Between June 2011 and October 2011, there was one currency that lost 90% of its value. That currency was Bitcoin, which is the name of both a relatively new online financial network and the network’s own currency. Prior to its massive fall, Bitcoin had gone up 2,000%. In just a few months, all those gains were wiped out. It was a massive bloodbath. In fact, it was one of the fastest and most devastating falls, by percentage, of any currency in history – thus illustrating the serious problems with Bitcoin.
Nevertheless, people are ignoring the warning. Since that devastating loss, Bitcoin has gained substantially, creating another bubble that’s about to destroy a lot more wealth than the burst bubble of 2011. As you’re about to see, Bitcoin is one of the most speculative currencies in history. It has no backing in real value whatsoever. Its value is based purely on the emotion of its investors. And any value it carries today can be gone tomorrow. What’s more, there are many, varied ways you can lose your fortune in this high-risk game.
In case you’re not familiar with Bitcoin, it is one of many online financial networks and cryptocurrencies you can use to send payments to other people. If you use your computer to make purchases and pay bills, you know what it’s like to use a cryptocurrency. However, most online transactions are based on actual currencies, such as the US dollar. We’ve detailed the problems with the dollar and other fiat currencies for decades. Every day we deal with the loss in purchasing power these currencies are experiencing. Their gradual decline in value slowly steals our wealth, making us poorer with each passing day.
The US dollar, for nearly 200 years, was backed by actual gold. Today, it is “backed by the full faith and credit of the United States government” – which is becoming a bad joke. At one point, it might have meant something. But with the absolute turmoil in Washington, DC these days, “faith and credit” in our government are dying at an accelerating pace. And the value of the dollar is dying along with it.
(Excerpt from McAlvany Intelligence Advisor, August 2017)