Sunday, June 3, 2018

If we shouldn't trust 'experts' hawking stocks, why should we trust anyone pushing cryptocurrencies

A few years ago it was leaked that Goldman Sachs was guilty of telling their clients to buy one thing while behind the scenes they were betting against their own advice.  Additionally, business news outlets like CNBC spend all day trying to push stock picks, even going so far as to try to get their own guests to tell the audience what they are buying.

In the end however, the results always remain the same.  The rich get richer and the suckers who follow stock advice from these 'experts' get fleeced.

The primary reason of course is that the one's giving advice have either bought their assets in advance when no one was caring, or their lackeys are getting paid to pump up a stock in order drive in buyers so that those who originally bought low can sell at a profit.

So the question that has to be asked now in this new era of cryptocurrencies is, why do so many crypto holders almost desperately plead in podcasts, on television, or even on billboards for everyone to buy a particular crypto?


The answer is relatively simple.  In every asset class, those who buy at a given price need new buyers to come in at a higher price so they can sell their holdings at a profit.

Back in December of 2017 the number of Bitcoin and other cryptocurrency pumpers proliferated the landscape like locusts, leading the Grandfather of cryptos to reach an all-time high of around $20,000 per coin.  But since that time Bitcoin has lost over 60% of its value, and those original pumpers have now moved on to pushing different cryptocurrencies to anyone who has a penny in their pockets, and a modicum of greed in their hearts.
Bitcoin may have reached its bottom this year, Dan Morehead, founder of Pantera Capital Management, told CNBC. So now is a good time to buy. 
"All cryptocurrencies are very cheap right now," said Morehead, who serves as CEO and co-chief investment officer of Pantera. 
As a whole, cryptocurrencies have declined about 65 percent from their highs this year, he said. 
"It's much cheaper to buy now and participate in the rally as it goes," Morehead said Thursday on "Fast Money." - CNBC
Rarely do individuals, institutions, or in the above example Hedge Fund managers give investing advice out of benevolence.  No, in nearly every instance there is an ulterior motive meant to benefit them and not you.  And of course this has never been simply limited to the cryptocurrency sector, but is as old as time, and a part of every market and asset class ever devised.

Unless you are getting investing advice from someone who has your best interests in mind, and of course this usually means that you are paying them for this sound advice, forever be wary of any Tom, Dick, or Harry, or any 'expert' or analyst who offers free advice on a particular asset, because as they say in poker, if you haven't spotted the sucker in the first 30 minutes of playing then you are that sucker.

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