What are our thoughts on BITCOIN at this moment?
5th
April 2021
What are our thoughts on BITCOIN at this moment?
Namaste! Reading
our last post on – “Death of The USA and Rise of BITCOIN Prices and Role of
Rahu” many investors are asking me about my views on BITCOIN. They may have
not read my earlier posts on bitcoin, I assume. So here it goes.
When did we first recommend it?
We had first
recommended at USD 1000 in February 2017. It moved up to around USD 19000-20000
by the end of 2017 only. But we had given fundamental reasons at that time for
not buying personally.
1.
It’s
a CURRENCY and not an ASSET: - It
means it has no INTRINSIC value. We have just passed through the DEMONETISAION
experience. How much value you would give to Rs.500 /Rs.1000 old notes now?
ZERO, am I right? Notes did not have any value in them. It had the perception of
VALUE as long as RBI was supporting it. The same goes for BITCOINS. As long as
people keep accepting it – it will have value but the value is going to be
decided by the VELOCITY of MONEY and that is not in anybody’s control.
2. The basic investment
principle says to invest in something having an intrinsic value: - If
I am buying LAND / PROPERTY / SHARES / GOLD / NATURAL RESOURCES – it has some
intrinsic value and that can be realized by enjoying that or by keeping as a
store of value, as they have something intrinsic in them. BITCOIN is a CONCEPT
and nothing else.
2.
Control
on the PRICE: - You can’t control the price of
the BITCOINS nor predict the price as there is no fundamental value in it. We
can’t control the price of shares also but we know that price is a slave of
earning, in the case of shares. As long as earnings are supportive – the price will move
up sooner than later. In the case of BITCOINS – this is not applicable.
3.
CREATOR
of BITCOIN: - It is believed that the guy who
created this is Mr.SATOSHI. He is nowhere seen by anybody so far. My gut
feelings say there must be some powerful forces behind this – looking at the
support it is getting from Wall Street guys.
5. PAYTM experience: - During
the month of DECEMBER – those who were registered on PAYTM and accepting
payments did good business. Buying BITCOINS are like adding money into your
WALLET, the way you are adding rupees in your PAYTM wallet. Wealth can be
created by investing in PAYTM Company and not by transferring money into your
wallet. The same applies to BITCOIN. I would like to invest in
BITCOIN EXCHANGES or BITCOIN issuing company and not in BITCOIN as such.
What
did WARREN BUFFETT say way back in 2014 about BITCOIN?
"Stay
away. Bitcoin is a mirage. It's a method of transmitting money. It's a very
effective way of transmitting money and you can do it anonymously and all that.
A check is a way of transmitting money, too. Are checks worth a whole lot of
money just because they can transmit money? Are money orders? You can transmit
money by money orders. People do it. I hope bitcoin becomes a better way of
doing it, but you can replicate it a bunch of different ways and it will be.
The idea that it has some huge intrinsic value is just a joke in my view."
Now, let me deal with PRACTICAL REASONS for not able to INVEST in Bitcoin
for small investors?
Current price
of Bitcoin is around Rs.42 lakhs in Indian currency. About USD 60000 in the USA. Our
per capita income was Rs.1.35 lakh in India in 2020 and the USA per capita income
was USD 54000 as per 2019 estimates.
How many
investors can afford it to buy at this price? Even if it is at USD 10000, how
many can afford it?
LEGAL Issues: -
In India it
is outlawed to hold or invest in BITCOIN. Those who have done it and kept it in
PRIVATE WALLET will be tracked some or the other day.
In the USA also
the smartest of the smart investors are expecting that BITCOIN will be
outlawed. For the people who are not aware of history – it was illegal to
buy gold in the USA from 1933 to 1971 as gold and USD were pegged at the same
price. Franklyn Roosevelt initiated in 1933 and Nixon ended in 1971.
Same way
they will do something like that to take the investors for a ride in a big
time.
What is the plausible scenario?
I am seeing
some FED COIN coming into the market and other central banks of the respective countries
will also come out of their own version of CRYPTO in near future. RBI India is
in the process as per the various media reports in the last 3 months. 3 years back we had talked about FED Coin.
On 08 March 2018 – we had written our post - Can you imagine World without US DOLLAR?
(conspiracy against the normal guys).
In the same, we had talked about the FED COIN.
Can conversion of USD into some other
Currency be the plan?
Say one fine day the US decide to convert
USD into some of their own CRYPTO Currency and force all the debtors to accept
the payment in that only. They can peg the price of CRYPTO currency to premium
to USD which will help them to reduce the DEBT by 1/10th or
1/20th. Eg. If USD is converted into BITCOIN (this is an example).
Today bitcoin price is USD 10500. With this conversion – the debt of USD will
come down by 10500 times i.e. just 1.9 bln USD. Once the conversion happens, I
take down the BITCOIN price to say USD 5000 or below. I have taken the example
of BITCOIN here. But in reality, it will be a FED COIN or something unexpected
and the supply will be under the control of FED unlike fixed supply in BITCOIN.
With the supply coming up the price of FED COIN will go down and the US can effectively wipe out TOTAL DEBT from its book and make the claim that they are once again a healthy economy.
What is Astrological Position hinting at?
On
26th March 2020 – we wrote our bold post - World over
Currency and Financial system are slated to change thanks to 3 Major Cycles in
2020-2021.
This is a must-read
post, if you have missed it. Astrologically we are in a RESET period. So, when you
do something outrageous in this period which is about to change – you will end
up losing your life’s money.
What is our final advice?
I always follow one simple rule – there is no RIGHT way to do WRONG
things in life and investments.
I have shared
all possible aspects of CRYPTO investing in the above post. Read and reflect on
them and take the decision which you think is correct for you.
If you need
help in investing in the USA or Indian Market – do contact. You can also contact us
for personalized financial astrological guidance.
Have a great
investing.
Follow me on Twitter @hiteshmparikh and
join me on WhatsApp at +91 986 942 5399.
Live With Passion…. Invest With
Passion.
Hitesh Parikh
Sir just read Very depth good research & logical suggestions u gave TNX
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