10/6/19

The Confusing State of Crypto in China

There is a huge amount of confusion as to the status of cryptocurrency regulation in China. The other day I read a commentary that suggested that all was rosy in China, when I was of the opinion that it was not.

Read this and you can judge for yourself. This is not intended as a nudge in any direction. It is just simple facts.

I did some research. Nothing ruins a good conversation like facts.

So, let’s review some facts, shall we?

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07/12/19

The Trump Bump — Cryotocurrency

President Trump had some choice words to share in regard to cryptocurrency and the Libra (Facebook) cryptocurrency in particular.

They were not flattering.

The President is “…not a fan…” and suggests that cryptocurrency will “…facilitate unlawful behavior, including drug trade and other illegal activity.”

His full quote was:

“I am not a fan of bitcoin and other cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated crypto-assets┬ácan facilitate unlawful behavior, including drug trade and other illegal activity.”

He had a lot more to say, but that is the money line.

The comments were magnified by those of US Federal Reserve Chairman Jerome Powell who said that he felt that cryptocurrency “…raises serious concerns.” [Hey, if you were casting a movie on the Fed Reserve — sexy action thriller kind of movie with Charlize Theron as a central banker — is this guy not the perfect Fed Reserve Chairman?]

Powell’s comments, though less widely reported, contained substantial beef as he noted that the existing regulatory scheme does not “fit digital currencies” which he indicated would have to be addressed before Libra could go forward. He specifically called out Libra thusly,

“Libra raises many serious concerns regarding privacy, money laundering, consumer protection, and financial stability.”

The President pointedly noted that if Facebook wanted to go forward with Libra they should get a bank charter. Your Big Red Car said the same thing some time ago.

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08/21/18

The Wizard of Omaha and Tech

Big Red Car here on a lovely, sunny Texas day, y’all. Hope it is going well for you and yours.

I always like to take a peek at what Warren Buffet owns as it relates to stocks. It is often an eye opener. It is often pretty damn plain vanilla and boring, but something caught my eye.

Buffett famously has eschewed investing in technology suggesting that there is a limited longevity and defensibility of the competitive advantage for tech based companies and that it is very difficult to identify the big winners at a time when their stock price is reasonable. This was his view back in 1999 when Forbes interviewed him for an excellent article. Take a second and consider that statement. This from a guy who has to deploy $200B in stocks.

Image result for images warren buffett

“My name is Warren Buffett. I’m 84 and I’ve been at this investing business for a long time. Don’t be blowing smoke up my ass about bitcoin and cryptocurrency. I was in business when the US was on the God damn gold standard.”

He and noted venture capitalist Marc Andreesson had a pithy exchange about the future of bitcoin. When Buffett called it a “mirage” Andreeson countered that Buffett “…was just an old white guy crapping on a technology he didn’t understand.” [I see no reason why Buffett’s ethnicity was germane to the discussion, do you?]

Buffet has long been quoted as saying, “All you people piling into dot-com stocks must be much smarter than I am, because I just don’t get it.”

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01/3/17

Bitcoin $2,100 — Prediction 2017

Bitcoin, Big Red Car — I thought you were a huge skeptic as it pertains to bitcoin. What gives?

Big Red Car here in Steamboat Springs where the temperature is a balmy 15F, brrrr! OK, I’m not really there, The Boss is. Me and the house sitter are in the wonderful ATX wherein we are headed for an afternoon of cruising with the top down. It’s going to be sunny and 75F. Haha, I love the ATX, y’all.

So, I was eavesdropping on a convo between The Boss and one of his confidants.

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