Gross

Normally, it’s a good idea not to discuss things you’re ignorant about. Like how pre-pubescent girls feel. What drives people to get so damn much life insurance. Why anyone cares about Meghan Markle. How parents could buy an evil doll named Cayla. Why people cry when they’re happy. Where NDP supporters come from. Who the hell Noah Cyrus is. And bitcoin.

The digital, doesn’t-actually-exist, alternative currency didn’t quite make it to $10,000 a unit on Monday. But close. Stunning. Bitcoin has added 45% in two weeks – something which took the US stock  market three years to achieve. It’s ahead 17% since…Friday, for god’s sake. Some people say once the $10,000 mark is reached, the thing will move in staggering multiples. Meanwhile the volatility of bitcoin has touched 100%. And you thought Donald Trump was unpredictable.

As Bloomberg reported yesterday, when the chart below was published, bitcoin – the love money of the dark web, hacker-ransomers, online drug dealers and sex slave traffickers (as well as Microsoft, Intuit and PayPal) – now has a bigger market capitalization than 470 companies listed on the S&P 500. Next month a major bitcoin futures exchange opens, allowing Wall Street monoliths and pro traders to move in and shellac the newbies and tech boys.

Maverick Toronto real estate broker Alex Prikhodco is a bitcoiner, and has been so since 2012, when one was worth a measly $200. “As a programmer I looked into the algorithm and I got absolutely fascinated with the way it worked,” he tells me. “Whoever came up with that was an absolute genius! Nothing like this has ever been done before. I told some of my friends that I bet bitcoin is going to be worth over a $10k a pop at some point and possibly much, much higher, not a question of if, but a matter of when. People laughed at me of course, much like they did when I was telling people real estate is gonna crash shortly.”

Prikhodco admits bitcoin is risky, and he would never touch it for his RRSP. Plus, yes, it’s in a mother of a bubble – but one with the potential to increase by a factor of (maybe) 27. We should note here that the dude is also an urban survivalist who owns gold, guns “and a decade worth of ammo.” That’s a lot of squirrels, or whatever he plans on stalking.

Here is why bitcoin is less risky than Canadian real estate, however: “Most people who hold bitcoin are not leveraging 10 to 1 to buy bitcoin (unlike real estate). Real estate is overvalued not because of what an average family can or can’t afford (which is irrelevant), but because people bought a bunch of real estate they CAN’T afford for the single purpose of speculation and signed up for loans they’ll never be able to repay. And now we see the results of that. “

But what about bitcoin being a digital entity, only worth something as a commodity, or holding purchasing power, when there’s electricity, a server, a functioning Internet and your iPhone is charged?

“If internet goes lights out, so would the banks, ATM’s, Interac payments, stock market, cell phones, traffic lights, subway system, electricity supplies, real estate, toilet flushing (remember 2002 blackout?) and the most important thing to us all – your blog, that we will all dearly miss. Bitcoin is not the only thing that relies on the internet, far from it. If internet goes out – life as we know would be unimaginable and losing some bitcoin would be the last thing on your mind.”

Prikhodko (and others surfacing here to shed expert light on cryptocurrencies) admit the next surge in technology could result in a better digital store of value, rendering bitcoin obsolete in a hurry. Governments could outlaw it in unity, fearing the impact on fiat currencies and central banks. Snaky people could corner the bitcoin mining business. And wild, unbridled, unregulated speculation, reminiscent of stock markets a century ago, could simply blow the thing up should a wave of shorts move in.

Remember what JPMorgan boss Jamie Dimon said after calling bitcoin a fraud: “If you’re stupid enough to buy it, you’ll pay the price for it one day. The only value of bitcoin is what the other guy’ll pay for it. Honestly I think there’s a good chance of the buyers out there are out there jazzing it up every day so that maybe you’ll buy it too, and take them out.”

Dimon’s a financial genius, by the way. And he’s right. Bitcoin has a far greater chance of going thermal than it ever does of replacing the US currency.

But, wow. It’s now worth about $150 billion. Ten grand a coin seems reasonable this week. Maybe tomorrow. Or by the time I finish this sentence. Believers like Prikhodko say that’s less than two-tenths of one per cent of the world economy, so stop sweating things. Lots more to come because hundreds of millions of people no longer trust paper money. And when parents buy toddlers dolls that are Bluetooth-enabled with online AI functions, anyone born after 1990 is best suited to, you know, blogging about dogs.

I’ll shut up now.

164 comments ↓

#1 SJE on 11.27.17 at 5:11 pm

Answering a couple of comments from other threads:

@Loonie Doctor:

I’ve also cut back my medical practice (in my case, the number of ED shifts I was doing). I was doing too many anyway, but the 53% tax rate sealed it. It’s rock-solid factual that there is something “psychological” that happens to your motivation when you’re taxed at more than 50%.

My wife and I have already discussed it and if this Trudeau crap continues after the next election it is a signal that the public likes the current direction and wants more.

I’m glad to see someone else say this, as it has been my thought precisely, and you’ve convinced me that I’m not astray. I’ve been running with the hope that the Trudeau majority was kind of an “accident”, an over-reaction against the Harper conservatives, but we’ll see. Although I actually like where I work here in Canada, I’m fairly new in practice and it would take very little to nudge me towards the USA (I understand that comes with its own challenges, but the better weather, better culture, and more robust Bill of Rights would make it worthwhile). My thought has been that if there’s ANYthing other than another Liberal majority next election, I’ll probably stick around, but another Trudeau majority will have me very seriously examining the exit strategy.

One of the concepts that I have been thinking about is diversifying against political risk.

Again, you think like I do. I’ve also considered this, and have also diversified my approach (investing in RESPs, e.g., rather than socking all my money into my corp). It’s for this reason that my financial strategy mostly lines up with Garth’s advice, but not completely.

#2 TheSpangler on 11.27.17 at 5:16 pm

Garth, you want these tulips I have, they are very special and will go up in value, I swear.

I also have these magic beans too!

#goweedstockstoday

#3 Smartalox on 11.27.17 at 5:22 pm

@Gravy Train #154 (previous post)

We do contribute to an RESP – our little guy will soon be 4 years old, and will have $16 000 in his RESP shortly after Jan 1st. ($2500 contribution, $500 grant)Looking forward to the $1200 grant from the BC government the year he turns 6, as well!

But I left the RESP contributions off my list because they (like TFSA contributions) come from after-tax income, and don’t contribute to reductions to our taxable incomes.

#4 Multi loser on 11.27.17 at 5:22 pm

Might as well start this off by admitting I’m a two time loser lol. I had a house in Toronto I bought in 2004 for nder 300k and had to sell in jan 2009 due to divorce…couldn’t afford to buy back into the market at the time and missed a huge run up in value.

Then in 2009….drum roll…..as a nerd, I got way into Bitcoin. Then lost faith oh I don’t know, sometime in 2012 or so. So missed out on the huge run up in BTC. No word of a lie…the Bitcoin I had today would be worth about $10,000,000. Oops!

Let the blog dogs year me asunder! Life is crazy.

At least I still have all my Canadian we’d stocks I bought on venture exchanges a few years ago

#5 Multi loser on 11.27.17 at 5:23 pm

Correction : weed stocks.

#6 young & foolish on 11.27.17 at 5:27 pm

People are making an over-night fortune …. for now.

#7 what on 11.27.17 at 5:29 pm

No word of a lie…the Bitcoin I had today would be worth about $10,000,000. Oops!

………………….

wow

#8 12k on 11.27.17 at 5:33 pm

It’s $12k per coin, Garth: You’re Canadian, remember?

#9 Great Read on 11.27.17 at 5:38 pm

Beat the Bank: How to Win the Mortgage Game in Canada. Get this greatread https://buff.ly/2Bhl4Jm

#10 isuckless on 11.27.17 at 5:39 pm

Who is Meghan Markle?

#11 dakkie on 11.27.17 at 5:46 pm

MASSIVE Canadian Deficit Hits Dangerous Level! – EPIC Crash Is Imminent!

http://investmentwatchblog.com/massive-canadian-deficit-hits-dangerous-level-epic-crash-is-imminent/

#12 The Great Gazoo on 11.27.17 at 5:52 pm

#4 Multi-loser

Interesting about bitcoin, never even considered it. My take is that it’s kinda like buying a lottery ticket (back when it was a few hundred $) and hope for some mania to take hold (like what’s happening now) – then look for your opportunity to sell before the eventual crash. One might argue the risk is lower than a lottery ticket. Clearly that one is missed, but what will come along next?

Good luck with those weed stocks.

#13 GeniusMoney on 11.27.17 at 5:54 pm

In recent posts, I mentioned I wasn’t ready to reveal my next crypto investments. Well I’m ready to reveal 2 out of a few that I’m intending to invest in.
Tezos- Is what I consider to be a significant enough improvement on Ethereum, which by several measures is a significant improvement on Bitcoin. Let’s start with Ethereum. It has ~30 second confirmation times vs 10 minutes with Bitcoin, much lower transaction fees – for now, has a smart contracts platform operating for 2 years [Bitcoin intends to launch RootStock for smart contracts, but this is already an inferior solution by several measures], it’s killer app so far has been to disrupt the global VC market, it has 200+ companies, some of them huge ones [Microsoft, Cisco, HP, Mastercard, etc] hiring teams to code on it, and thus by extension it has the highest development community of any crypto currency. I still think Ethereum has significant upside from here long term. Where Ethereum lacks is security and governance. Ethereum has now suffered multiple times from insecure smart contracts that have cost the Ethereum community 100’s of millions of dollars. Tezos fixes that with formal type / verification language for smart contracts. Tezos also solves the Bitcoin waste of Terawatts of electricity by deploying virtual mining [dPoS – Delegated Proof of Stake]. Ethereum is working on something similar, more decentralized but they are 1-2 years away from delivering it – Tezos’ version will be ready supposedly by Feb 2018. Both Bicoin & Ethereum have suffered from contentious forks: There are actually 2 Ethereums: ETH [main Ethereum] and ETC [ethereum classic]. There’s also 4 maybe upwards of 6 Bitcoins: BTC – the main Bitcoin, BCH – Bitcoin Cash, Bitcoin Gold, Bitcoin Diamond and possibly other copy cats coming soon. Tezo’s will hugely minimize these forks to occur through on-chain governance model, wherein changes are voted on and then majority wins. This does not completely remove forking possibilities, but is likely to greatly reduce them. The downsides of Tezos are that it currently has at least 3 lawsuits against it: 2 Class action that I would rate as frivolous and expect them to not affect the project at all, and another that I see likelihood of resolution which is against one of its foundation members. The Tezos CTO is the main reason I’m invested [at 35 cents btw – for a ridiculous sum], Arthur Breitman is a genius with a reputation to execute. Perhaps his IQ is not as high as Vitalik’s [ETH founder], but it’s pretty damn high – certainly higher than most in crypto, and crypto is flooded with PHds and other lesser geniuses. Assuming the legal issues are resolved, I see Tezos immediately doubling in value. Within 2 years, I expect no less than a 20x price increase, assuming the project launches by Q1 2018 and there are no further delays or accidents. Oh and BTW, Tezos raised the second highest $$ in any ICO,at $232M USD, which is now worth closer to $700M-$1B because the funds raised were in Bitcoin and Ethereum. With a war chest like that, anything is possible. Ethereum “only” raised $18M when it launched, which was a record then too.

Postion Paper: https://www.tezos.com/static/papers/position_paper.pdf
Technical White Paper: https://www.tezos.com/static/papers/white_paper.pdf

Atlant.io – People in this blog may like this project, it’s about real estate on blockchain. Specifically, the project aims to disrupt AirB&B and rental markets, and theoretically, it is entirely conceivable this is possible. How? By removing the company raking in huge profits, and providing the same or better functionality but distributing the revenue to all its token holders. Thus, instead of 30% margins, it can charge 3%, massively undercut AirB&B, and still provide nice dividends to all its token holders. But hold on, there’s more… Another area it intends to disrupt is luxury real estate and commercial real estate sales. Traditionally these are highly illiquid asset classes, but also the ones that can climb in price by the most. By taking a real estate deed and tokenizing it [i.e. splitting it up into cryptographically secure shares] and then selling these through an app on a global scale, it could allow joe schmoe to own a piece of what was once George Washington’s house or some other celebrity, or maybe a stake in a $50M commercial property. There exist today financial instruments to do this sort of thing, but they are not used much, certainly not by mainstream investors, because they are very slow to execute on, lack a global digital presence and multi-boarder contractual laws to ensure nothing goes off the rails. Crypto Smart contracts allow for on-chain settlement of contracts – no lawyers required, except for extreme cases. This concept of Real Estate tokenization is going to turn real estate on its head. But wait, that’s not all. Atlant’s long term goal is to actually have real estate [all kinds] sold globally on blockchain using smart contracts on an easy to use app – however, here we’re talking 5-10 years down the road since it would require governments to migrate inefficient title offices onto the blockchains. Anyway, many of you here are more qualified to review their potential than I am. And now the good news for last. The ATL tokens are trading below ICO price, so you can get in at a lower price than even I. I expect them to remain lower for several more months until the team delivers on some of its key roadmap milestones, after that, the moon is a possibility. I reviewed several crypto real estate projects and this was my favorite one. There are others doing similar things, but for a number of reasons I wont get into here, this was my favorite one.

There are arguably a dozen, max 2 dozen [out of 1000+] killer projects in crypto that could end up becoming the Amazon’s and facebooks of Cryptoland, but make no mistake 95/100 will fail and you will lose tonnes of money if you are unfortunately to invest in the wrong ones. Also, I am not a financial adviser, or qualified in any way to advise you on your investments. Do your own research and due diligence.

PS. I am taking major profits today by selling most of my Bitcoin, Bitcoin Gold, and some of my Bitcoin Cash. It’s possible we still go up 30-50% from here, but my coins are years old and I’ve made ridiculous profits from them, and it’s an easy decision for me. I fully expect a crash if not in the next few weeks then in the next couple of months. This post is long enough already, so I wont elaborate other than to say parabolic TA says it will crash, January charts for Bitcoin historically are almost always a down month, and I am not smart enough to understand the CME’s impact on selling [and allowing for shorting] of BTC futures. Lastly, nothing goes parabolic forever.

#14 WelcometoSlurrey on 11.27.17 at 5:54 pm

The Next Bubble…….. I’ve now missed out on making money on the RE bubble and bitcoin bubble ( someone told me to buy a few years back)………… any guesses on what the next bubble to happen ( oil seems to be at a low still, weed stocks still need to get crazy) …… anybody want to chime in.

#15 Imalwaysright on 11.27.17 at 6:12 pm

A safer way to play the weed stocks…HMMJ

#16 Tony on 11.27.17 at 6:15 pm

Re: #4 Multi loser on 11.27.17 at 5:22 pm

The fall in the U.S. dollar plus vintage cars fell about 10 percent year over year and stocks being very expensive was the tip-off for Bitcoin to go higher. Those three things seem to be still in place even if tax reform goes through in America.

#17 Pas Bitcoin on 11.27.17 at 6:20 pm

http://www.cbc.ca/news/politics/tax-offshore-havens-canada-revenue-agency-postal-code-project-avoidance-wealthy-1.4416295
https://betterdwelling.com/canadian-real-estate-works-in-a-cycle-heres-where-we-are/
Let the Toronto and Vancouver real estate market crash. The hipsters, lefties and moisters that overbid assets they couldn’t afford can drown in their own debt. There are way too many people in Canada who are leveraged to the hilt because they all drink the same real estate “kool aid” and are blinded by it. A major correction needs to happen to ensure the lessons are learned by all .

#18 John B on 11.27.17 at 6:25 pm

Not sure if it’s the authors opinion or the real estate agent holding bitcoin, but the notion that it has more value than Canadian real estate, or any real estate for that matter is a farce. The price of bitcoin may be $10,000 but the value is 0. It is backed by nothing tangible, and whereas some may claim money also falls into this category they fail to realize money is the required medium of payment for taxes owed to governments by holders of hard assets (which will be seized and sold if you fail to pay), therefore there will always be a demand for money whereas there is no such ‘backing’ of Bitcoin.

Real estate may be 50% overvalued or more, but it still has intrinsic value. The price of bitcoin should provide alot of fun to follow and discuss, but the underlying value in its current form will always be 0. If governments decide to adopt it as legal tender that will change, however the odds of this and logic behind it are extremely low & flawed.

#19 Bob Dog on 11.27.17 at 6:26 pm

“As a programmer I looked into the algorithm and I got absolutely fascinated with the way it worked,”

Whats an algorithm worth when its open source. Here is the complete source code for the bitcoin network for anyone to download improve and deploy under another name.

How does “BobCoin” Sound.

https://github.com/bitcoin/bitcoin

#20 Non-believer on 11.27.17 at 6:28 pm

If you make it big with bitcoin but want out who turns the digital coin into cash for you? From what I have seen buying in is easy, holding it is exciting, using it for purchases is getting easier as more people accept it but cashing it out or moving it into $ in another holding seems like a challenge. Hard to put faith into something that won’t let you out if you no longer believe… If anyone has different information please share.

#21 raj on 11.27.17 at 6:30 pm

Had bought $160 worth of bitcoin a year ago.It’s worth
$2000 now :) Still holding it :)

#22 Mr Happy on 11.27.17 at 6:31 pm

I am not going to buy bitcoin now…but I am curious… Can you short bitcoin?

#23 Keith on 11.27.17 at 6:35 pm

Biased source, but what a frightening conclusion considering that the vast majority of people will tell you their own tax situation is very unfair.

https://thetyee.ca/Opinion/2017/11/27/Tax-Fairness-Tackle-Inequality/

#24 Joseph R. on 11.27.17 at 6:50 pm

“Here is why bitcoin is less risky than Canadian real estate, however.”

I have some bad news for Garth:

“The Google search term “buy bitcoin with credit card” is around its historic peak as the price scales new highs, notes Nick Colas of Data Trek Research.”

https://www.cnbc.com/2017/11/27/buy-bitcoin-with-credit-card-is-on-the-rise-on-google-and-sparking-bubble-fears.html?utm_source=fark&utm_medium=website&utm_content=link&ICID=ref_fark

#25 Loonie Doctor on 11.27.17 at 7:01 pm

#1 SJE

Thanks. Nice to know I am not alone or totally out there. It was funny. The day after that first post my wife was talking with another doctor’s spouse. Her friend was talking about her husband who was off after a surgery. He is fully recovered but hasn’t been back to work much. She was puzzled why he wasn’t going back and his response was “what’s the point, it will mostly just go to tax and that many of his colleagues were having the same kinds of discussions.”

I think a positive with all of this is that it may cause many of us to re-examine what we are doing and have more balanced lives. Hopefully without an event like a surgery. It is ultimately better for everyone if we aren’t burning ourselves out as long as there are enough boots on the ground to make up for the decreased productivity per pair of boots. The better docs set their financial houses in order by having a good financial plan like what is promoted here, the more freedom they have to do this and not be held hostage on the hedonistic treadmill.

#26 Old gringo on 11.27.17 at 7:07 pm

I see bitcoin as I would a ” digital hamburger ” something to talk about but try to eat the damn thing

#27 Pete from St. Cesaire on 11.27.17 at 7:13 pm

People always ask “where does Bitcoin get it’s value”. Then people respond that “it has none, other than that which people ascribe to it; which is the same as with national currencies.”
The difference is that a nation’s taxes must be paid with the national currency. That’s one of the reasons for taxation; to ensure that the people have to use the national currency which is controlled by the govt./central banks. (It operates sort of the way the petro-dollar does; all oil must be paid for in US dollars thereby creating a demand and necessity for US dollars.).
National currencies really only derive their value by being the only unit of exchange accepted for the paying of taxes (A.K.A. staying out of jail.)
If there were no taxes society could agree to use anything as a form of currency, thereby wrenching control away from the central banks. They could even agree to exclude certain entities (government, for example) from being allowed into the peoples currency system.

#28 akashic record on 11.27.17 at 7:14 pm

Dimon’s a financial genius, by the way. — Garth

—-

If that’s what it takes to be a “financial genius”, sure.
You can have it.

https://www.vanityfair.com/news/2017/09/jamie-dimon-billion-dollar-secret-jp-morgan

#29 akashic record on 11.27.17 at 7:19 pm

#18 Bob Dog

“As a programmer I looked into the algorithm and I got absolutely fascinated with the way it worked”

Whats an algorithm worth when its open source.

You never heard of Linux, I guess. Or even WordPress.

They power this site. Or Google.

Basically the entire Internet. You sound like Bill Gates when he lost it for open source.

#30 $13 Billion Dollar Fine on 11.27.17 at 7:19 pm

Respectfully disagree with “Jamie Dimon is a genius”. In 2013 he agreed to pay the US gov’t a record $13.1 billion dollar fine for exagerating the quality of mortgages that it was holding on J P Morgan’s books leading up to the financial crisis. Later, Blankfein (Goldman Sachs) agreed to pay a $5.1 billion fine for the same thing. Good results but a what cost? Very shady ethics, a pair of pirates wearing neck ties in my books.

#31 Doug t on 11.27.17 at 7:24 pm

I balked at Bitcoin when it came out – I still don’t understand it – I did open a wallet a few years back and bought one and there it sits – I do not like the idea of living in a society where EVERYTHING we do is techno/crypto/AI/dehumanized but it is heading there – I believe the human race has lost control and cannot turn back the tide – we are heading towards a future of bits, bots and digitization – soon you will never have to leave your cubicle for anything

RATM

#32 jess on 11.27.17 at 7:31 pm

VW’s Scania truck firm fined €880m by EU for price fixing

European commission says Swedish truckmaker colluded for 14 years with five other European rivals on pricing
https://www.theguardian.com/business/2017/sep/27/vw-scania-truck-fine-eu-price-fixing-european-commission
=============
…” his comments triggered a backlash in the famously high-tax, high-benefits country, where the concept known as the Law of Jante frowns on individuals who focus on themselves at the expense of society.”

Östling is the first major public figure to resign in the wake of the Paradise Papers.
https://www.lifeinnorway.net/what-exactly-is-janteloven/

anti-janteloven
Ryan Chittum -The head of Sweden’s largest business lobby resigned Wednesday after comments he made amid Paradise Papers revelations about his offshore holdings.
https://www.icij.org/investigations/paradise-papers/swedish-business-chairman-leif-ostling-resigns-amid-paradise-papers-link/
===========
“Sweden’s entrepreneurs must be able to argue for a better business environment, of which taxes are an important part, without being affected by possible debates about me,” Östling said in a statement announcing his resignation.

#33 Pete from St. Cesaire on 11.27.17 at 7:33 pm

Then in 2009….drum roll…..as a nerd, I got way into Bitcoin. Then lost faith oh I don’t know, sometime in 2012 or so. So missed out on the huge run up in BTC. No word of a lie…the Bitcoin I had today would be worth about $10,000,000. Oops!
————————————————————————
Next you’ll get a letter saying that since the taxman can’t find whoever now owns those Bitcoin you are on the hook for the capital gains. Just kidding…….????

#34 NoName on 11.27.17 at 7:36 pm

#23 Joseph R. on 11.27.17 at 6:50 pm
“Here is why bitcoin is less risky than Canadian real estate, however.”

I have some bad news for Garth:

“The Google search term “buy bitcoin with credit card” is around its historic peak as the price scales new highs, notes Nick Colas of Data Trek Research.”

https://www.cnbc.com/2017/11/27/buy-bitcoin-with-credit-card-is-on-the-rise-on-google-and-sparking-bubble-fears.html?utm_source=fark&utm_medium=website&utm_content=link&ICID=ref_fark

Not that you mention trends.

https://trends.google.com/trends/explore?q=buy%20bitcoin%20with%20credit%20card

#35 steph on 11.27.17 at 7:38 pm

The world has gone idiocracy. We’re doomed. Ruled by the ignorant.

Or maybe not. what’s your take?

#36 Ace Goodheart on 11.27.17 at 7:38 pm

RE: “Why anyone cares about Meghan Markle”

To be honest I was more impressed with the first one. I mean, Kate’s literally a hard ten and William’s maybe a two. But he’s a Prince and she’s a heir to a party supply company. So there was a bit of a trade off there (take an 8 point haircut in looks to get the chance at maybe being a Queen – most girls would probably take that).

This Markle/Harry thing is just a couple of hard core party swingers settling. Good for them. Sooner or later you get tired of hangovers and trips to the clinic. I wish them all the best. If they ever want to hang out when I’m down in Jamaica or Mexico I would love to chill with them. I bet they have some good stories.

Re: Bitcoin. Back in the 1940s there was this weird invention called a television. People were very frightened of it. They refused to turn it on. They thought if you plugged it in, then you would die of a shock. They were afraid to change the channels.

I know all this because part of my family history involves a grandfather who got involved in television repair back when a television was something that old wives were scared of, that was thought to contain demons, and that no civilised family would allow in their house. The result was that he made a mint. He got called to people’s houses literally to change the channel. Plug them in. Move them to other rooms.

Why does this matter? Because new technologies are always scary. I still remember how frightened people were of the internet. It was this dark, spooky thing that you had to beware of. No one would dare type in their credit card number on a web site. No one would put personal information “online”. People were afraid to send an “email”.

But if you were one of the smart ones who saw the potential, then you would have probably lost all of your money investing in internet startups that never made a profit and went bust before they got off the ground. You would have been involved in the dot com bubble and lost your shirt.

Unless you somehow figured out that Facebook, Google and Amazon would grow into these behemoths.

How would you have figured that out? That is the hard question. Back when internet first became popular, there was a program called “Netscape Navigator” which was used to access internet websites and do searches. It died when Microsoft monopolised the computer business and was replaced with Internet explorer.

So, lesson one from history: whomever grabs control, wins, because Courts are slow and by the time the situation gets evened out, all the competitors are already dead. Look for a ruthless, growth oriented company that is breaking all the rules and laws.

Google: what is the big deal about this? They do something that many, many computer companies do. They conduct internet searches. Why are they more successful than anyone else? The answer seems to be found in their sales team. This team has successfully penetrated every market, everywhere, and convinced everyone they have to use Google. No other web browser company has done this.

Facebook: This is just dorky. Chalk it up to rich kids with too much time on their hands. Facebook will die a slow death and many people will lose a lot of money. Except the founders, who have already cashed out.

So for me, if I am looking at investing in Blockchain and cryptocurrency, I want to find an entity that is ruthless, controlling and dominating this market. The more dishonest and brutal, the better. I am guessing that one will soon arise out of the Ether (pun intended) in the United States, as that is generally where these companies come from. I am just waiting for the signs.

Once again, a massive opportunity to obtain wealth is about to present itself. It will not be bitcoin, but it will have something to do with bitcoin. Think of bitcoin as the Netscape of the blockchain world.

And remember, back when the telephone was invented, little old ladies would have nothing to do with it. “I’m not having one of those new fangled things in my house. If I want to talk to Margaret, I’ll walk over to her house, sit on her porch and chat over tea, just like I’ve done for years. Those new phone sets are evil, devil’s work…”

#37 Count Flipalot on 11.27.17 at 7:40 pm

Conveniently nobody knows who invented cryto currency. Is it not obvious to everyone that this is a huge push to go cashless.

#38 Dan.t on 11.27.17 at 7:42 pm

#4 Multi loser
We all should be on easy street after the fact. In hindsight, investing in a speculative and ground breaking tech before 99.9% of the public is great in theory- not at all easy- could very easily be worthy zip and you wouldn’t think twice about it- still can be! …no one knows what the future will bring – I hope you catch the next big on!

#39 Dan.t on 11.27.17 at 7:44 pm

Hope you catch the next big one! Should read. And all the best.

#40 Dan.t on 11.27.17 at 7:47 pm

#21
Yes you can short BTC. Bitmex.

#41 John on 11.27.17 at 7:54 pm

Non-Believer

It is easy to turn your bitcoin to cash. Just sell it on one of many exchanges – Quardrigacx and Coinsquare are two Canadian exchanges. Takes seconds.

#42 Marcus on 11.27.17 at 7:55 pm

The lack of knowledge about Bitcoin on this thread is awesome! This is yet another indicator that it is nowhere near general knowledge let alone the shoe polisher telling you to buy. I bought in long ago thanks to my three kids who are developers in the crypto space. None of this will make sense to the dinosaurs like most of us on this thread but Bitcoin is the real deal and will be around for decades to come. Wallstreet is about to jump in as well as the ETFs. If just a small portion of fund money goes into Bitcoin you will see 26K Bitcoin in 2018. I love it when people in the media say it just died or it’s crashing!!!! Look out below! It just means the general public has no clue. Still time to buy. My suggestion …….. buy just one Bitcoin. In a few years everybody will not even mention Bitcoin but will instead be talking about Satoshi. How much Satoshi do you have? No clue? Gotta love the boom!

#43 Marcus on 11.27.17 at 7:58 pm

Also, to those who are looking to short Bitcoin …….. p[lease do it. I’m begging you! Just a couple weeks ago a Chinese guy tried to short Bitcoin to the tune of 40 Million. He lost everything and the coin holders gobbled up his 40 Million. Shorting Bitcoin is like trying to drink out of a fire hydrant.

#44 Nonplused on 11.27.17 at 8:01 pm

I still say Bitcoin will fail because it uses too much electricity. We already discussed this previously so I won’t go into it again in too much detail but it takes 40 times more power to run Bitcoin than the entire Visa network at present. How much power will it take once Bitcoin is remotely as big as Visa?

On the current trajectory Bitcoin could be using all power on the planet by 2020. Therefore you know it will crash before then. It’s another one of those ideas that seemed good in concept, like electric cars for example, until you ask yourself how in the hell are we going to get the power?

Gold is infinitely better than Bitcoin, because once it’s made it doesn’t need any more power to stay in existence. Cash too.

#45 For those about to flop... on 11.27.17 at 8:03 pm

Here’s the latest effort from howmuch…

M43BC

“Mapping the United States of Welfare

When was the last time you stopped to think about how much the government spends on welfare? Most people probably don’t think about it too much, but we bet even for those who do, they don’t know how much their government spends, much less what the money actually pays for. That’s why we created a new map showing you how much each state spends on the public dole.

Our viz takes U.S. Census Bureau data from GoBankingRates and to create a map for the entire country. Each bubble represents a state, and the size of the bubble corresponds to the size of the public expenditure on public welfare. We then color-coded each circle according to the size of the expense. Shades of blue mean that the state spends relatively little money, but pink and red indicate a higher-than-average amount. There’s a lot that you can quickly learn by breaking mapping public welfare expenses in this war.

First off, what is public welfare? This can be a controversial topic with a lot of stereotypes, so let’s get our definitions straight. If you rely on public welfare, then you turn to the government for help with paying your basic necessities, like food, housing and healthcare. The federal government runs programs that provide these types of things, and to varying degrees, so do some states. As you can clearly see, some places are more generous than others. California is the obvious standout on the West Coast, dropping north of $100 million on public assistance. Texas is the only other Western state with over $30 million of expenditures, followed by Washington at under $12 million. There’s a significant cluster of high-spending states across the Northeast, including New York ($61.4 M) and Pennsylvania ($26.8 M). Florida stands out in the South at over $27 million, thanks in large part to its retirement communities. There’s also a cluster of states in the Upper Midwest in light pink, where there a lot of old manufacturing cities.

We should also point out the states with much smaller expenditures, stretching across the Midwest and into the deep South. The simplest explanation for the lack of huge welfare budgets in these states has to do with geography: there just aren’t a lot of big cities in places like Iowa and Alabama compared to other states. This helps explain why California and New York spend so much on welfare. They rank first and fourth as the most populous states.

Here’s a straightforward list of the top ten states with the highest expenditures on public welfare. Note the enormous difference between California and New York and the rest of the country.

1. California – $102,842,797

2. New York – $61,412,770

3. Texas – $35,375,142

4. Florida – $27,151,813

5. Pennsylvania – $26,788,634

6. Illinois – $20,975,644

7. Ohio – $20,072,728

8. Massachusetts – $18,585,384

9. New Jersey – $17,337,353

10. Michigan – $16,368,404

Here’s an interesting fact for you. The top ten states listed above spend more on public welfare ($346.9M) than all of the bottom forty states (plus the District of Columbia) combined ($262.7M). Regardless of how populated any particular state is, you want to pay attention to these numbers because they foreshadow future budget problems. When you consider the fact that many states run operating deficits and have enormous debt problems, you begin to wonder if some of these numbers are sustainable for the long term.”

#46 tccontrarian on 11.27.17 at 8:03 pm

Garth – is there a way you know to short this baby? It’s screaming ‘sell!!’ to me.

Anyone?

Along with Amazon, it’s probably the best shorting opportunity since 2001.

TCC

#47 tccontrarian on 11.27.17 at 8:05 pm

Oops, I see others have already provided some ideas on this. Thanks!

TCC

#48 Bitcoin on 11.27.17 at 8:11 pm

As an Engineer, I’ve been following Bitcoin since around 2013. Tempted to buy in or do some mining several times just for fun but could never justify it.
The following questions always held me back:

1. If you can corrupt the network by having control of just over 50% of the mining, what happens when one country has control of 60 to 70%? Do you trust this country?

2. Currently by helping to run the network you may be rewarded with some mined coin. Great! What happens when the coins reach 21 million. “Miners” will still be able to collect transaction fees but either they won’t be enough to cover your operating costs or it will be more expensive than current banking fees. Either way the system fails.

3. If it is a decentralized network, who is in charge of upgrades? Group vote based on majority? Recent politics and fighting about how to Fork the chain are not encouraging.

It’s been, and continues to be a very exciting story to follow. At least tulip bulbs grew nice flowers..

#49 Flamed out in Kitchener on 11.27.17 at 8:11 pm

Now that’s funny. Good post Garth. I have no interest in Bitcoin, but do think our ‘normal’ currency days are numbered as the T2 gang try to take our savings in whatever scheming way they can. Psuedo socialism will smack us all while junior smiles for the next selfie and gets the CRA to look at every syllable in the tax code to squeeze another dime of tax. My solution; enjoy every day and spend every dollar (after all bills are covered) to keep Ottawa out of my wallet as much as possible. The crypto currency trend will ultimately enslave us all, if we let it. Time for a scotch, …okay, more like three.

#50 crowdedelevatorfartz on 11.27.17 at 8:14 pm

@#35 Aced it
“……….. are evil, devil’s work…”

******

You were discussing Real Estate sales I presume………

#51 the Jaguar on 11.27.17 at 8:17 pm

The Jaguar should know better than to beak off about things out of my scope, but why should today be any different?
I thought the ‘real goods’ regarding ‘Bitcoin’ was not that entity itself (the stinkin’ Bitcoins), but the technology invented to ‘manage’ Bitcoin, specifically something called ‘BLOCKCHAIN’, which was developed as a result of Bitcoin. Almost like looking for a solution to remove mold and discovering penicillin? My Paleo understanding of Blockchain is that it’s a financial system akin to the Internet, cannot be copied but can be updated independently by users. A vessel for settlement of payments. So goodbye paper money, banks holding paper currency reserves (which are costly), tedious wire payments, etc. Everything is also transparent. Money Launders’ nightmare. Sorry all you people transporting funds out of your country of origin, drug dealers, and all other lying cheating bastards. It is clearly in the site lines of the banking industry. They are sitting up and barking. Seems to be one of those ‘the train is leaving the station moments’. “All Aboard”.
Or maybe I have it wrong. Maybe it is all about the trees (Bitcoin) and not about the forest at all (Bitcoin).
What a lovely creature that german shepherd is in the photo. By his looks one can see he is of the old variety before they began to breed aggressiveness and the angulation in the rear legs.

#52 the Jaguar on 11.27.17 at 8:19 pm

Oh dear. The “forest” in that last line was meant to be “BLOCKCHAIN’.

#53 Pepito on 11.27.17 at 8:20 pm

“The only value of bitcoin is what the other guy’ll pay for it. ”
________________________

Same can be said about stocks or etfs.

#54 Bitcoinnaire on 11.27.17 at 8:20 pm

Bitcoin will be worth $100,000 in June.

That is all.

#55 MarcStreetsville on 11.27.17 at 8:22 pm

Yet another wonderful post by the man himself. No story, no hate, only my opinion. Thank you.

#56 For those about to flop... on 11.27.17 at 8:30 pm

Forgot the link because I’m a dink.

https://howmuch.net/articles/public-welfare-expenditures-in-every-state

Also here are the updated links for the houses that I featured this weekend.

B.C Assessment threw me a curveball,I took a strike.

If they do it again I will bunt…

M43BC

Fresh links.

7192 Trudy Crt ,Burnaby.paid 1.4 sold 1.49

https://www.bcassessment.ca/Property/Info/QTAwMDAzVlFKRg==

1607 Balmoral Ave ,Coquitlam.pd 1.3 sold 1.25

https://www.bcassessment.ca/Property/Info/QTAwMDAzWE5XRA==

3186 Wellington Ave,Vancouver. Paid 1.32 Sold 1.31

https://www.bcassessment.ca/Property/Info/QTAwMDAwMzRVQw==

6011-5511 Hollybridge Way Richmond pd 806 sold 840

https://www.bcassessment.ca/Property/Info/RDAwMDBOQjRWQg==

942 Edgar Ave,Coquitlam. Pd 1.19 Sold 1.18

https://www.bcassessment.ca/Property/Info/QTAwMDAzWDhGMA==

6393 Sperling Ave ,Burnaby. Pd 1.55 sold 1.61

https://www.bcassessment.ca/Property/Info/RDAwMDBZQjdYNQ==

4368 Cambridge st,Burnaby. Pd 1.41 sold 1.54 pink draw.

https://www.bcassessment.ca/Property/Info/QTAwMDAzVkxKWA==

#57 TnT on 11.27.17 at 8:33 pm

#12 The Great Gazoo on 11.27.17 at 5:52 pm

Yeah.. I bought Tezzies with my BitCoin and Etherium

Sadly, the great hype fizzled out…. still waiting for Tezzies to get their act together….

#58 Blaze on 11.27.17 at 8:37 pm

It’s about time you’ve come around on BTC… The gains are insane and the early adopters are just arriving.

BTC, LTC,VERI, SALT, UNO for the win

#59 Ronaldo on 11.27.17 at 8:38 pm

I much prefer Etherum to bitcoin and this is how I am buying it, HIVE. up 131% since I bought Oct. 6th. Blockchain though is the real thing, not Bitcoin or the 1100 other cryptos, imo. Blockchain technology will be the next bubbly thing. Blockchain will be around long after Bitcoin and all the other cryptos have faded off into the sunset.

https://www.cnbc.com/video/2017/11/27/its-an-exciting-time-for-digital-currencies-ceo-says.html

#60 Mattl on 11.27.17 at 8:56 pm

Bitcoin is a safer investment then the house I’m raising my family in. Because some people bought homes they can’t afford. And don’t sweat Bitcoins inherent weaknesses, we all rely on the Internet and so what if you lost a million in Bitcoin, you wouldnt be able to get money from the ATM temporarily, or check your emails. Ok thanks Alex, very insightful.

Alex, what are your thoughts on

#61 For those about to flop... on 11.27.17 at 8:57 pm

I was just watching the news on the box and the story about all the papers shutting down and how a bunch of communities will no longer receive local news.

If they couldn’t survive will all the real estate advertising then there will be more to follow.

We have our own community on here and we need to double our efforts and keep the information flowing as it will just get harder and harder to get other printed points of view.Especially from people that can actually write not from mugs like myself.

If I have to burst into the boss of this blogs office, get him in a headlock and mess his hair up like Jimmy Fallon did to Donald Trump ,I will take the mandatory banning as long as he promises to keep it going for as long as possible.

Long live the blog…

M43BC

#62 akashic record on 11.27.17 at 8:58 pm

#29 $13 Billion Dollar Fine

Respectfully disagree with “Jamie Dimon is a genius”. In 2013 he agreed to pay the US gov’t a record $13.1 billion dollar fine for exagerating the quality of mortgages that it was holding on J P Morgan’s books leading up to the financial crisis.

—-

It puzzles me Garth how can you call someone “genius”, who had major role in the financial crisis, that triggered the tsunami of cheap money that is supposedly causing or enabling the real estate crisis and monster debt in Canada – and around the world.

The exact thing you spend literally hours every single day of your life to criticize.

Mystery to me.

The banks colossal failure – with Jamie Dimon personally – triggered directly the creation of Bitcoin.

That irony is genius.

I said he was a financial genius. He is. — Garth

#63 Alicia on 11.27.17 at 9:02 pm

#41 Marcus on 11.27.17 at 7:55 pm
The lack of knowledge about Bitcoin on this thread is awesome! This is yet another indicator that it is nowhere near general knowledge let alone the shoe polisher telling you to buy. I bought in long ago thanks to my three kids who are developers in the crypto space. None of this will make sense to the dinosaurs like most of us on this thread but Bitcoin is the real deal and will be around for decades to come.
=-=========
Exactly, nothing interesting here, just people with their boring forex, cpp and oas.

#64 captainsurfalot on 11.27.17 at 9:03 pm

Bitcoin is rare. It holds more potential value than fiat because of that alone. There will only be 22 million bitcoins in existence. There is around 17 million now–the last will not be out of the digital ground until 2140. The ecosystem is starting to come into fruition. Its growth works opposite as Fiat. It is psychological in the same extent. People inherently deem what is valuable, just like the Petro Dollar. Its just another form of barter.
Bitcoin is actually traceable more so than currency if it were to be regulated. Block chain technology is the future of commerce. Almost every major financial institution and trading house has a bitcoin specialist in their boardrooms. To buy other crypto you often have to hold bitcoin. The currency will grow exponentially in value until it catches up to FIAT then slow down and grow in value with standard inflation. For those that are overwhelmed by it-think of a bitcoin as a bank account full of pennies which are called (BITS). Items can be purchased in bits that are fractioned off of a bitcoin to whomever is selling products in exchange for bits. On top of this the Bitcoin developers have their own independent global satellite system to move bitcoin around and an exponentially increasing rate of speed. The whole concept is quite a fascinating story to watch. I believe this is far from a tulip bulb trend. Through history every form of currency has collapsed over time.(minding gold). The world is about to change at a dramatic rate due to the invention of deep learning computing. We are on the cusp of a new industrial revolution and crypto will be a part of it. I’ve seen too many negative nilly’s in my lifetime bash technology and valuations. From the likes of the beginning of the Internet, Microsoft, Google, Netflix even Cellphones-the list goes on. But when I see individuals like Frank Guistra setting up their own Bitcoin funds I pay attention. He associates with the likes of Clinton and Soros. For all we know Mr. Diamonds bank along with central bankers are silently buying the stuff-maybe even created it- nobody really knows.
Bitcoin can be purchased in increments so you can buy bits of a bitcoin.
Merchants are accepting it at an expanding rate.
The last thing I can add to my rant is I know someone that is CIA affiliated and they were mining the since the inception of Bitcoin. Take what I say for what its worth-but if one is willing to risk a couple million Petro Dollars on a house-why be afraid of a few thousand on something that could be revolutionary. I’d hate to miss that boat.
JMHOP

#65 Long-Time Lurker on 11.27.17 at 9:05 pm

Possible Confido cryptocurrency initial-coin-offering con-job.

https://www.cnbc.com/2017/11/21/confido-ico-exit-scam-founders-run-away-with-375k.html

Hey, Dolce Vita. I’ve been hearing rumours about Italian banks being in trouble. Have you vetted your bank yet? It wouldn’t hurt to take a look.

#66 april on 11.27.17 at 9:06 pm

#10 – Who cares. It’sickening the way the media, is blowing it up.

#67 BG on 11.27.17 at 9:08 pm

Who would have thought Garth would make a full post about Bitcoin? Times are changing.
I agree with the points made.

However, what most people outside of the crypto world don’t realize is that Bitcoin is only the first and oldest instance of the blockchain technology.

Bitcoin might be 100% speculative – especially with its expensive/slow transactions – but other coins are not.

The crypto with second largest market cap, Ethereum, is a platform for running applications in a decentralized way.
And each time one of these application computes something, it burns Ether (Ethereum’s coin).
If adopted, it will become less and less speculative.

#68 akashic record on 11.27.17 at 9:10 pm

Blockchain . AI [Thiel]

That’s the GPS co-ordinates for the next decade.

(Jamie Dimon is out he just can’t read the language of the memo.)

#69 BG on 11.27.17 at 9:11 pm

By the way, JP Morgan – just like most big companies in the finance industry really – is performing R&D on crypto.

#70 not 1st on 11.27.17 at 9:18 pm

Bitcoin = nasdaq 1999

I will keep my farmland

#71 MSM-Free Zone on 11.27.17 at 9:29 pm

“….Dimon’s a financial genius, by the way……”
___________________________

Genius? Hardly.

Unless paying $13 Billion in shareholder hush money to the Dept of Justice to cover your tracks for your contribution to the GFC is considered ‘genius’:

“….following a tense face-to-face meeting at the Department of Justice between Dimon and Eric Holder, then the U.S. attorney general—the two sides agreed to the $13 billion settlement, at the time the largest ever. (It has since been surpassed by Bank of America’s $16.65 billion fine, settling similar claims.) In return, the Department of Justice agreed with Dimon and JPMorgan Chase that, among other things, it would not file Wagner’s complaint……”

“…Mythmaking is a blood sport on Wall Street, and few are better at the game than Dimon…”

Everything you need to know about the so-called ‘saviour’ of the 2008 GFC:

https://www.vanityfair.com/news/2017/09/jamie-dimon-billion-dollar-secret-jp-morgan

#72 Kelsey on 11.27.17 at 9:41 pm

Did Garth’s post just call the top?

#73 young & foolish on 11.27.17 at 10:13 pm

“Conveniently nobody knows who invented cryto currency. Is it not obvious to everyone that this is a huge push to go cashless.”

there has been speculation about this … also rumours that it was video gamers who needed a new untraceable form of money … and even that Elon Musk was behind it …

#74 I’m stupid on 11.27.17 at 10:17 pm

Defence of contrary opinions about bitcoin are as fierce as religious ones. This leads me to believe it’s in a speculative bubble never seen before. One question to those that own bitcoins. If you had the option to own all the cryptos $300billon at current market value or 50% of Microsoft approx 300billion which do you choose? Your answer will give you perspective. Good luck!

#75 Smoking Man on 11.27.17 at 10:22 pm

Vanished?

#76 For those about to flop... on 11.27.17 at 10:27 pm

Recent Sale Report.

This house sold 4 days ago.

3565 w 37th ave. Vancouver.

Originally asking 5.38 then 4.78 then 4.28

Just sold for 4.05

Tax assessment 4.51

And so they were a little ambitious with their opener but the market eventually showed them where it’s at…

M43BC

https://www.zolo.ca/vancouver-real-estate/3565-w-37th-avenue

#77 Bytor the Snow Dog on 11.27.17 at 10:27 pm

Resist the end of paper money with every fibre of your being. Because once it’s outlawed we’re all toast.

#78 PastThePeak on 11.27.17 at 10:29 pm

Lots of bubbles out there, and growing all the time
– Bitcoin (sure – it will grow exponentially until it equals the value of all fiat currencies because…its 2017)
– GTA and YVR real estate
– Tesla
– The modern day dot.coms like Uber, Lyft, Snap… (over a 100B value among them and no profit to be seen)
– No doubt lots of stuff in China (RE, stock markets, state run enterprises…)

The rest are simply overvalued / priced for perfection. So when one (or more) of the above collapse & triggers some repricing of risk, given the huge global debt, expect some pretty strong retrenchment across the board.

Unfortunately we can expect the collective reaction from the G20 to be more of the same as the last time. The cure for too much debt…is more debt.

#79 n1tro on 11.27.17 at 10:33 pm

#19 Non-believer on 11.27.17 at 6:28 pm

If you make it big with bitcoin but want out who turns the digital coin into cash for you? From what I have seen buying in is easy, holding it is exciting, using it for purchases is getting easier as more people accept it but cashing it out or moving it into $ in another holding seems like a challenge. Hard to put faith into something that won’t let you out if you no longer believe… If anyone has different information please share.
—–++-++-+—–

As stated many times by people who actually buy/sell Cryptos, it is easy to get your money out. During a huge crash? Maybe not so much…but how is that different that stocks or housing during a crash? Keep believing paper money has intrinsic value just because that is the only form of payment the government takes to pay for debts and see how much you will miss out. With that logic, gold, diamonds, clean drinking water, etc, etc has no value.

#80 purgemenot on 11.27.17 at 10:33 pm

Thinking of getting a pair of those multistripe socks Trudunce always wears and making a claim re discrimination.

http://www.cbc.ca/news/politics/100-million-apology-gay-purge-victims-1.4421921

Could be the best $2.99 ever invested.

#81 purgemenot on 11.27.17 at 10:36 pm

#4 Multi loser on 11.27.17 at 5:22 pm

Dude, you may be unlucky, but do you have any predictions….you may be a soothsayer!

#82 sam on 11.27.17 at 10:39 pm

“If you had the option to own all the cryptos $300billon at current market value or 50% of Microsoft approx 300billion which do you choose? Your answer will give you perspective. Good luck!”

If you owned all the fiat in the world, it’d be come useless as everyone would stop using it, so that’s not a fair comparison.
I’d rather have diversified liquid crypto tokens than the equivalent amount of MSFT anyday.

It might be a bubble but it could just be the first 10-30% of the bubble and the remnants after it bursts will probably be around forever ingrained in society like MSFT.

#83 Proud Deplorable on 11.27.17 at 10:40 pm

Dear Miss Markle and Prince Harry,
Congratulations and all the best to both of you on your engagement!
And a word to the wise: Whatever happens, please don’t forget to have your best tax advisors inform the IRS that the Royal Family is off-limits to them.
The IRS seem to have problems stopping at borders. I know that sounds a bit strange to the uninitiated but it really is true. And if you don’t believe me, just ask Boris Johnson.
Furthermore, while they’re at it, maybe your tax specialists could research whether taxing and penalizing Europeans for having been born in the USA is in line with international tax law, the UN Human Rights Charter etc. If not, some 8 to 9 million “US persons” (IRS-speak for foreigners deemed American for tax purposes due to their circumstances of birth, green card holders etc.) living outside the USA would greatly appreciate any legal or other effective action against Citizenship Based Taxation and FATCA that your councillors might deem worth taking.
But, most important of all, please don’t allow the IRS to ruin the lives of such a beautiful young couple as yourselves!
All the best to both of you!

#84 For those about to flop... on 11.27.17 at 10:45 pm

Recent Sale Report.

This one sold 13 days ago.

1575 w 58th ave Vancouver.

Asking 2.78

Sold 2.65

Tax assessment 3.04

And so I was trying to explain to Dolce Vita the other day why the two bedroom average is so high.

Only a handful sold each month and the ones in the right place can receive a premium like this one did…

M43BC

https://www.zolo.ca/vancouver-real-estate/1575-w-58th-avenue

#85 Fed-up on 11.27.17 at 10:57 pm

I said he was a financial genius. He is. — Garth

———————————————————–

Many refer to him as a financial terrorist actually but tomato tomahto.

#86 For those about to flop... on 11.27.17 at 11:02 pm

Recent Sale Report.

This one has a bit of a crust on it at 35 days ago.

6576 Yew st.Vancouver.

Originally asking 2.93 then 2.68

Sold for 2.4

Tax assessment 3.01

Speaking about being a bit crusty ,the house is ninety years old.

Might get a bulldozer for its 91st birthday…

M43BC

https://dev4.zolo.ca/vancouver-real-estate/6576-yew-street

#87 april on 11.27.17 at 11:08 pm

#61 – Crooks can be geniuses I guess.

#88 Short on 11.27.17 at 11:13 pm

#21
I am not going to buy bitcoin now…but I am curious… Can you short bitcoin?

No, no one has the financial security to short bitcoin.
The volatility means that next year, it could be $100K.

How is a short-seller ever going to make up for that?
He would be on the hook for 10 times his original position.

Do you think Warren Buffet can afford to short sell $1B if it might mean having to cough up $10B next year to cover the short?
And what if it ends up at $1M per coin? Warren Buffet bankrupt on a $100B bill, that’s what!

Look at it this way:
For the down-side, we know that bitcoin can only drop us$10k per coin.
For the up-side, there is no limit. It can go to 20k, 80k, 200k, who knows?
Whatever it goes to, the short seller is on the hook for that!

TL;DR
Seeing that you do not fully understand the ramifications of selling short, I suggest you never sell assets you do not yet have. It would be safer to buy put-options: you will never lose more than your initial investment on the options. I don’t think put-options bitcoin exist though.

#89 Pete from St. Cesaire on 11.27.17 at 11:16 pm

Currently by helping to run the network you may be rewarded with some mined coin. Great! What happens when the coins reach 21 million. “Miners” will still be able to collect transaction fees but either they won’t be enough to cover your operating costs or it will be more expensive than current banking fees. Either way the system fails.
It’s about time you’ve come around on BTC… The gains are insane and the early adopters are just arriving.
BTC, LTC,VERI, SALT, UNO for the win
——————————————————————–
Actually it’s DEVCOIN that will be ruling at the end. It was developed by the Bitcoin team at the start, it’s the ‘back end’ so-to-speak. Once all of the Bitcoins have been mined, Devcoin will be the currency that the miners will collect their ‘dividends’ in. Now you know why it’s never spoken of.

#90 Dogecoin on 11.27.17 at 11:22 pm

Dogecoin is the official currency of this blog… it’s priceless.

#91 Robert B on 11.27.17 at 11:41 pm

As one of the best experts on Bitcoin named “Andreas Antonopoulos” has pointed out….

Bitcoin is the first app of the Blockchain. There will be more apps to come. You become your own bank with a crypto currency. No middle man(bank) needed.

This is the currency for the other 6 billion people in the world. All you need is a cell phone.

“This is the currency of the internet”

Total value of all crypto currencies are over $300 billion and growing fast.

Is this all a ponzi scheme? Doesn’t look like it.

Traders have pointed out that $10,000 is a magic number for a temporary pause in Bitcoin…….then on its way upward again.

#92 Robert B on 11.27.17 at 11:45 pm

This is what happens when Bitcoin and other cryptos cross over to our central banking system. If you can beat then join it.

Bitcoin Surges over $9,500 after Korea’s 2nd Largest Bank Tests Crypto Wallet for Customers

https://www.globalresearch.ca/bitcoin-surges-over-9500-after-koreas-2nd-largest-bank-tests-crypto-wallet-for-customers/5620195

#93 Robert B on 11.27.17 at 11:47 pm

Sorry type o

If you can’t beat it, then join it.

#94 Ronaldo on 11.27.17 at 11:52 pm

#63 captainsurfalot on 11.27.17 at 9:03 pm

To buy other crypto you often have to hold bitcoin.
—————————————————————
Or you buy into Franks mining operation and get exposure that way. Kinda like if you want exposure to gold, you invest in the miners. Hive.

#95 Balmuto on 11.28.17 at 12:05 am

Can’t decide between weed stocks and Bitcoin? We’ve got just the thing for you!

https://coinmarketcap.com/currencies/potcoin/

#96 NoName on 11.28.17 at 12:10 am

Interesting read

https://www.thedailybeast.com/inside-airbnbs-russian-money-laundering-problem

#97 FOUR FINGERS WATSON on 11.28.17 at 12:29 am

#85 For those about to flop… on 11.27.17 at 11:02 pm
Recent Sale Report.

This one has a bit of a crust on it at 35 days ago.

6576 Yew st.Vancouver.

Originally asking 2.93 then 2.68

Sold for 2.4

Tax assessment 3.01

Speaking about being a bit crusty ,the house is ninety years old.

Might get a bulldozer for its 91st birthday…

M43BC

https://dev4.zolo.ca/vancouver-real-estate/6576-yew-street
……………………………..

This is all very interesting but : how much did the vendor pay and how long did they hold the property ? If they bought 6 months ago for 2 mil they are still laughing all the way to the bank.

#98 Rexx Rock on 11.28.17 at 12:44 am

Max Keiser hates Jamie Dimon.Calls him a financial terrorist.Max loves bitcoin and always told everyone to buy it.Its sad missing out on Vancouver real estate and bitcoin.I want to be rich but I keep missing the boat to easy money.

#99 paulo on 11.28.17 at 1:34 am

Still think the bitcoin story will make burnie madof look like a boy scout in the world of ponzi games.

Than again if you are looking for a high risk investment try the Canadian residential real estate ponzi play particularly in yvr or the gta.

if you have big nuts and a bigger cheque book go condo
in either of the above areas.

it never fails to amaze me of how many sheeple forget the old saying: if it seems to good to be true it likely is!

#100 Morrey on 11.28.17 at 2:36 am

how many Bitcoins are held in Berkshire hathaway’s portfolio?

#101 nubbers on 11.28.17 at 3:39 am

Is there anything that puts a ceiling on the ‘value’ of Bitcoin?

All other bubbles are ultimately limited by something e.g. property is limited by affordability, shares by [potential] earnings, tulips by the cost of production.

Bitcoin’s value, on the other hand, seems to be powered by just pure GreaterFool®. However much money people are willing to speculate, that is what the value will be.

However, on the way back down, there is even less to set a floor on the value of Bitcoin. Companies have cash and assets to fall back on, property drops below the cost of renting. Bitcoin has nothing.

I can imagine scenarios where Bitcoin drops zero. Bitcoin has some big hurdles if the world wakes up to the vast power consumption of Bitcoin (currently about the same as Norway), or clamps down on transactions for illegal porn, drugs, money laundering, expatriation of money, etc.

There are going to be some big losers in Bitcoin. The only definite winners will be those who sell electricity.

#102 dave in kincardine on 11.28.17 at 4:46 am

I wonder when people will wake up to the issue that computer issues plague this product. It is very slow at actual transactions of ‘Real Things’. There is a huge amount of electrical energy involved and is rising geometrically. Fraud of buying is probably gigantic. Just to name a few issues. Buyer beware.

#103 I’m stupid on 11.28.17 at 5:26 am

#81 Sam

If you owned all the fiat in the world, it’d be come useless as everyone would stop using it, so that’s not a fair comparison.
I’d rather have diversified liquid crypto tokens than the equivalent amount of MSFT anyday.

That statement in itself proves cryptos are more fiat than current currencies. If you own all of them they have no value, therefore they’re worthless and not a store of value.

If you own all the companies on the S&p they still have value. With cryptos the more you own the less valuable they become which makes them fiat.

#104 Howard on 11.28.17 at 6:01 am

#13 WelcometoSlurrey on 11.27.17 at 5:54 pm

The Next Bubble…….. I’ve now missed out on making money on the RE bubble and bitcoin bubble ( someone told me to buy a few years back)………… any guesses on what the next bubble to happen ( oil seems to be at a low still, weed stocks still need to get crazy) …… anybody want to chime in.

————————————–

Not predicting a bubble, but uranium and rare earths have been beaten to a bloody pulp since their previous peaks in 2011. Technically they are both finally showing signs of life.

And, as you mentioned, oil, but that’s already had a decent run lately and has more than doubled off its January 2016 low.

#105 Dharma Bum on 11.28.17 at 6:51 am

But what about bitcoin being a digital entity, only worth something as a commodity, or holding purchasing power, when there’s electricity, a server, a functioning Internet and your iPhone is charged? – Garth
——————————————————————–

“What we have forgotten is that thoughts and words are conventions, and that it is fatal to take conventions too seriously. A convention is a social convenience, as, for example, money … but it is absurd to take money too seriously, to confuse it with real wealth … In somewhat the same way, thoughts, ideas and words are “coins” for real things.”
― Alan W. Watts, The Wisdom of Insecurity: A Message for an Age of Anxiety

https://www.goodreads.com/book/show/551520.The_Wisdom_of_Insecurity

#106 Gravy Train on 11.28.17 at 7:04 am

#99 Morrey on 11.28.17 at 2:36 am
“[H]ow many Bitcoins are held in Berkshire [H]athaway’s portfolio?”

The number is 0.
http://www.berkshirehathaway.com/qtrly/3rdqtr17.pdf

#107 Courage and Poo on 11.28.17 at 7:38 am

Bitcoin’s value is derived from the service it provides. Just because something is not tangible, doesn’t mean there is no value. How did a computer algorithm grow into a 150b$ market cap? The service it provides, not because people are stupid buying intangible things. Creating your own crypto currency and hashing your first block is not easy, it’s hard, even if you outright copy the bitcoin code. Block chain tech is by far the most amazing computer program I have ever witnessed.

#108 Down and Out on 11.28.17 at 8:05 am

Another T2 apology coming this week to another minority neglected group of voters ,can’t you just anticipate the one to our great grand children and those yet born for the sorry way the economy was handled and gave them so much debt . Never happen .

#109 Balmuto on 11.28.17 at 8:07 am

“#100 nubbers on 11.28.17 at 3:39 am
Is there anything that puts a ceiling on the ‘value’ of Bitcoin?”

Well, replace all the fiat currency in the world with bitcoin and that should give you your answer. How much does that amount to? There are many different measures of money supply so it’s hard to get an accurate number but according to this article:

“For purists, who believe money refers only to currencies such as bank notes, coins, and money deposited in savings or checking accounts, the total is somewhere around $80.9 trillion.”

https://www.google.ca/amp/www.marketwatch.com/amp/story/guid/D410312A-A5A6-11E5-8AE7-A86DAC7DE99F

Now if we assume that Bitcoin captures just 1% of that total (809 billion) and there is a maximum of 21 million Bitcoin that can be mined, that works out to a price of 809,000/21 = $38,524 per Bitcoin.

What % of global currency market share can Bitcoin actually get to? Who knows, but if this thing has staying power, 5-10% seems entirely reasonable. So on that basis the ceiling could be as high as $385,240 per coin.

And the floor is zero. Hope that helps.

#110 Another Deckchair on 11.28.17 at 8:22 am

@35 Ace Goodheart

Once again, I like what your thoughts are.

Personally, I’ve been directly involved in the Internet since it was the Arpanet, and have always (90+ % of the time) been happily employed.

Sure, friends have made millions, others have lost their shirts. Sure, open source code I wrote has been “borrowed” put into commercial products.

So what? If one makes a very good salary, and (after a few mistakes in my earlier years) saves and invests at least 50% of it for a decade or two, AND loves each and every day of “working”, what’s not to love?

Who made the money in the gold rush? Not the miners, but the suppliers…

So, back to Bitcoin, it is a flawed implementation of a great idea, what it enables will be *really* interesting.

#111 BG on 11.28.17 at 8:26 am

#102 I’m stupid

If you own all of them [crypto] they have no value, therefore they’re worthless and not a store of value.

————————————————————

Keep talking in absolute about things you clearly don’t understand.
I’m sure it will get you somewhere…

#112 Actual bitcoin on 11.28.17 at 8:28 am

The article has bitcoin totally wrong. If you still do get it – learn. Dinosaurs in a digital world.

#113 crowdedelevatorfartz on 11.28.17 at 8:28 am

$211 billion dollars in Home “Equity” loans in Canada.

When this pops ….. its gonna be fugly.

https://ca.reuters.com/article/domesticNews/idCAKBN1DR2MJ-OCADN

#114 Hair guy on 11.28.17 at 8:47 am

It’s important to remember that when someone casts as much FUD (fear, uncertainty, doubt) as Jamie Dimon, it’s usually because they’re hoping to depress the price temporarily in order to accumulate. We see it all the time in message boards devoted to smaller bitcoin alternatives.

#115 Ponzius Pilatus on 11.28.17 at 8:49 am

#109

Who made the money in the gold rush? Not the miners, but the suppliers…

So, back to Bitcoin, it is a flawed implementation of a great idea, what it enables will be *really* interesting.
—————
Great comment.
Another example of how the Internet does not enable but enslave the great unwashed masses.

#116 Broadway Limited on 11.28.17 at 9:15 am

I once thought the world was stupid and becoming stupider. To that I’ll add scary and scarier.

#117 IHCTD9 on 11.28.17 at 9:22 am

#107 Down and Out on 11.28.17 at 8:05 am

Another T2 apology coming this week to another minority neglected group of voters…
____________________________________

Along with another 50 Million+ in apology money no doubt.

Just looking at Browns platform, what a joke. I can’t believe it, but Canadian Politics just keeps getting worse and worse.

The Globe this morning reports Ottawa will spent $145 million on the apology and ‘compensation’. — Garth

#118 For those about to flop... on 11.28.17 at 9:50 am

#96 FOUR FINGERS WATSON on 11.28.17 at 12:29 am
#85 For those about to flop… on 11.27.17 at 11:02 pm
Recent Sale Report.

This one has a bit of a crust on it at 35 days ago.

6576 Yew st.Vancouver.

Originally asking 2.93 then 2.68

Sold for 2.4

Tax assessment 3.01

Speaking about being a bit crusty ,the house is ninety years old.

Might get a bulldozer for its 91st birthday…

M43BC

https://dev4.zolo.ca/vancouver-real-estate/6576-yew-street
……………………………..

This is all very interesting but : how much did the vendor pay and how long did they hold the property ? If they bought 6 months ago for 2 mil they are still laughing all the way to the bank.

//////////////////////////

Fair enough,Fingers.

Simply go to b.c assessment and type in the address and you will receive your answers.

I do multiple different types of reports.

This is a recent sale report which just lets people know what house sold for what recently.

My Pink Snow reports focus on people who have a chance or eventually do lose money.

I can supply all sorts of numbers in my posts but sometimes the most important number is the one in the address because it allows the people that are really interested to take each case as far as they wish.

Some people scroll others wish to be in the know…

M43BC

#119 Dual Citizen In Canada on 11.28.17 at 9:54 am

Remember when people stashed cash in their mattresses? Well, the mattress is now Bitcoin. Don’t trust the banks as they may steal your savings? Don’t trust the government as they may devalue your currency? The herd is flocking to Bitcoin. We need Mr. PHD in Herdonomics to chime in here.
Bitcoin will be a store of value as long as the governments and banks cannot get their hooks into it or come out with their own, de-centralized and endorsed, product.

#120 SmarterSquirrel on 11.28.17 at 9:55 am

It might make sense to invest in Bitcoin, but I’m a bit too conservative to put my hard earned money on something so intangible. I prefer tangible assets… like the stuff owned by Brookfield Infrastructure Partners. Roads, rail, ports, electric and gas distribution and it gives a rising dividend. Seems like a safer bet than Bitcoin to me. I assess it here…

http://smartersquirrel.com/invest/dividend%20investing%20lesson%20with%20brookfield%20infrastructure%20partners

#121 Eyes wide shut on 11.28.17 at 10:00 am

#65 – I concur. People’s obsession with “royalty” is preposterous, and fodder for MSM. Such a waste of time and resources on an entitled, non-productive family.

#122 Eyes wide shut on 11.28.17 at 10:04 am

…on a entitled, non-productive family.

#123 down_boy on 11.28.17 at 10:12 am

“Next month a major bitcoin futures exchange opens, allowing Wall Street monoliths and pro traders to move in and shellac the newbies and tech boys.”

Yeah right. Watch as tech boys and nerds migrate 160$ billion out of bitcoin and into digibytes or litecoin or whatever faster than you can say wall street snake oil salesman.

#124 IHCTD9 on 11.28.17 at 10:20 am

The Globe this morning reports Ottawa will spent $145 million on the apology and ‘compensation’. — Garth
_______

Great, I’m lowballing Trudeau’s giveaways now – usually I’m accused of exaggerating it.

Will the last one out please turn off the lights?

#125 Ronaldo on 11.28.17 at 10:35 am

Interesting video on cryptos with Michael Novogratz.

https://www.cnbc.com/2017/11/27/bitcoin-could-easily-reach-40000-by-the-end-of-2018-novogratz.html

#126 TurnerNation on 11.28.17 at 10:46 am

We are Kanadian sheep : Hwy 407 tolls 10x higher than in USA.
No wonder our drama teacher keeps telling us we got it good. SaySorry SaySorry SaySorry.

https://www.reddit.com/r/toronto/comments/7g0xkp/407_tolls_comparisons_for_consideration/

#127 rainclouds on 11.28.17 at 10:56 am

Bitcoin, according to ………

https://www.bloomberg.com/features/bitcoin-bulls-bears/

#128 Sam the Sham on 11.28.17 at 11:01 am

With all these tearful apologies from our Social Justice Warrior Prime Minister plus the millions of dollars thrown around like confetti, this is getting really embarrassing, never mind expensive for the citizens of Canada. I could carve a better man out of a banana!!

#129 rainclouds on 11.28.17 at 11:28 am

This IS interesting coming on the heels of Mayor Moonbeams insightful proclamation.(election posturing is upon us in Vandelusional……)

http://vancouversun.com/news/local-news/dan-fumano-global-money-hit-vancouver-real-estate-like-a-ton-of-bricks-robertson-says

According to this comment BC in migration is less than 10 yrs ago (almost 50% less)

https://vreaa.wordpress.com/2017/11/27/the-dance-around-foreign-ownership-of-vancouver-re/#comments

El Ninja | 27 November 2017 at 1:03 pm | Reply

Net migration to B.C. in 1996 was higher in absolute numbers than it is today.

Immigration to B.C. in 1996 totaled 52K. Last year just 38K foreigners chose B.C., and the average between 2011 and 2015 (massive bubble years) was even lower.

In 1996, B.C.’s population was growing at 2.5% per year, vs. today’s rate of 1.3%.

But, according to the bulls, Vancouver was a relative unknown in the 90s. Only in the past few years has the city secured its place as “world class”, and it is this transformation that explains housing prices.

Hmmm.

http://www.bcstats.gov.bc.ca/publications/infoline.aspx?BlogTagID=bc63623b-7bc5-4c24-9dd5-9de29da13ab7

#130 Eyes wide shut on 11.28.17 at 11:31 am

Garth – seems that don’t like the increasing number of people disagreeing with your assessment that Jamie Dimon is a “financial genius”. Or is it that you are a “royalty” worshipper too? Which one is it, because looks like you have moderated out couple of my posts on the above subjects?

Dimon is CEO of JPMorgan, and you’re an angry anon Internet guy. Gosh, who to admire more? — Garth

#131 Renter's Revenge! on 11.28.17 at 12:06 pm

“You can fondle the cube, but it will not respond.” – Warren Buffett

#132 Eyes wide shut on 11.28.17 at 12:07 pm

Dimon is CEO of JPMorgan, and you’re an angry anon Internet guy. Gosh, who to admire more? — Garth

Trump is President of the US and Trudeau is PM of Canada. Does not make them fit to lead. Corrupt and greedy CEOs’ like Jamie Dimon are anything but geniuses.

No, I am not angry Garth. Just one who disagreed with you. Not everyone who disagrees is angry :)

#133 Deplorable Dude. on 11.28.17 at 12:12 pm

Well I jumped on the Bitcoin bandwagon this morning…kinda of….

As someone mentioned, Bitcoin may end up being the Netscape Navigator of cryptocurrency. It’s the enabling blockchain architecture that is interesting will all sorts of apps beyond cryptocurrency. For that reason I dropped some of my ‘play money’ into Hive today. Interesting Vancouver company that is setting up hardware farms to leverage blockchain technology….we’ll see.

Ohhh and a comment for Ace r.e. SpaceX. I highly respect your financial commentary, but please do some research before dissing SpaceX. They’ve done more than just recover one crashed rocket from the sea. As of today they’ve successfully launched and landed 19 Falcon9 rockets, 3 of which were resused stage1’s. They are on target to dominate global launches next year in a market that is forecast to be growing to over $1 Trillion.

#134 JohnnyBoy on 11.28.17 at 12:17 pm

White House press secretary Sarah Sanders said that President Donald Trump calling Sen. Elizabeth Warren “Pocahontas” during an event honoring Navajo code talkers was not a racial slur. That is the equivalent of saying Sarah Sanders is not a very good looking woman or not very bright. I have been careful to be as politically correct as possible in my choice of words but you get the point it would be an insult. It was a racial slur to the Navajo nation and for that matter all of the native people. It was a racial insult Mrs. Sanders, plain and simple. Your boss is an ignorant child and socially awkward. Actually my five year old is not that ignorant or that socially awkward. Trump is the worst person I have ever seen in public office ever. Sorry Adolph Hitler was the worst, so Mr Trump you come in second. I bet he wont like that!

#135 JohnnyBoy on 11.28.17 at 12:20 pm

#118 Dual Citizen In Canada on 11.28.17 at 9:54 am

Remember when people stashed cash in their mattresses? Well, the mattress is now Bitcoin. Don’t trust the banks as they may steal your savings? Don’t trust the government as they may devalue your currency? The herd is flocking to Bitcoin. We need Mr. PHD in Herdonomics to chime in here.
Bitcoin will be a store of value as long as the governments and banks cannot get their hooks into it or come out with their own, de-centralized and endorsed, product.
……………………………………………………………….
Mr Hedonomics is AWOL somewhere in the USA and he doesn’t ever have a periscope post anymore. I think the morality police took it down.

#136 Multi loser on 11.28.17 at 12:20 pm

Thanks for the kind words everyone but dont worry about me im doing fine

As for my thoughts on things, if you want to get into crypto now then buy original bitcoin, ethereum, bitcoin cash, or on the canadian venture exchange buy HIVE.v there will also be crypto etfs available very soon.

You can buy fractions of cryptos so dont worry that its 10k a pop.

Seems like many of you need to learn the basics of how it works before commenting. It gains vakue not loses it by being open source, and you cannot seperate coins from blockchains, they are one in the same system and it is indeed a brilliant system. Just think about it from this perspective there are millions and millions of people in developing or destabilized economies such as in africa or venezuela or argintina where fiat is totally unreliable and in some circumstances totally useless. Crypto is filling a big void there already, dont be too focused on the 1st world.

Other tips are canadian marijuana stocks are the next bubble imho, short tesla due to recent insiders laid off and what they are saying about the inner workings of the company, and another good one is to short volatikity indices rather than holding the market index. Oh yeah, and always max out your tfsa and rrsp with safe stuff like low cost indices before getting into altrrnatives.

Disclosures . I no longer hold or short tsla, i do not hold hive at this time, the only crypto im holding now is ethereum, and i hold basically all the major cdn weed stocks canopy, aurora, aphiria, leaf, and organigram. My comments are not to be taken as financial advice just my personal opinions.

#137 Multi loser on 11.28.17 at 12:23 pm

Oh and garth is more of a genius than jp flippin dimon. Ill take prem watsa over any wall street hack.

#138 Leo Trollstoy on 11.28.17 at 12:28 pm

#129 Eyes wide shut on 11.28.17 at 11:31 am
Dimon is CEO of JPMorgan, and you’re an angry anon Internet guy. Gosh, who to admire more? — Garth

[ ] not rekt
[x] rekt
[x] really rekt
[x] tyrannosaurus rekt
[x] parks and rekt
[x] star trekt
[x] school of rekt
[x] catcher in the rekt
[x] great rektspectations
[x] rekt it ralph
[x] the shawshank rektemption
[x] forrekt gump
[x] finding rekt
[x] rektal exam
[x] shrekt
[x] rektium for a dream
[x] The Mummy Rekturns
[x] Pride and Prektudice
[x] erektile dysfunction
[x] rektroom
[x] continental brektfast
[x] Brektzit
[x] rektipe for success

#139 Howard on 11.28.17 at 12:32 pm

#136 Multi loser on 11.28.17 at 12:23 pm

Oh and garth is more of a genius than jp flippin dimon. Ill take prem watsa over any wall street hack.

————————————

The guy who bought BlackBerry stock at $40 and then rode it all the way down?

#140 Multi loser on 11.28.17 at 12:32 pm

Ok one more because theres lots of RE ppl here but im not a RE investor at all. So canopy is the market leader mary jane company going into legalization next year. They are already a billion dollar plus company.

Canopy is headquartered in smiths falls ontario. Go look at thw cost of residential and also main street commercial RE in the tiny town of smiths falls. It wont be that cheap there for long imho.

#141 STOP IT! on 11.28.17 at 1:00 pm

Please stop blurting out “Ponzi Scheme!” on everything.
People here apply it to Bitcoin, they apply it to vancouver RE.

These are NOT Ponzi schemes.
Bubbles? Most likely. Ponzi? No! No! No!

Before blurting it out, learn what it means.
In a Ponzi scheme, a “stolen” yield is paid to early investors. These payments are stolen from the principle investment of later investors.

There is no such transfer w Bitcoin or RE.
Only buying and selling.

Do newly minted homeowners fund a monthly payment to someone who bought and holds a home since 2000?
No. The only way for a homeowner to reap profit is to sell.

The thing that would be closer to Ponzi: a TSX traded company that pays out dividend three times the amount of profit it makes: unsustainable as it dwindles the capital.

#142 Breaking News on 11.28.17 at 1:10 pm

THE TORONTO REAL ESTATE BOARD v. COMMISSIONER OF COMPETITION

Decision to be released DECEMBER 1st 2017!!!!

#143 Bob Dog on 11.28.17 at 1:24 pm

#28 akashic record

Who pays for Linux? Its free. As is the bitcoin source code.

Bitcoins are worthless but a fool is born every second.

#144 I’m stupid on 11.28.17 at 2:09 pm

#100 BG

102 I’m stupid

If you own all of them [crypto] they have no value, therefore they’re worthless and not a store of value.

————————————————————

Keep talking in absolute about things you clearly don’t understand.
I’m sure it will get you somewhere…

—————————

Absolutes are the only way to understand anything. If I owned all amazon shares would the value drop? Nope
All the gold? Nope
All the houses? Nope
If you own 100% of any asset the price doesn’t drop.

Money is not an asset it’s a medium of exchange and an index to price assets. So don’t try and give me the argument if I owned all the money.

I can create my own crypto and it would be worthless. Bitcoins a fad that will end up destroying the very people who are here defending it. The only winners are the ones that sell before it all blows up.

I’m 100% certain of this.

#145 jess on 11.28.17 at 2:27 pm

43 Nonplused on 11.27.17 at 8:01 pm

i agree…look how long it took for TCIP protocol -decades

new job ads
Number of young people acting as ‘money mules’ doubles
27 November 2017
Adverts can appear online through a social media post, offering cash rewards for little work.

The job advertised might be a “financial manager” or “UK representative”, and a UK bank account will be a requirement.

http://www.bbc.com/news/uk-42132802

=======

Mrs May has said: “It doesn’t matter to me whether you’re Amazon, Google or Starbucks… you have a responsibility to pay your taxes.” No10 declined to comment on Capital’s tax affairs.

Finance expert Prem Sikka added: “It’s very odd a business can pay substantial amounts to directors while not turning a profit.”

Loss making firm pays directors £43 million.

http://www.mirror.co.uk/news/politics/firm-theresa-mays-husband-works-11591600

Frederik Obermaier: “I think one outcome of leaks like the Panama Papers or the Paradise Papers is that nobody can feel safe anymore in tax havens” (27 Nov 2017)

…”You do see the mechanisms already. In the Panama Papers we found guys who insisted on not putting their names in documents. One of them was called Harry Potter. They use these code names. One of my favorite lines comes from an email to “Winnie the Pooh”: “Regarding my meeting with Harry Potter…”

#146 AGuyInVancouver on 11.28.17 at 2:33 pm

“Hans have you seen this latest striped tulip, the flowers are to die for. These bulbs will only go up”

Bitcoin 1637-style.

#147 Ace Goodheart on 11.28.17 at 3:00 pm

RE: #135 Multi loser on 11.28.17 at 12:20 pm

“Just think about it from this perspective there are millions and millions of people in developing or destabilized economies such as in africa or venezuela or argintina where fiat is totally unreliable and in some circumstances totally useless. Crypto is filling a big void there already, dont be too focused on the 1st world.”

If I recall a similar argument was used to justify the high prices of RE in Vancouver and Toronto “Foreigners are buying it, so it will always go up in value”.

I would be wondering, what are foreigners using to buy bitcoin? Venezuelan Bolivar?

Have a look at Litecoin. It is basically bitcoin. It was created out of a bitcoin fork, and using the bitcoin code (which is open source and can be copied by anyone). The difference between Litecoin and Bitcoin is just transaction speed.

Litecoin and Ether have my vote. I am really concerned about the value being ascribed to Bitcoin right now. It is an old program, not very fast and it is not very useful. There are better options (Litecoin and Ether come to mind as two of them).

I still think that as more and more people pile into bitcoin, the price will keep going up to a point where people are going to lose a lot of money. Right now I know people who are actually putting hundreds of thousands of dollars into bitcoin, and then pulling out more money in the tens of thousands when it goes up (like it always does). This is very dangerous and relies on there always being a “greater fool”.

#148 paul on 11.28.17 at 3:39 pm

1 SJE on 11.27.17 at 5:11 pm

Answering a couple of comments from other threads:

@Loonie Doctor:

I’ve also cut back my medical practice (in my case, the number of ED shifts I was doing). I was doing too many anyway, but the 53% tax rate sealed it. It’s rock-solid factual that there is something “psychological” that happens to your motivation when you’re taxed at more than 50%.
—————————————————————–
Don’t take to much time off,usually people shop then you get whacked for another 13%

#149 Hamilton on 11.28.17 at 3:59 pm

Its almost like a kid on a bike going ” LOOK, MOM, NO HANDS! ”

OTTAWA, (Reuters) – The vulnerabilities created by Canada’s high household debt and hot housing market remain elevated but should ease over time amid improving economic conditions and tighter mortgage rules, the Bank of Canada said on Tuesday.

In a more upbeat assessment of the risks facing Canada’s financial system than six months ago, the central bank said continued demand and limited supply should support house price growth in Toronto and Vancouver, but higher interest rates and tighter rules will likely weigh on activity.

The closely watched report noted an improving labor market, especially employment growth, and said a moderate increase in mortgage rates would be “significant but manageable” for most borrowers. Canada’s household debt hit record levels as buyers stretched to get into a roaring housing market.

“Our financial system continues to be resilient, and is being bolstered by stronger growth and job creation, but we need to continue to watch financial vulnerabilities closely,” Governor Stephen Poloz said in a statement.

Suggesting the first steps in the right direction have been taken to lessen the vulnerabilities posed by debt and housing market imbalances, the bank said stricter guidelines for low-ratio mortgages – which take effect in January – should mitigate risks over time.

#150 SilverSon on 11.28.17 at 4:01 pm

#43 Nonplused on 11.27.17 at 8:01 pm

Agreed. While clever, the whole structure of blockchain requires a mind boggling amount of computing infrastructure to support – magnitudes beyond that which is used for all the financial transactions we currently experience. Electricity is just part of it too. It makes no sense when scaled up to the size a credit card company’s number of transactions no matter how you cut it. Blockchain is not yet well enough understood by the general public for them to be able to recognize this fatal flaw, but that will come in time.

I kinda see it like this: you can roll a Matchbox car into a concrete wall at 5 mph and it will be fine, but we can’t do the same with a real car without causing $2000 in damage. So why don’t we make real cars like Matchbox cars only 100 times bigger? Because it simply makes no sense. Sure we could do it, but is that more cost effective? No. Is it safer? No. Is it easier? No. Is it making wise use of resources? No. Is the result of moving people moving from A to B improved? No. Is there any benefit significant enough to do it? Obviously not because we don’t.

#151 yupkime on 11.28.17 at 4:07 pm

It will be amazing if bitcoin turns out to be the “black swan event” that crashes everything … again always totally unpredictable and unforseen!

#152 Multi loser on 11.28.17 at 4:34 pm

Howard 138

Sadly i put my foot in my mouth again! I bought blackberry at 30 and called it quits around the 10 dollar mark. One of my worst moves ever.

Never trust a trader who only brags about their winners.

But overall Prems a smarty pants, i like to follow him as do many.

#153 Shinystuff on 11.28.17 at 5:13 pm

Hard call. The potential of what you can do with blockchains for supply chains, contract law, global transactions, etc is mindblowing. That said, Bitcoin isn’t particularly well suited for any of them. It takes too long and is too expensive for e-commerce and there are better alternatives for developing custom applications. It will continue to evolve, and might be the main player after all is said and done, but the Netscape example seems to make a lot of sense. It was the first, but what it paved the way for is probably going to be a whole lot more interesting. A lot of first movers go to zero

#154 BTC on CME on 11.28.17 at 5:18 pm

Once they involve CME to trade futures contracts of BTC, the thing (not sure if to call it commodity or equity) can be shorted. Maybe that’s why drive it way up.

Remember oil contracts peaked at $147 just before what happened again? Right, the bell at the top was rung and the markets took a dive. They called it “credit event” but in reality, the problem was that too many investors tried cashing in at top values.

Let BTC ride the CME train higher for a bit in 2018 but get your ducks in a row and watch that sucker closely.

#155 Bitcoin is a giant scam on 11.28.17 at 5:23 pm

Just search online on bitcoin price manipulated one. As explained in the many search results that show up, the price of Bitcoin is artificially driven up by a small group of parties that have millions of bitcoins addresses, from which they trade with themselves. They wait for naive suckers to step in out of greed and buy one of these Bitcoins at the artificially high prices. Bitcoins will ultimately return to their intrinsic value – zero. In the meantime, there is a massive shift of money from the pockets of naive greedy speculators into the hands of scamming millenial hackers. Justice?

#156 Loonie Doctor on 11.28.17 at 5:25 pm

#147 Paul

Excellent point about consumption. Spending less is already a major plank of my financial plans. Most of what my family and I do in our free time is free or low cost.

I love how our taxes are placed on spending which stimulates the economy and income (a surrogate for productivity). Brilliant policy to discourage those two things.

#157 down_boy on 11.28.17 at 6:54 pm

I’ve gotta fork, so I offer the host these intuits from my humble experience…
– don’t value cryptos in $ and ¢ all the time, instead trade and exchange to accumulate a quantity of coins or tokens, my wallet displays the $ clearly
– do research to see social, charts, exchange volumes
– go to the coins’ forums thru coingecko or coinmarketcap and read the complaints, read if there are wallet slowdowns and exchange issues
– find the cryptos good at storing accumulated value with a modest increase and abundant coins to absorb volatility
– pair coins against each other to exchange when one is going up and the other is going down, I do this when I’m bored and might do ten transactions in a day swapping peaks and valleys (ratio)because transactions are so cheap. It’s like candy crush with a dividend. I use the site currencio a lot. It can seem like work if the trade is stressful.
– beware of whales who park for 2 days then leave. Hodl based on underlying trend
– only play with fun money
– check the coin memory pool and explorer before you transact or exchange. I had to wait 80 hours once in a spike.
– don’t transact bitcoin when there is a spike in volume, other coins are okay
– track your exchanges with bookmarks and screenshots from wallet to explorer to receipt and start a help ticket with the exchange right away if your transaction is delayed beyond the normal time frame (30mins bitcoin, under 10 mins for others. Some wallets require multiple confirmations in the blockchain to be considered valid. My help tickets were always answered eventually and the coins returned or transacted. Sometimes the exchanges get overloaded, but they treated me professionally. Follow instructions on their help page.
– bitcoin is ONE coin. I have ten fav’s in my wallet right now spread between safe and risky. Some I own portions of coins and others I own thousands. I evaluate my purchase based on proximity and value in the top 150 listed on popular tracking sites.
– to begin, I went to a coffee shop atm that printed me a wallet and funded it with $50. I learned to sweep the paper wallet into my online wallet on a tablet.
– I learned how to print an offline backup paper wallet and store value there.
– I tested exchanging for other coins and tokens. I read the charts and forums. I saw patterns in the growth and decline of different coin values based on news, forks, buzz.
– I learned what the memory pool is, blocks, transaction fees, transaction id, explorer, hodl and other lingo. Got a free online wallet with an offline backup/restore like coinomi etc and play with it to see how transactions and exchanges work… Have fun!

Once you enter the casino, you can never leave. These are valuless tokens offline. Now you are in crypto. You can buy or trade among crypto currencies, but once you leave for cash $ or goods and services, better keep your entry and exit totals for the tax people. I keep all my entry receipts. I have not chosen to exit yet. I use CAD $ to interface with real people and cryptos to interface online. I suspect a launch of amazonbucks soon where cryptos could also be exchanged. Why not? There’s nothing mystical about this. It’s just swapping digital tokens that have a buy-in. This is very early in the game. You have missed nothing by putting it off. In fact you are wise to wait until the bugs are worked out, but you can make a lot if you play early.

#158 Ace Goodheart on 11.28.17 at 7:29 pm

RE: #150 yupkime on 11.28.17 at 4:07 pm

” It will be amazing if bitcoin turns out to be the “black swan event” that crashes everything … again always totally unpredictable and unforseen!”

Not so sure if the collapse of bitcoin would be considered “totally unpredictable and unforseen”. Probably it would surprise some people. But so does winter (and elephants, and some forms of math…)

I actually own one Litecoin. Have had it since 2013 when I paid $2.00 for it. It’s kinda cool. I keep it as a conversation piece more than anything else. No idea what to do with it. Apparently I could sell it for $120.00 today. However, I could sell a lot of my cool stuff. Why would I want to?

#159 Marcus on 11.29.17 at 9:25 am

Some joker tried to short Bitcoin again last night. It dropped $700 in a flash crash but recovered to gain almost $2000. Bitcoin is now $11,400.00 I smell fear at the FED.

#160 Ace Goodheart on 11.29.17 at 9:50 am

In addition to the above I also have almost one bitcoin, but I got it in a weird way. The web site I joined to buy the Litecoin has this ‘referral’ feature where if you refer someone to the site, or they refer you, both people get a small amount of bitcoin.

Over the course of a few years, all these random people have claimed to have been referred by me (or to have referred me) so I ended up getting all this fractional bitcoin. It started slow at first, and then gradually it was like a chain thing.

So I actually almost have a whole bitcoin, which I got basically for free.

The internet is a very weird place.

I don’t even like bitcoin.

#161 Ace Goodheart on 11.29.17 at 12:34 pm

Here’s an interesting comparison between the current crypto currency madness and the 2000 dot.com bubble:

https://www.linkedin.com/pulse/crypto-bubble-burst-ugly-vito-petan

We currently have thousands of crypto currencies which are quickly gaining market capitalization. Some of them are just plain weird.

It is also very interesting that really none of these currencies have any value other than that you could possibly use them to purchase things (but you can also use a dollar for that).

People seem to be buying them because they are looking for the next Bitcoin. If you hit the right Crypto, then your $100.00 investment in coins worth 0.000012 cents, becomes a few million US dollars (like bitcoin did).

So everyone is playing the crypto lottery.

The difference between Cryptos and the 2000 dot.com bubble is that the 2000 dot.com bubble played out on regulated stock markets with companies that had very onerous reporting and disclosure requirements.

The crypto bell curve is playing out in what amounts to shadow coin markets, operating in tax haven countries with no financial oversight, no regulation, no reporting requirements and no obligation to be remotely transparent about anything that they are doing.

So if this does turn out to be a bit of a speculative bubble, the burst could be pretty fantastic (I mean c’mon folks, why does no one see this? What do you hear right now? “Buy bitcoin and other cryptos, you can become a millionaire overnight, if you just buy in, you will be rich beyond your wildest dreams”).

Is anyone going to say that the rush into cryptos is not to some extent anyway fueling a speculative bubble?

At any rate, though my $2.00 investment in Litecoin back in 2013 has been likely the most ridiculously profitable thing I have ever done (I now have $130.00 worth of Litecoin and also a $13,000 bitcoin that I paid nothing for – obtained by “referrals” from the website) I would not recommend this sort of “investing” to anyone. It is the most bizarre way I have ever earned money and I don’t believe it is remotely legitimate. I expect to lose everything in the next five years or so (but I don’t really care, because I would in effect lose $2.00 as my initial investment and I am just watching with amusement as this all plays out).

Regarding shorting bitcoin: The market can stay irrational longer than you can stay solvent (famous words, not my own and we all know who said that).

#162 Rexx Rock on 11.29.17 at 2:10 pm

DELETED

#163 nubbers on 11.30.17 at 3:50 am

Balmuto @100
That has to be the best thought out answer to any question that I have asked here.

#164 nubbers on 11.30.17 at 5:11 am

Correction – Balmuto @109, not 100
I wonder if electricity consumption might be a more limiting factor than replacing all fiat currency with bitcoin.

Bitcoin currently consumes about 30 TWh annually out of a world annual consumption of 20,000 TWh, so Bitcoin transactions would consume all the world’s electricity with just an increase by a factor of 666 in the number of transactions. Mmm.. odd coincidence in the number there. I always thought Bitcoin was evil.