Value investing collateral damage

You’d agree that its unwise to stay invested in long-only position in the stock market 100% of the time, even when the signs are ominous. The best companies fell 50% and the worst 100% in 2008. One may not have arsenal and other tools but in hindsight you’d agree that standing on the sidelines was a better idea in 2000 and 2008.

Global GDP is 75 trillion USD. Cryptocurrency market cap is growing at the rate of 10%+ per month  check here

It takes about few thousand USD and open source software to start a new Cryptocurrency based on cryptography standards and makes sense for anyone with 1-50 million followers on facebook/twitter/etc. to start their own crypto currency. No wonder many US celebrities, rappers have started on, so they could peddle it ,  get support for it from their followers.

As I write today the crypto currency market cap is 600 Billion USD, this  10%+ per month has kept pace for over 5 years now, and at this rate in another 18 months (1.5 years) that crypto market cap will be 3 trillion USD which will start forcing me to sell 50% or thereabouts of my equity position coz Crypto market cap is going to close to Zero thereafter, and 3 trillion USD write off is not unlikely to go without a slap on the face of value seeking investors either.

Nice layman’s explanation of how to start a crypto without going into cryptography ciphhers/ standards and X.509 / PKI infrastructure.

We might see a few more Michael Burry’s shorting Crypto in another 1-3 years now that its legit to short it and raking in millions/billions.