Riley: Bitcoin Rally is Just Beginning
Tuesday, November 28, 2017
Later that day Bitcoin plunged and sold off to about $4100. Now just 10 weeks later Bitcoin closed near $10,000. Was Dimon wrong? Yes obviously, his timing was horrible and I believe his prediction will look much worse going forward.
I believe that Bitcoin is not a fraud, certainly no worse fraud than the accounting used by states and municipalities that annually declare “balanced budgets” and then pay fees to Dimon and JP Morgan to help these bankrupt entities borrow from the public. Unlike Puerto Rican GO or revenue bonds, Bitcoin has no chance of ending up worthless. Yet banks and brokers aggressively sold these Puerto Rico munis to the public.
Bitcoin is emphatically not a fraud, it really does exist, just like tulips and municipal bonds exist. Is it a mania? That could be true eventually and, for now, it is true that Bitcoin is very volatile but so are other currencies like those in Zimbabwe or Venezuela.
I believe that Bitcoin has real potential to make many ordinary people wealthy beyond belief. I further believe, the trigger that will set off the next vault upward in price is arriving soon in the form of access and leverage. The ability to leverage your Bitcoin investments and its many related offspring is quickly becoming a reality. An instrument like Exchange Traded funds, Notes, Futures, Options on Futures and options on ETF’s are all coming soon. Both the CBOE and CME intend to trade Bitcoin futures and options. The CME has been publishing a reference rate “BRR” since November 14, 2016.
As a trader and hedge fund manager for the past 40 years, I have been “involved” in many of the greatest short squeezes of all time and some really fraudulent companies. Nearly every time I was forced out of my position because I just couldn’t take it anymore. In my opinion Bitcoin story is just starting and those who will be hurt will be on the short side.
Jamie Dimon, Warren Buffett, and Charlie Munger are three of the smartest market observers of my era. I feel strongly the Jamie Dimon has too strong an opinion on Bitcoin and should step aside and enjoy the ride.
Related Slideshow: GoLocal: Benchmark Poll, October 2017
Next year, in November of 2018, there will be a statewide general election for Governor and many other state offices. How likely is it that you will vote in this election?
Will you definitely be voting, will you probably be voting, are you 50-50...
Definitely be voting: 78%
Probably be voting: 13%
What would you say is the number one problem facing Rhode Island that you would like the Governor to address?
Jobs and economy: 21%
State budget: 9%
Corruption/Public integrity: .8%
Don’t know: .9%
Recently, a proposal has been made to permit the issuance of $81 million in bonds by the State to build a new stadium for the Pawtucket Red Sox. If there was an election today on this issue, would you vote to approve or reject issuing $81 million in financing supported moral obligation bonds to build the stadium?
Net: Approve: 28%
Definitely approve: 15%
Probably approve: 14%
Net: Reject: 67%
Probably reject: 19%
Definitely reject: 48%
Don't know: 4%
The next question is about the total income of YOUR HOUSEHOLD for the PAST 12 MONTHS. Please include your income PLUS the income of all members living in your household (including cohabiting partners and armed forces members living at home).
$50,000 or less: 27%
More $50,000 but less than $75,000: 13%
More $75,000 but less than $100,000: 13%
More $100,000 but less than $150,000: 17%
$150,000 or more: 13%
Don't know/refused: 17%
What particular ethnic group or nationality - such as English, French, Italian, Irish, Latino, Jewish, African American, and so forth - do you consider yourself a part of or feel closest to?
Black or African American: 6%
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