If You Decode the Crypto Hype It Might Read: Easy Come, Easy Go

We are witnessing some very macho — mine-is-bigger-than-yours — shenanigans on social media and with money.


Elon Musk of Tesla ( TSLA)  is calling out Bitcoin and still loving Dogecoin. Michael Berry is against Musk. Dave Portnoy is hawking a ponzi-esque-type of micro penny cryptocurrency coin, and Meme stocks are coming back to life.



Honestly, it’s like we’re not trying any longer. Why put in the work?


I spent yesterday walking around an oil sand property, checking our process, and talking to management. My hope is to find a long-term winner. Later, at dinner, I overhear another table talking about bitcoin, alt coins, and meme stocks and the killing they’ve made. When it comes to explaining what or why they own it, the logic was because it’s “cheap” and it’s the future that will make everyone rich.


I couldn’t help but feel my efforts were far more than needed. The easy thing has been the illogical thing for many of us who have traded for a long time.


In the end, this will likely end up like so many other manias, but where that happens, in terms of price or time, I don’t know.


I do know I walked around a gem of an opportunity yesterday. After the company finished its upcoming Reg A offering, it will look to the initial publication offering. It should be a big winner in terms of business, but it won’t be a meme or an alt coin or touted by a celebrity, so will it even matter?


For my sanity, I certainly hope so.


This isn’t a boy who cried wolf view. As I said, it could last for some time and corrections don’t hurt as much, if at all, if they come from levels that were magnitudes higher. No one worries much about a 20% retrace after a 1,000% run.


I’m staying with my comfort zone for investing. Trading can be anything. I’ll scalp squirrel drippings if I think I have an edge, but I certainly don’t want to own it. Unfortunately, I see lots of squirrel droppings out there, so watch your step.

Get an email alert each time I write an article for Real Money. Click the “+Follow” next to my byline to this article.