid”. Now we are facing the implosion of the next “bubble” or really the first “digital pyramid”.

The growth of bitcoin has been due to the intrusion of an element, although attractive at first glance, mortal of need, the great tycoons of the real economy and the future. The entry of the great business visionaries of the future economy does not respond to a commitment to a muddy product, but the need to address an urgent financing problem that the real economy has now, either for not good economy results, or for the need for more equity to absorb more market share. These large investors, once called “sharks”, are at first glance an appreciation of bitcoin value and, with it, the rapid relocation of retail funds in this theoretical commitment of visionaries to a “future” product. To that same destination will go much of the irregular funds circulating around the planet, seeking a theoretical laundering and safeguarding of funds for the future, making “this product” further revalued.

But far from truth, the low structural strength of these currencies, including bitcoin, implies, in front of the decision to disinvest of one of today’s great visionaries, in short term and quickly, the bankruptcy of the system, in front of the possible disinvestment of which it does not want to lose its funds. What in the real market would mean a “crack stock market”, but with investments in real economy, in the cryptocurrency market investors large and small investors who have not left in time will find a bet on something inconsistent, without any value, nor financial sustenment that allows a future recovery, as has already happened with the .com market.

Thus, the entry of these great investors, without being great new, only augurs us the outcome of that end announced since the emergence of the CBDCs. And unfortunately, the great injured, outside the investor looking to laundering its funds, will be, as always, the small investor who was excited to try to make a small equity amid the worst financial pandemic of all time.

My recommendation to the small investor is immediate disinversion, now that it still has a strong value, that the big capital is the one that takes the risk of winning the last euro or dollar in that pyramid.