Pop

On December 17th (that was Sunday) one Bitcoin was worth a hair less than $20,000 US. Five days later (Friday), it was $13,000 – a swing of 35%. In the meantime the founder of Litecoin announced he was cashing in all his chips. Two major Wall Street trading platforms got into the cryptocurrency futures business. And Goldman Sachs, of all people, said it was setting up a Bitcoin desk.

By Friday this was an inefficient market in disarray. The digital currency peaked at $15,800 and plunged a few hours later to $10,800 – a swing of 31%. What will happen next is utterly unknown. It could go to $100,000. It might return to zero. But it looks like the margin calls have started, plus the realization this is an asset that borders on illiquidity. Easy to buy in – “in 60 seconds with Visa/MC!” – as the unregulated exchanges brag. But not so easy to sell. You can liquidate an ETF with one click and get your money in two days, guaranteed. Converting a Bitcoin to C$ can be tortuous, time-consuming and involve a wait of weeks.

Well, days ago this blog told you not to buy Bitcoin. Good advice. Heed it. It’s not money, but a speculative commodity. There is nothing backing it – no company, no earnings, no hard assets, no government, tax system or central bank. Most of the units are closely held by a small group. The trading of it is unstable and sporadic. And the retail investors pouring in are, largely, naïve sheep.

Meanwhile ‘digital currencies’ which are not currencies at all, are being invented, marketed and speculated upon in forums which are unlicensed, unregulated, unsupervised and often unstable. The backers of non-fiat money and proponents of the blockchain technology behind most say none of that matters. This is the future. It’s the final step into electronic money from the age of the printing press – a revolution of the payment system and at the same time a stick in the eye of central bankers and the financial establishment responsible for the consolidation of wealth into the hands of the elite. Especially those who publish free blogs.

So I get digital money. Who doesn’t? How many people still carry folding money, ever write a cheque or go to a physical bank? A dwindling number. In time, none. I also understand how moisters who have grown up taught to be afraid of stocks and realize they can’t afford real estate would be drawn to cryptos. In large part, they own this market. They constitute the millions of retail investors who have been pouring billions into Bitcoin and its clones on the faith that it’s the future. And in that, a huge parallel with the dot-com bubble of 18 years ago. We know how that ended, even though the underlying principle – that the whole world would go online – was totally valid.

So while cryptocurrencies have legs – the Bank of Canada is investigating creating one of its own and Bitcoin ETFs will soon appear – the current trading platforms and valuations could turn to dust before long. The sheep are doing predictable things – flocking to anything that promises rapid gains with renegade genes. The current story illustrating this is of the Long Island Tea Corp, whose stock jumped 289% when it renamed itself the Long Blockchain Corp. Hey kids, maybe you should Google pets.com.

Like dot-coms with cool ideas, CEOs on skateboards and no profits, cryptos are not valued based on traditional metrics. Most investors wouldn’t know a blockchain if they fell over one. The market is completely driven by speculation. It’s gambling, not investing. The surprise which awaits the buyers when they decide to become sellers will be epic. As the financial professionals move in – and it’s happening – the kids will end up being someone’s lunch. The coolness and technological elegance of the underlying asset will not matter one whit. Early speculators are often rewarded. Later ones are always spanked.

Bitcoin, Litecoin, bitcoin cash, ethereum, ripple and whatever’s next may be new. Human nature is not. And the young must learn the same stuff over and again. It’s not different this time.

142 comments ↓

#1 I’m stupid on 12.22.17 at 5:16 pm

HouseSigma stopped showing sold prices. Don’t know why.

#2 unbalanced on 12.22.17 at 5:16 pm

So where does the money come to sustain OAS?

Thank the doctors and other 1%ers! – Garth

#3 Party on Garth on 12.22.17 at 5:16 pm

The following numbers are from the Bank for International Settlements (BIS) as of the end of the 2nd quarter, 2017:

Total credit to the non-financial sector (core debt), % of GDP

Canada – 296.0
Greece – 294.1

https://www.bis.org/statistics/tables_f.pdf

#4 I’m stupid on 12.22.17 at 5:21 pm

Is it me or does anyone else think the Winklevoss brothers are full of shit, claiming they have 1% of all bitcoin and that they spent every penny they have on them. If I was thinking of starting an exchange I’d tell an outlandish story to get publicity. Who in their right mind would commit 100% of their net worth on an unproven “asset class”?

#5 islander on 12.22.17 at 5:25 pm

Had to laugh…I was at a YVR Waves Bitcoin ATM Monday night with my (almost middle aged!) son….who holds one and a half bitcoins…gifted to him by his brother at $400. a bitcoin (back in the day)………..
The time was 10:30 pm, the night was dark and cold and one bitcoin at the Waves ATM was selling for over $27,000 CAD!
Really, I couldn’t believe my eyes……
Of course (being a mum) I mentioned the joys of diversification (for at least 1/2 a bitcoin)…..
You all know the answer to that………..
Anyway what goes up, goes down and best not to put all your eggs in one basket etc.
Of course that’s for those of us of little faith – for the bitcoin faithful this baby’s going to soar past $100,000 CAD.
Hey what do I know!!

#6 unbalanced on 12.22.17 at 5:29 pm

What is considered in dollar terms a 1%er’s? Thanks in advance. And by the way Garth enjoy the weekend and a few holidays off. YOU DESERVE IT!!!!!!

#7 dakkie on 12.22.17 at 5:30 pm

Canadian Housing Affordability Hits 27 Year Low

http://investmentwatchblog.com/canadian-housing-affordability-hits-27-year-low/

#8 Scully on 12.22.17 at 5:30 pm

I said to my husband buying Bitcoin is like buying unicorn farts. There’s nothing tangible. But my 8 year old corrected me and said that unicorn farts are real – they sell them in buckets of Cotten candy. Apparently that’s a flavour.

#9 Roadrunner12 on 12.22.17 at 5:31 pm

“Well, days ago this blog told you not to buy Bitcoin. Good advice. Heed it. It’s not money, but a speculative commodity.”

What this blog should also be telling you is to put 5-10% of your balanced portfolio in an insurance policy, Gold. Since 2002, you would have averaged 9.4% gains.

https://goldprice.org/gold-price-canada.html

#10 cultural elitist on 12.22.17 at 5:38 pm

Timely. I overheard the following in a restaurant today. Picture the scene: Two young bros, bowls of food, baseball caps, hands on smartphones while chewing:
“I was up a few thousand last week.”
“You know it’s going to go back up.”
and my favourite:
“It’s like investing in the Internet before the Internet”.

Yup, that’s the extent of the critical thinking in the casual bitcoin space.
Thanks Garth for all you do. Voices like yours are badly needed.

#11 Screwed Canadian Millenial on 12.22.17 at 5:41 pm

#2 unbalanced on 12.22.17 at 5:16 pm
So where does the money come to sustain OAS?

————–

Refugees and TFWs

#12 Ed on 12.22.17 at 5:45 pm

I remember selling virtual currency from Ultima Online profitably for a few years on eBay till we figured out how to “dupe” our currency and the market crashed overnite.

#13 SWL1976 on 12.22.17 at 5:47 pm

Who cares about bitcoin anymore, the road to Canada’s riches seem to be being laid down on the green brick road…

Speaking about pure speculation, how’s about them weed stocks???

#14 conan on 12.22.17 at 5:54 pm

Bit Coin is crazy. I am going to buy some after I think it has bottomed out. I do not know anything about how it is valued, but neither does anyone else, so I am an expert.

I call $600 – $1000 the bottom for bitcoin, and then worth buying again.

#15 FOUR FINGERS WATSON on 12.22.17 at 6:00 pm

#2 unbalanced on 12.22.17 at 5:16 pm
So where does the money come to sustain OAS?

Thank the doctors and other 1%ers! – Garth
……………….

….and anyone who has ever paid their taxes.

#16 akashic record on 12.22.17 at 6:09 pm

BTC – if you got them when they were a couple of hundred bucks, you got used to the roller coaster ride. Something to spice up the frankly boring real estate and the dull 6% balanced return.

#17 sm_yyc on 12.22.17 at 6:19 pm

Happy Holidays and Merry Christmas to you and your family, Garth. Have a well deserved break and rest. Away from your blog.
Thanks for helping us navigate personal finance!

#18 LivinLarge on 12.22.17 at 6:20 pm

Yea, what Four Fingers said!!!

Don’t single out doctors or your 1% er cohort for special glorification. Each and every one of us who pay taxes are footing this bill.

#19 Screwed Canadian Millenial on 12.22.17 at 6:22 pm

Bitcoin already back to $15k+

Not saying I know where it’s going to go but it’s insanely resilient.

https://www.coinbase.com/charts

#20 Kelsey on 12.22.17 at 6:24 pm

Merry Christmas to Garth and all the Blog Dogs out there!

#21 Greater Fool on 12.22.17 at 6:25 pm

https://99bitcoins.com/bitcoinobituaries/

#22 Zapstrap on 12.22.17 at 6:31 pm

Looks like the kid’s are getting eaten up by everything from every direction. Don’t stand much of a chance. Best to stay home with mom. Doesn’t bode well for us in general.

#23 Damifino on 12.22.17 at 6:35 pm

I’m sure to be called a fossil, but I use “folding cash”, pay my rent with post-dated checks and visit a “bricks and mortar” bank from time to time. It’s working for me, but then, I do have a lot of time on my hands.

#24 Randy on 12.22.17 at 6:49 pm

The vast majority of people who created accounts on bitcoin exchanges recently handed over money and purchased what they thought was bitcoin. But it isn’t. That ‘balance’ their browser reports back to them is a promise by that private company to give them bitcoin **if they ask for it**. Do they actually have it to give? Are they running a fractional reserve system? Who knows. But these people are not the most trustworthy among us.

Unless you actually withdraw the bitcoin into the bitcoin network to an address for which you have the private key, you actually don’t own any bitcoin. And if something happens to the exchange before you do? Bye bye $. Just the other day, a South Korean exchange filed for bankruptcy and their depositors will get back only 3/4 their deposits after their SECOND hack.

It takes about 5 business days to withdraw $ from a bitcoin exchange. Sometimes more.

#25 Hans on 12.22.17 at 6:49 pm

I am not well read on cryptocurrencies however, I have read that some are backed by one asset or another. If it turns out that the gov’t of Canada and others create a cryptocurrency backed by the gov’t, would that change your mind about it as an asset class?

This whole thing could be co-opted by governments and undermine the anonymity that so many are seeking with it. At the same time, talk about a massive tax that could be collected in one shot with the creation of the Canuckistan Socialist Peso-Coin. Issue 1 billion to start, and add until you can sucker in enough people to pay for every apology and reparation you could imagine? Sounds like a plan JT would love.

#26 AGuyInVancouver on 12.22.17 at 6:51 pm

Forget weed and bitcoin, Vancouver real estate still rules the roost for irrational investment:
“The high-profile White Spot site on West Georgia has been sold for a reported $245 million, which is among the highest prices paid for residential real estate in Vancouver, according to real estate officials involved in the sale.
The restaurant site and adjacent parking lots are zoned for at just under 398,000 square feet of residential space. At a sale price of $245 million, that works out to more than $615 per buildable square foot, according to Perry Allen, a real estate consultant involved in the deal.
“It’s almost an acre in downtown Vancouver,” Allen said Thursday. “It’s probably the best site in all of Canada — maybe North America.”

The two sites were purchased by Carnival International Holdings Ltd which trades on the Stock Exchange of Hong Kong. The company listed on the land title as the new owner is Champion Rainbow Holdings Ltd. One of its directors is listed as Chunning Wang at 18/F Everbright Centre in Hong Kong, the head office of Carnival..”
http://vancouversun.com/news/local-news/vancouver-real-estate-white-spot-site-on-west-georgia-sells-for-whopping-245-million

All Hail our new Champion Rainbow Overlords!

#27 Courage and Poo on 12.22.17 at 7:16 pm

The underlying value of Bitcoin and cryptos is the underlying protocol. The conversation used to be, would it work, now the question is, is it worth something? Couldn’t be happier with the progress.

#28 Sigma House Fraternity on 12.22.17 at 7:18 pm

Re: #1 I’m with Stupid

TREB is asking for leave to appeal to the Supreme Court.
Perhaps this is why SigmaHouse is not giving sold prices. I think they are conforming to the previous law that is in place. If you sign up (free) they will send you sold prices automatically by email.

I think this quote for the article explains the law they are conforming to:
“When a federal court of appeal upheld a competition tribunal order that TREB allow its web-based brokers with password-accessible websites, to post sold data, a few companies did exactly that”.

https://www.thestar.com/business/2017/12/14/the-great-real-estate-data-debate.html

#29 Kelsey on 12.22.17 at 7:20 pm

#26…I wonder if Champion Rainbow Holdings Ltd. is a locally domiciled subsidiary and if that is the case, would the government statistics still consider this a foreign purchaser?

#30 tccontrarian on 12.22.17 at 7:25 pm

8 Scully on 12.22.17 at 5:30 pm

I said to my husband buying Bitcoin is like buying unicorn farts. There’s nothing tangible. But my 8 year old corrected me and said that unicorn farts are real – they sell them in buckets of Cotten candy. Apparently that’s a flavour.
*********************************************

One of the funniest posts of the year! Thanks!!

Best Wishes to everyone (except shyster Realfarts)

TCC

#31 Leichendiener on 12.22.17 at 7:26 pm

Happy holidays and a very Merry Christmas to all who celebrate it, and prosperous new year. Thank you Garth et al for a wonderful, insight blog. Bless, bless.

#32 Nonplused on 12.22.17 at 7:30 pm

The thing with fiat money, as faulty as it is, is that it has a somewhat stable if slowly depreciating established relationship with all goods and services. A cup of coffee at 7-11 might be worth $1.50 today and $1.55 next year but it doesn’t swing 35% in a day. Unless you are in Venezuela. So maybe one day it will but not today.

The other thing about fiat money is that despite popular belief it is back by something, debt. The dollars may just be printed up out of thin air but when that is done a debt of some sort is debt is also created. It doesn’t matter if it is a fractional reserve bank or a central bank that is doing it when they print up money someone is obligated to pay it back, whether it be the government or a home owner with a mortgage. As long as that process is managed well it works. It usually isn’t until the “printing” stage that a currency collapses. That happens when too much debt has been created to be serviced and either the debt collapses or the central bank actually starts printing unbacked currency.

With Bitcoin, the only thing to it of any value is that there will only ever be 21 million of them. There isn’t anything backing it. There is no asset in the form of a loan or gold or something it represents. It’s just electrons in a computer memory. So if I thought fiat currency was bad, which I do, Bitcoin is infinitely worse.

Also Bitcoin is not suitable for purchasing anything. Sure, some vendors accept it, but given the high transaction costs who would ever use it to buy a cup of coffee at 7-11? I heard the average transaction cost was running around $20 right now. That might be fine if you are buying a car but not a cup of coffee.

Also, despite the fact that cash is now a small part of total transactions, it is important to still have it. When I am at my favorite “gentlemen’s club”, I don’t want to be using some form of plastic that makes a permanent record in my accounts, the statements of which my wife and children could go through if they wanted (I should lock those up). I suppose I could tip those talented ladies in Bitcoin, but it seems awkward and there is those transaction fees. They could use tokens I suppose like some arcades do but then again there is a line on my statement. Thus, cash still does have it’s uses. When you are trying to get into a busy club through the VIP door and you aren’t on the list a $20 magically appearing on the list still works, I don’t see how Bitcoin ever will. When playing poker with your friends it’s much more fun to have piles of bills stacked high on the table than to scribble out tallies on a ledger to be settled in Bitcoin at the end of the game. There are certain transactions that will always require cash. Even board game manufacturers understand this. You could play Monopoly or Life without the Monopoly money, and I think they even tried an electronic banker in Monopoly but it was a huge fail, but you could also just have someone maybe the banker simulating blockchain by just keeping tallies of everyone’s accounts and transactions on a piece of paper, but it would make the game distinctly less fun and prone to errors.

Also, how would you indicate your interest in getting in line at the pool table in the pub if there were no loonies? How would you bum a cigarette outside a bar? How would you pay your 15 year old babysitter who doesn’t have a Bitcoin account yet? For that matter how would I bribe my 11 year old son to get higher scores on his math drills and do his chores? He doesn’t even have a bank account let alone a Bitcoin account but he has $400 in a can in his room. When he wants a new video game we can’t argue with him anymore because he has cash and he’ll pay for it himself if he really wants it. How’s he going to do that if we get rid of cash? 11 year olds with bank accounts and debit cards so they can house all their $5 “rewards” for a new high score on their math drills? The transaction fees alone would be crippling.

I don’t thing cash is ever going to go away. It will always exist for small transactions or people like my son, my babysitter, or the extremely poor who will always be “unbanked”. Bitcoin cannot replace this. Well maybe it will, my son does have a cell phone, but I’m not sure it’ll happen soon.

#33 Unhinged Trader on 12.22.17 at 7:37 pm

Is this your first Bitcoin correction?

The market likes to shake out the weak hands, newbies, jittery Baby Boomers etc.

Back to 20K by EOY.

#34 Jungle on 12.22.17 at 7:39 pm

Best bitcoin synopsis ever!!

And BTW, wall street does not want to embrace bitcoin and make it more accepted, they just want to short the hell out of it and squeeze money out where it can be made.

#35 Jungle on 12.22.17 at 7:42 pm

The gov should make digital currency issued through banks and payment systems, because it can be tracked and no more black market .IMagine how much more tax revenue they can get now, because no where to hide and not untraceable.

#36 chopstix on 12.22.17 at 7:45 pm

As above white spot to become luxury condo tower…Suites should between $1-1.5/2million once built.

#37 The real Kip on 12.22.17 at 7:47 pm

Soon one Bitcoin won’t even be worth 2-bits.

I’m sticking to my one asset strategy. I slept very well in it last night.

#38 Long-Time Lurker on 12.22.17 at 7:53 pm

Merry Christmas, Garth and blog dogs!

#39 Trading Naked on 12.22.17 at 8:04 pm

I suspect that Goldman, the CBOE, the CME and the like got into the Bitcoin game just to rake in those sweet sweet transaction fees. Also notice the price difference between the CBOE and CME. There’s no way Bitcoin can be real when there’s no method to arbitrage.

#40 bring_it_on on 12.22.17 at 8:16 pm

Math equation of the day:
investing in bitcoin = enjoy one of the wildest roller
coaster rides on the planet

https://www.youtube.com/watch?v=nz6IJbkFJcA

I prefer hoarding cash, and investing in something that I can wrap my head around. Enjoy the break Garth; although I have unrepentant socialist leanings I do enjoy reading your blog (for the most part)…. Focus on personal finances and investing and we will have less clashes….

#41 altcoinbeast on 12.22.17 at 8:17 pm

I actually enjoy the volatility. It’s part of the fun. I’m getting entertainment value out of cryptoasset investing whilst making ridiculous gains – along side my sleepy 60/40 balanced ETF portfolio. Last night I was watching CryptoBobby’s live youtube cast while bitcoin dumped and was cheering as it fell!

Buy in the dips, back up the truck!!

But I don’t really buy Bitcoin. Bitcoin core is boring and already obsolete. My diversified blockfolio is maybe 15% Bitcoin as I only started in Sept this year. You do have to keep an eye on it though as it has the largest market cap, so when it moves, most everything else does too. Research the technology of what’s coming next down the pipe. Moving forward that’s where the best gains will be.

Bitcoin is DOS 6.2, Etherium is Windows 3.1… if you manage to pick who will be the Windows 95 of blockchain/decentralized applications and get in early, you’ll be in VERY good shape this time next year.

Like anything, don’t invest in what you don’t understand. Read the white papers of each asset you’re going to put your money in, but more importantly, it’s about the team involved. To make consistent gains, you have to be on it. One year of stock market volatility happens every 24 hours in crypto’s. I would advise against day trading unless you’re already a pro stock day trader – even then… eesh.

Golden rules for Cryptoasset investing:

1. Don’t invest more that 5-10% of your net worth
2. Research, research, research before you do anything.
3. Dollar cost average in over 3-6 months.

For some great resources, subscribe to CryptoBobby and DataDash on youtube to stay ahead of the herd and MSM.

Welcome to the new frontier.

#42 TheSecretCode on 12.22.17 at 8:22 pm

Got the top graphic cards…

Got a power supply…

Got a microprocessor and a motherboard…

Got towering drive…

I put the ram in the ram slot…

Drive in the larger bay…

Topped it off with two fans, like a Canucks game…

Crudely assembled a rig, like a BP engineer…

#43 Danny on 12.22.17 at 8:25 pm

Yes I took your advice on Bitcoin as very Questionable especially these days and as you noted “The market is completely driven by speculation. It’s gambling, not investing. ”
Mark Twain wrote about similar times when he went out west during the silver rush ….times of serious speculation.
Many sheep were desperate and suffered big time.

Of course Twain also lost everything….later tried working for the press….quit soon after when his editors kept inflating and exaggerated the attacks by American natives to justify future attacks against the natives. Recorded FAKE news.
All written in his book “Roughing It”
Mark Twain had some integrity left those papers and become a story teller and a comedian of sorts on stage.

Seems the phenomenon of “snake oil salespeople ” ….is alive today in a different formats…especially south of the border.
A White House ….a year of instability…..no stopping revolving door of staff never seen before. Nobody can deny that.

#44 Bitcoinnaire on 12.22.17 at 8:32 pm

Bitcoin has “crashed” 30% SIX TIMES in 2017. Each “crash” has been followed by an increase of: 76%, 237%, 183%, 165%, 152%.

Today’s dip was necessary to allow it to push to newer highs given the parabolic increase. If you still don’t understand why it’s undervalued at these prices, you deserve to sit on the sidelines and watch it reach higher highs.

#45 TheSecretCode on 12.22.17 at 8:36 pm

Pick me a digital wallet for holding all of my amounts…

Read up on all the ways, to open lots of accounts…

I got a fear of inflation…

But this is crypto baby, central bank decentralization…

The script I flipped it…

Laptop encrypted…

My life was rotten, now all my cotton’s egypt-ed

#46 Tony on 12.22.17 at 8:42 pm

Re: #14 conan on 12.22.17 at 5:54 pm

I usually buy when something that isn’t manipulated in priced drops 33 percent from its highs. I was in buying today and Goldman usually goes long everything that’s high in price and shorts everything that’s low in price.

#47 TheSecretCode on 12.22.17 at 8:45 pm

Even on my vacation, I’m crypto supplying…

Call me gentrification the way I’m block-modifying…

From geek to chic…

From basic to asic…

From basement squatting to yachting…basin to basin…

From no friends and depression…

to peer-to-peer legend.

#48 Loonie Doctor on 12.22.17 at 9:05 pm

Everyone who pays taxes does support OAS – some just alot more than others and they are generally the same people who will never receive much from it. Something like 54% of the income tax collected comes from the top 10% of earners.

I do wonder how many from the lower percentiles of earners recoup their taxes via collecting OAS, making it more like a pension contribution than tax.

I am not saying that it is wrong – this is how a progressive tax system is supposed to work to provide a social safety net for our society. I just hope that with time that we don’t progress from progressive taxation to punitive taxation when it comes to taxing production/income as that would discourage productivity.

#49 Mark on 12.22.17 at 9:08 pm

I don’t own any CAD$. I don’t own any USD$. And I don’t see any reason to own Bitcoin either.

Occasionally I’ll make one of my investments cough up some CAD$ or USD$ to pay the bills or taxes. And if I need to make my investments cough up a few Bitcoins to pay my bills, such will happen. But otherwise, there’s no reason to hold a net positive balance of any sort of fiat or not-so-fiat currency.

#50 Terry on 12.22.17 at 9:16 pm

A very Merry Christmas and Happy new year to you and your family Garth. You produce great articles tweaked just right with a fine writing style! God Bless.

#51 Loonie Doctor on 12.22.17 at 9:24 pm

#2 Unbalanced

$225K/yr in 2015 was top 1% in Canada.

#52 April B on 12.22.17 at 9:26 pm

I’m predicting that South Vaughan will become the new Toronto. Expect to pay over $999,000 for a 1 bedroom condo near Vaughan Centre Station.
There are already countless flyers at York University advertising rooms to rent from $1,200 to $1,500 OBO per month.
Steeles West will become the world class city like the downtown core of Toronto.
I can see it—We’ll see those cranes in the sky that will construct luxurious 55 to 100 floor condos.
Keele to Weston from Sheppard to Steeles will become the next Bridle Path. Jane and Finch will become the York Mills of North York.
I’m buying a condo now in Vaughan before I’m priced out of the real estate in Canada.

#53 Arto on 12.22.17 at 9:26 pm

Comrade Garth, what is your opinion of the following?

“Nearly one in every four condo towers that have gone up in the past two years is wholly owned by non-residents, as they account for 23.7 per cent of new condo purchases”

http://www.richmond-news.com/news/new-richmond-condos-snapped-up-by-foreigners-1.23129447

Why would anyone get fussed over how many unbuilt condos in one suburb of our third city are owned by non-residents? – Garth

#54 When Will They Raise Rates? on 12.22.17 at 9:33 pm

Lack of backing by governments and central banks didn’t prevent BTC from going from 10 cents to almost $20,000… But now that you’ve finally noticed bitcoin (years after the train left the station) you cite the very reasons for its rise as the reason it can’t go higher. I see.

No sane person should invest in this. Be careful, kid. – Garth

#55 IHCTD9 on 12.22.17 at 9:38 pm

Ubul on 12.22.17 at 3:44 pm
#185 Screwed Canadian Millenial on 12.22.17 at 1:58 pm

#148 IHCTD9 on 12.22.17 at 9:39 am
#133 Centre Wing on 12.22.17 at 7:30 am
SCM thinks Chrétien and Martin are anything close to today’s regressive left liberals?? This idiot is more delusional than I thought.
___________________________

She’s not too smart, that’s for sure.

—————-

Haha you called me a girl even though I’m a boy. Straight outta grade 1.

She hates it when you do that. – Garth

=====

If it was tweeted it would have been a demeaning tactic straight from Trump (before he was elected and started to watch it). It’s a generational thing of old boys.
—————

Tactic?

SCM is female so I refer to her as such.

She just wants a bit of redundant anonymity so says she’s “a boy”.

#56 calgarydude on 12.22.17 at 9:51 pm

Ripple has some big backers in the financial sector. It loses lots of the anonymous benefits of other currencies.

The current crash is similar in % drop of the crash 6 weeks ago. 30% +/- is pretty standard. Everyone who has been in crypto for a few years is not even talking about the current drop.

Bitcoin is still up in the last 30 days as I write this.

I think that Bitcoin is old and slow, but there are other cryptos which will rise in value. This is what the common people want to invest in now because they are scared or cannot afford anything else.

When 100billion USD per day is being put into crypto daily, it seems crazy that there is not opportunities in the space.

#57 X Stinked on 12.22.17 at 9:56 pm

The future of legitimate Cryptocurrency: is NOT Bitcoin, imho.

Most rational people tacitly understand that the future of money is going to be some type of crypto currency.
At the same time, most rational people are not going to put their legitimate hard earned money into a secret handshake club run by secret agents, without regulation or backing; however, they will adopt a crypto that is safe and easy to use, secure, and backed and distributed by familiar faces, banks, and governments.

I like that my money is backed by the Canadian Gov., and look forward to a future crypto currency that is also backed by the same.

Check out the links below to see what is going on over at LINUX and you decide what the logical future is (keep in mind, well over 90 percent of the world’s top 500 supercomputers run Linux).

What I see is trusted familiar faces collaboratively designing open source blockchain technology. Technology that they have the know how, networks, and infrastructure to distribute; the ability to effectively scale rapidly; and the above board legitimacy that will ultimately make their platform the only smart choice for above board business enterprise, banks, governments and individuals.

https://www.linuxfoundation.org/projects/

https://www.hyperledger.org/members

https://www.hyperledger.org/resources/videos

#58 45north on 12.22.17 at 10:01 pm

Hans: If it turns out that the gov’t of Canada and others create a cryptocurrency backed by the gov’t, would that change your mind about it as an asset class?

Hans: This whole thing could be co-opted by governments and undermine the anonymity that so many are seeking with it.

which is what DiMartino Booth says:

Danielle DiMartino Booth: at the 19:00 minute mark: talking about block chain technology: “it scares me that central bankers are studying it very closely to figure out precisely how it works. So that when the time comes, they can march right in and do an outright monetization of the debt. They’re going to be controlling our spending using the block chain technology.”

http://www.howestreet.com/2017/11/22/bubbles-capital-risk-and-the-panic-building/

I’m thinking Hans is in the banking business.

#59 When Will They Raise Rates? on 12.22.17 at 10:09 pm

No sane person should invest in this. Be careful, kid. – Garth

I already did… A long time ago. Been playing with the house’s money ever since. And I’m making a killing. Pointed it out on this very blog a couple of years ago… All I heard was… Crickets.

I bought bitcoin for the same reason I stack PMs… Lack of faith in governments and central banks. It’s my insurance for when the inevitable happens… Never thought it would go this high this fast though.

But none of my actual income goes into cryptos. No need. Already loaded with them and earning more every day. If it goes to zero I will have lost nothing. But I suspect it will go to $100,000 before it goes to zero.

Now, people taking out mortgages to buy bitcoin – that’s a different story… Lol those people can’t be helped.

#60 superDuper on 12.22.17 at 10:11 pm

It’s true that Bitcoin isn’t backed up by anything. But in all fairness what were Puerto Rican bonds backed up with? Shady politicians?

#61 Newcomer on 12.22.17 at 10:13 pm

#53 Arto on 12.22.17 at 9:26 pm
Comrade Garth, what is your opinion of the following?

“Nearly one in every four condo towers that have gone up in the past two years is wholly owned by non-residents, as they account for 23.7 per cent of new condo purchases”

That’s like saying one in 50 cartons of 2% milk is pure fat. Sounds alarming but there is no need to get freaked out because it’s not true.

#62 IHCTD9 on 12.22.17 at 10:26 pm

#48 Loonie Doctor on 12.22.17 at 9:05 pm

I just hope that with time that we don’t progress from progressive taxation to punitive taxation when it comes to taxing production/income as that would discourage productivity.

—————————

Bill and Justin are hard at work on this. Can’t get any more out of the 1%ers as these folks have a buffet of options to park their stash un-taxed somewhere offshore. Why not? If they get caught, the CRA will get on their knees and beg them to just pay some of it in return for immunity from prosecution.

At the same time, it’s getting harder to get more out of small businesses too as we’ve recently seen. Everyone is getting louder, every avenue to increased taxes seems to lead to a political lightning rod. Tax freedom day arrives later every year, and if wage growth stays low, it’ll be just about 50% for the average family in just 5 years.

IMHO, it’s punitive right now. Only a matter of when the proletariat start clamping down. Then we’ll get to see what the true colours of our collective leadership really are…

#63 Smoking Man on 12.22.17 at 10:49 pm

Took the wife for a ride on my plasma flier tonight.

This is what it looked like from the ground near our place in Corona Del Mar.

https://youtu.be/5IbBU1WpFFk

#64 Deplorable waste of space dust on 12.22.17 at 11:06 pm

#63 Smoking Man on 12.22.17 at 10:49 pm

Took the wife for a ride on my plasma flier tonight.

This is what it looked like from the ground near our place in Corona Del Mar.

https://youtu.be/5IbBU1WpFFk

you work for Elon??

http://abc7.com/technology/final-spacex-rocket-launch-of-2017-lights-up-socal-sky/2813922/

#65 Will Crash on 12.22.17 at 11:06 pm

“Don’t buy bitcoin. You know it is going to crash!”

https://www.youtube.com/watch?v=XbZ8zDpX2Mg

#66 Bottoms_Up on 12.22.17 at 11:08 pm

#27 Courage and Poo on 12.22.17 at 7:16 pm
————————-
Bitcoin will never work as a currency.

It has a strict limited supply, and not everyone believes it to be currency.

When was the last time the US dollar swung 35% in value in one day?

Bitcoin isn’t a currency, its a commodity of little inherent value.

Just ain’t gunna happen.

#67 Ace Goodheart on 12.22.17 at 11:09 pm

RE: Bitcoin: this stupid thing is actually going back up again. There are still enough light headed folks out there who figure this latest dip is a buying opportunity.

People: try to sell your bitcoin!

The exchanges don’t even let you sell it. You can only buy it. Who do you think you are buying it from?

In other news, they finally finished the long awaited Spadina subway extension up to Vaughan Corporate Centre in Toronto. A 3 billion dollar subway, which I rode on the first opening day, getting off at each and every stop.

It is amazing. One of the stops is actually located in the middle of a field (I think I saw cows). One is beside a highway that has no sidewalks. One opens up to an as yet unfinished bus rapid transitway. When I walked in either direction from this brand new, billion dollar stop up in the middle of nowhere in Vaughan, I noted several large condo buildings, which no doubt would be full of would be subway riders.

Unfortunately, the sidewalks did not extend to any of the condo towers. So it was not possible to walk from the subway to the condos. You would have to drive (luckily, the TTC does provide a large “subway parking” lot, so you can drive the approximately 500 metres down the street from your condo, park your car and hop on the subway – very convenient).

I managed with much difficulty to get across the highway 7 bridge over the 400 highway (again, no sidewalks at all on either side) trudging through snow and almost being hit by cars. This bridge is about a 5 minute walk from the Vaughan corporate centre subway stop. On the other side there is a huge shopping complex with a massive theatre, a Costco, many restaurants and stores.

It is literally a 7 minute walk from the new Subway station.

Unfortunately, as per the other close attractions, it has no direct walking connection to the subway as there are no sidewalks. So you could not take the subway to this large shopping complex. You would have to drive.

Luckily it is designed only for cars, with again nowhere at all to walk, and has a massive series of completely full parking lots also.

I pondered the fate of this orphaned subway station up on highway 7 (that could have been built entirely above ground as there is nothing in the way). It is beautiful, and close to many things including huge shopping complexes and many condos.

Unfortunately, as there are no sidewalks that lead to anywhere, no one can walk to or from it. The only people who will be able to use it, are people who have cars.

#68 dM on 12.22.17 at 11:11 pm

I’m not in bitcoin. However, if you apply conventional charting techniques to the BTC chart you will see two large gaps. Gap one at 8K, Gap 2 much much lower. The probability of a gap being filled over time is a little higher than my risk tolerance.

#69 Keith on 12.22.17 at 11:16 pm

@Garth re #53

Why would anyone get fussed over how many unbuilt condos in one suburb of our third city are owned by non-residents? – Garth

Because it’s a trend, or not.

#70 Blackdog on 12.22.17 at 11:20 pm

Nonplussed, re: ” When I am at my favorite “gentlemen’s club”, I don’t want to be using some form of plastic that makes a permanent record in my accounts, the statements of which my wife and children could go through if they wanted (I should lock those up). I suppose I could tip those talented ladies in Bitcoin, but it seems awkward and there is those transaction fees.”

Your wife may or may not know, and if she does, likely doesn’t care as long as the kids don’t know. She is preoccupied with getting it on with the guy she met on AM and is happy you think she is menopausal and just not into sex anymore…hahaha.

#71 Jason on 12.22.17 at 11:27 pm

Your right to compare this to the dotcom boom. And like you said it’s not different this time. But like the dotcom boom the next Google and Amazon will emerge from this space. Ripple is a good bet. It’s nothing like Bitcoin. It actually has a use and is backed by a company that wants it to succeed. I’m long on XRP. I’ll let you know how it went in 10 years.

#72 Blackdog on 12.22.17 at 11:36 pm

Guys have no clue how women use hormone issues for lack of interest in sex, when reality is they are just not interested in the guys they live with day in day out, over an over again. Boring.

#73 James Kook on 12.22.17 at 11:45 pm

>>>>> ”

So where does the money come to sustain OAS?

Thank the doctors and other 1%ers! – Garth

Quite opposite, Garth.
Doctors actually make situation much worse with OAS,
because they help to live longer :-)

Let alone, the doctors grab money from patients, leaving less for the living.

#74 maka on 12.22.17 at 11:48 pm

Some buyers/sellers try to avoid Bitcoin exchanges due to higher commission. Just post an ad on Kijiji. Meet the stranger at the bank.

https://www.kijiji.ca/v-buy-sell-other/markham-york-region/buying-bitcoin/1322452516?enableSearchNavigationFlag=true

#75 saskatoon on 12.22.17 at 11:57 pm

So where does the money come to sustain OAS?

Thank the doctors and other 1%ers! – Garth

doctors?

no conventional doctor in canada contributes to the cost of government.

#76 Ponzius Pilatus on 12.23.17 at 12:49 am

Forget about bit coin.
Just registered for a $25 coupon from Loblaw.
My wife and all my children and my friends have done the same.
The bible says “give us our daily bread”.
Not let’s price fix our daily bread.
Register en masse, blog dogs.
And make the price fixing bastards pay.

#77 Russ on 12.23.17 at 1:03 am

It’s a little early for the Merry Christmas wishes.
The dude doesn’t even take off to do the night flight for a couple o’ days yet.

Let us appreciate Winter Solstice for a bit.

Celebrate like S. M. & his squeeze.

The little woman and I do the fire thing, with smokies and beer.

#78 Big Daddy on 12.23.17 at 1:18 am

I am mounting an expedition , and will be selling crypt-coins to finance the recovery of a hard drive holding 127 million dollars in bitcoin buried in an English tip…..who’s with me. ‘Dump-diver coins’ are valued at $1000 each and there is limited supply. Reply #goshimstupid.com for instructions on getting in…..before you’re left out. This is truly a no brainer…..reserved only for investors with no brains.

#79 altcoinbeast on 12.23.17 at 1:48 am

fiat is great. check out this sh**coin

https://twitter.com/thefaceberg/status/942452929620877312

#80 Smoking Man on 12.23.17 at 1:50 am

Space x my ass. Just look at shuttle and Apollo lunches.

This babe remembers the show me and the boys put on in Vegas last year.

Wait till new years eve in Vegas this year. Keep them cameras rolling. Full on Nictonite show.

https://youtu.be/HAXSjwbDgRw

#81 will on 12.23.17 at 2:09 am

I just ran out of scotch.

#82 jane24 on 12.23.17 at 2:50 am

Garth, bitcoin is not a speculative commodity it is literally nothing at all.

Yes I am one of those sad folk who use folding money and write cheques (spelt the British way) and go to my physical bank. I do it for two reasons. One to save jobs from automation as without employment we will be in a mess, who/what literally will be paying the taxes, and secondly because through life I have learned that this is the easiest and most disciplined way to control the flow of your personal money. Such practices make your money real to you. No credit card bill shocks.

#83 T on 12.23.17 at 2:52 am

Fools and their fantasy money…

#84 Dan on 12.23.17 at 2:54 am

#4 – Billionaires.

#85 Rexx Rock on 12.23.17 at 3:02 am

LFIN from $5 to $140 in a week!Crypto Mania is here baby!!Just like the pot stocks are exploding.Forget about a balanced portfolio paying 1% to 3%.Weed,ACB,APH,MJN,FTFT,RIOT,NETE.Ride the the wave and get rich or stay poor.

#86 Carlyle on 12.23.17 at 3:16 am

I went with a Crypto Index Fund containing top 20 coins, rebalanced weekly.

https://crypto20.com/en/

#87 Contrary Canadian on 12.23.17 at 3:35 am

The theory behind bitcoin being limited in supply to 21 million coins by 2040 is kind of silly. Simple math question: how many times can you divide 21 million by 2?

Simple answer: there is no limit. I realize that there is an artificially imposed limit of 0.00000001 BTC, which makes up 1 satoshi, the smallest amount currently allowed for this currency.

Just keep in mind that this is a limit imposed by programmers, which can be lifted at any time, which is why there are an increasing number of “hard forks” rolling out to change the rules for this currency.

Anyone who equates bitcoin to gold (which by the way I think is a ridiculous investment) doesn’t get the math. You can slice up any digital currency into as many pieces as you want. The available supply is essentially unlimited given this so all the discussion of how cryptocurrencies are immune to monetary inflation is pretty easily disproven.

I have no doubt that over the next 5-10 years there will be a wide variety of applications for blockchain technology and even some digital currencies that mature into applications that have utility and disrupt the status quo of traditional fiat currencies.

The challenge is figuring out which one. From my perspective (and yes, I have bought and sold a variety of different cryptos including bitcoin), given that there are currently 1377 cryptocurrencies and growing:

https://coinmarketcap.com/all/views/all/

the odds of any one currency being a big winner long term are a lot lower than going down to your local casino and putting all your money on 33 black.

But I have to admit, gambling on them is more fun because it’s that much more unpredictable. Just don’t put any money in you’re not prepared to lose…

#88 Karma on 12.23.17 at 4:10 am

#18 LivinLarge on 12.22.17 at 6:20 pm
“Yea, what Four Fingers said!!!

Don’t single out doctors or your 1% er cohort for special glorification. Each and every one of us who pay taxes are footing this bill.”

But not all taxpayers’ contributions are equal. Hence, praise for those hardworking doctors and others who make plenty of money is justified.

#89 down_boy on 12.23.17 at 4:44 am

Mr G
I can tell you prefer pavement.
It would be fun to show you some glorious sights out west where few have gone before.

#90 Where's The Money Guido? on 12.23.17 at 5:28 am

Once upon a time my Credential “Ethical” Mutual Funds were good as gold and available to cash in asap until the Great Recession hit and you couldn’t get your money out, at least I couldn’t. Took more than 2 months to see transaction done and any money and was sold only when the funds hit bottom. I was contacted the day after it hit bottom and was told it sold the day before. The day after it sold it suddenly rebounded and never looked back. Hmmm, what a co-in-kee-dink eh. Lost 38% from when I put the trade in to sale. Contacted IIROC, MFDA, all the rest, crickets. Who’s saying when the run happens you’ll get your trade done. Don’t believe it. Automatic eh? Done by a ‘puter eh. One click. Sure, it’ll trade, uh huh.
On another note, I got a PC Card renewal in the mail this week with a new number. A card I never asked for. I phoned and asked the CSR why, and she told me that there was a “compromise” somewhere where I used it.
I told them all the companies except 4 transactions (Esso, Canadian TIre, BC Liquor Store and Costco) were with Loblaws related companies and all were done this week except Esso which was 2 months ago, after I got the card. She couldn’t tell me any details and wouldn’t fill out a service request to get to the bottom of it. I’ve been having a disagreement with their PC Plus points accounting details on their website where they bundle points if you use their PC MasterCard more than once a day. Cannot parse purchases with points collected. Too much grouping of points.
Methinks this is related to the bread price collusion scam or PC Plus points accounting that they’re trying to deflect from public interest.
It’s just way too convenient what’s been going down lately to say co-in-kee-dink, don’tcha think.
What do the blog dogs think.
Was one of Loblaws companies hacked and they’re trying to hide it, or is my spidey sense completely wrong? Especially since they’re combining their points with Shoppers Drug Mart points.
I have spoken with others who have a problem with the details of PC Plus points at their site also.
Supposedly getting a phone call tomorrow. Will update.

#91 Bhad Bhabie on 12.23.17 at 6:53 am

Before The Coin
dog had no man (now flip it and reverse it)
then He turn water to wine

prophets now sayin
the magis be makin
somethin 4 nothin

lambs so dumb
story so old
bye bye foolgold

I seen it comin
what we turn
is wine in2 urine

PS
SecretCode – ask Loonie Doc give u somethin for arrhythmia

#92 Big Daddy on 12.23.17 at 6:56 am

Scenario….midterm elections create ideal catalyst for uncertainty and US stocks correct. What happens to CPD? G Man…..what do you think?

#93 Bhad Bhabie on 12.23.17 at 6:57 am

Before The Coin
dog had no man (flip it and reverse it)
then He turn water to wine

prophets now sayin
the magis be makin
somethin 4 nothin

lambs so dumb
story so old
bye bye foolgold

I seen it comin
what we turn
is wine in2 urine

PeeS
SecretCode – ask Loonie Doc give u somethin for arrhythmia

#94 guil caston on 12.23.17 at 7:46 am

My coworker from the USA is retuning home for the winter and showed me the house he is buying in Alabama…. $240 g, $1300 yearly taxes, mortgage for the life of the loan, right of the interest, and summer all the time… ahahaha beautiful new house, wrap around porch. double garage, and pool, very nice area…. WE ARE POOCHED… here are a couple of example

640_boomver_1_802942-1.jpg
640_boomver_2_802908-1.jpg

#95 Loonie Doctor on 12.23.17 at 8:13 am

#68 IHCDT9

Most of the 1% are the “working 1%” in Canada. It is the really really wealthy, like Trudeau and Mourneau, who have enough money (inherited or via investment) to make offshore options financially viable. Of course, if we make taxes high enough, that balance could change. I doubt they will ever seriously go after offshore since that is where the money behind their power comes from.

People with money adapt to taxes. That is how the CCPC became so popular for high income professionals. Personal tax rates of 50% plus made the expense and complexity worth it. Offshore seems orders of magnitude more complex and expensive. I am also personally uncomfortable with the ethics of it. I personally feel that at 54% marginal rate that it is punitive now too, but fairness is a matter of opinion and perspective as we’ve seen on this blog before.

In practical terms, I don’t think that they can milk much more out of this group (I am a member of it) without killing the goose that lays their golden eggs. Given the high barriers of entry to offshore tax sheltering, my reaction has simply been to work and spend less. For every action, there is a reaction.

#96 unbalanced on 12.23.17 at 8:23 am

I just want to thank all the people who responded to my questions on Old Age Security. I will be dead one day and I will miss out on the GOVERNMENT ripping off the little people.

#97 crowdedelevatorfartz on 12.23.17 at 8:30 am

@#8 Scully
“my 8 year old corrected me and said that unicorn farts are real – they sell them in buckets of Cotten candy.”
++++++
Rotten Cotton candy?

Does anyone know if a unicorn will fit in an elevator?

#98 crowdedelevatorfartz on 12.23.17 at 8:34 am

@#44 Bitcoinaire
“If you still don’t understand why it’s undervalued at these prices, you deserve to sit on the sidelines and watch it reach higher highs.”
+++++

Speaking of “higher highs” what kind of “aire” are you breathing?

#99 Wrk.dover on 12.23.17 at 8:37 am

#94 guil caston on 12.23.17 at 7:46 am
My coworker from the USA is retuning home for the winter and showed me the house he is buying in Alabama

———————————————-

Roy Moore supporting neighbours, every last one of the white ones. Meh, he can have it, I prefer suffering snow to that intolerant noise.

Reason? Student of Garth.

Thanks Garth, Merry Christmas

#100 kman on 12.23.17 at 8:51 am

Winnipeg to become the next Epicenter Of The Next Bitcoin Rush:
http://www.zerohedge.com/news/2017-12-22/why-canadian-city-could-be-epicenter-next-bitcoin-rush

The story of bitcoin:
https://www.youtube.com/watch?v=7Jts0OMAhTw

#101 Ace Goodheart on 12.23.17 at 9:27 am

RE: #94 guil caston on 12.23.17 at 7:46 am

“My coworker from the USA is retuning home for the winter and showed me the house he is buying in Alabama…. $240 g, $1300 yearly taxes, mortgage for the life of the loan, right of the interest, and summer all the time… ahahaha beautiful new house, wrap around porch. double garage, and pool, very nice area…. WE ARE POOCHED… ”

Yeah the Toronto prices are insane for literally 8 weeks of summer, a month of spring and fall and the rest of the time you freeze your nuts off (literally, I use a sock when I go for walks now).

I heard it is going to be -30 celcius by Dec 25th with the wind chill. Another “polar vortex”. Why anyone would pay a mil or two for some run down dilapidated dump up here, in the middle of this frozen wasteland, is beyond my comprehension.

On the brighter side, I am learning more and more about “snowbirds” and “winter expats” and how easy and cheap it is to rent a place basically a million different spots down in the Central American tropics.

I had been having a lot of fun with Cuba. You can go there for initially about $500.00 per person per week, and if you want you can just stay there for three months, for a very good price, and just live at the resort. Free all you can drink booze, free all you can eat food, and sun and sand every day. It is actually cheaper to do that, then to rent a place in Toronto for three months, and that doesn’t even include buying food in Toronto (and of course buying alcohol from the Ontario Government at 1000% markups).

There is no reason to be here in the winter unless you are working. It is cheaper to head south and rent for the winter, or live on one of the all inclusive resorts.

#102 Nick B on 12.23.17 at 9:36 am

The fact that Bitcoin is not backed by central banks or a government is the exact reason it’s attractive to people. Garth, you’ve served in our government and thus put your faith in our large institutions. When I look around, I see a loss of faith in our central authorities who believe leveraging tomorrow for today is the only way to operate. Looks at Venezuela, Cyprus, etc, people who blindly put their faith in central authorities paid a price. Also, when you can move money across the planet is minutes versus days (wire transfer, etc.), you know the financial system is ripe for technological innovation. Many reasons to invest in this space with play money. Unfortunately, I envision central banks will adopt their own crypto’s and outlaw most others, that way it will easier to impose their negative interest rates on people and stimulate more borrowing and consumption in the never ending pursuit of growth. My rant is done!

#103 LivinLarge on 12.23.17 at 10:07 am

Sorry Karma but “But not all taxpayers’ contributions are equal. Hence, praise for those hardworking doctors and others who make plenty of money is justified.”…this is factually incorrect. Entitlement programs like OAS are paid from general revenues and therefor unattributed and faceless.

Yes, I realize that many people, including yourself, reason that if one cohort pay a greater quantum of actual tax dollars then more of their dollars are used to pay for the entitlement payments. That’s just one of those things that looks one way but really isn’t.

Because the funds source is unattributed general revenue, the source is in reality equally apportioned across the entire tax base the same way that buying new subs or paying for court judgements doesn’t come inequitably from one cohort or another.

So, in reality the poorest of the 99%ers is contributing same as the highest 1%er is.

#104 The Technical Analyst, CSTA, CPD on 12.23.17 at 10:12 am

#14 conan on 12.22.17 at 5:54 pm
“I call $600 – $1000 the bottom for bitcoin, and then worth buying again.”

Not picking on Conan, more highlighting the idea. Gold and Crypto crowd are closely related in ideals… So, I have to ask…

$1000 for 1 unit of digital currency.
or
$1250 for an ounce of physical gold?

For me, I’m not in either crowd, but I think it would make an interesting debate.

#105 The Technical Analyst, CSTA, CPD on 12.23.17 at 10:19 am

Just wanted to add:

I feel bad for those who got into the bitcoin rush without asking an advisor or understanding the investment. Goldman Sacs 2 weeks ago stated people were mortgaging their homes to invest in BTC. Losing 50%+ is never fun. The biggest mistake speculators will make now is NOT knowing when to cut their loss. Many will ride it down like Nortel.

If BTC operates like any stock, the next open it should pop higher on “buy the dip”, then if we don’t get a higher high ($20k+) and see a lower low (sub $10k) then it is screwed.

My financial advisor advice: If you are in BTC and can’t take the loss and your risk tolerance isn’t uber high, sell on the pop. The next pop could be a real bang.

#106 support level on 12.23.17 at 10:21 am

the pop lasted 24 hours Garth, back to 15k

It was 20k when the week began. Don’t do the happy dance yet. – Garth

#107 Doug in London on 12.23.17 at 10:38 am

Why would anyone buy overpriced Bitcoin when they could buy stocks that are or have been on sale like ENB-T, GE-NY, or T-NY? As of now, ENB-T and T-NY are both above their 52 week lows, and GE-NY is bouncing around just slightly above it’s 52 week low. Unlike Bitcoin, these stocks actually have a good chance of holding their value and now the punch line, they actually pay out dividends!

#108 millmech on 12.23.17 at 10:46 am

#52 April B
I hear you that is why I am looking at a house in an interior BC. It is small by Vaughan standards,3bdrm , 2bth, around 1100sq ft comes with a 14×18 shop and 5acres of land. The price is outrageous as and I have no idea how people can possibly afford lakefront property for $170,000.Just imagine those crushing $730/mth payments although yours will be a touch higher at $3900/mth for a kennel sized unit complete with its own bedbug colony.
Thanks again for the info on our rapidly depleting resource!

#109 not so liquid in calgary on 12.23.17 at 10:59 am

I’m stupid on 12.22.17 at 5:21 pm

Who in their right mind would commit 100% of their net worth on an unproven “asset class”?

=======================================

a “pump and dumper” would

#110 not so liquid in calgary on 12.23.17 at 11:07 am

#8 Scully

=========================================

loved your comment. nothing like an 8 year old to put things into perspective!

#111 not so liquid in calgary on 12.23.17 at 11:16 am

Mr Garth,

love your blog; however, every time you mention bitcoin, your comment section looks like the spam folder on my email account.

my parents couldn’t put me in a bubble, they had to let me make, and learn from, my own mistakes. these bitcoin speckers will be eating their words soon enough.

#112 Guy in Calgary on 12.23.17 at 11:46 am

Completely normal movement from Bitcoin. A 45% correction is nothing new. It is still up huge on the year and huge on the Month. Look at the chart, IT WAS A LITTLE DUE.

My main gripe with BTC is the “limited to 21M” argument. Even if they do not change the protocol, there are many other coins. There is nothing intrinsically more valuable about BTC. FOMO is driving up the price and dips like these will be purchased. Should be interesting to see what happens when (if?) the big players get involved.

Goldman also said it was suspending the crypto desk for the time being.

I have dipped my toes into crypto, just a small %, if it goes to $0 oh well. Makes keeping track of it more fun and adds a little spice to the portfolio. Holding is easy since it is such a pain to sell and the main exchanges shut down when there is a lot (relatively speaking) of volatility.

#113 Guy in Calgary on 12.23.17 at 11:48 am

“I feel bad for those who got into the bitcoin rush without asking an advisor or understanding the investment.”

LOL where do I find a professional crypto advisor?

#114 Timberr on 12.23.17 at 11:53 am

There’s more to this than just bitcoin. OCFX gives a good snapshot of how many crypto “currencies” are out there now and current “valuations”….

https://onchainfx.com/

#115 JR on 12.23.17 at 11:55 am

Nice try Garth, but I can sell my bitcoin on QuadrigaCX 24 hours a day and have the canadian dollars in my bank account via e-transfer or bank wire within a day or two. My ETFs on Questrade are pretty liquid, but there is no comparison.

ETFs also aren’t available at an ATM.

Eventually landlords and merchants will realize that bitcoin payments can’t bounce, VISA can’t pull the bitcoins back out of your wallet, and you don’t need to pay a processor 3% of every sale.

In the meantime the growing pains continue, but who said adolescence wasn’t all about pain?

#116 TurnerNation on 12.23.17 at 12:01 pm

Almost all Millennials I work with are into buying Crypto currencies via shady websites and exchanges. Never selling.
They forget the first rule of trading: always pay yourself first.

(In this fight the rule of Balanced Ports is: Never talk about about Balanced Portfolios.)

#117 TurnerNation on 12.23.17 at 12:05 pm

#67 Ace Goodheart it is very likely that subway line is a politicial decision: driving into the heart of regions controlled by certain important MP/MPPs.

The desperately needed Downtown relief line never will happen here. Of course the downtown core votes NDP and Green party. That’s teach em.

Et tu, J. Fantino?

#118 FOUR FINGERS WATSON on 12.23.17 at 12:21 pm

OAS is paid for from “General Revenue”. So is health care. Should frequent health care users such as people with diabetes or cancer pay more for health care than someone who suddenly drops dead from a stroke and never saw a doctor in their life ?

I pay premiums for health care. None for OAS. – Garth

#119 fancy_pants on 12.23.17 at 12:31 pm

see how the regulators spoil a party

#120 Unhinged Trader on 12.23.17 at 12:47 pm

Oh look, it’s already recovered.

Made a modest 100% gain since yesterday on one of my obscure Altcoin bets: ICX.

Dec 17 – $20k. Dec 23 – $15k. Some recovery. — Garth

#121 FOUR FINGERS WATSON on 12.23.17 at 12:50 pm

I pay premiums for health care. None for OAS. – Garth
…………………………..

So do I. Token premiums. Majority of funding comes from general revenue. Should the sick and infirm pay higher premiums?

Should we pay people just because they age? – Garth

#122 Rooster on 12.23.17 at 1:15 pm

#118 FOUR FINGERS WATSON on 12.23.17 at 12:21 pm
OAS is paid for from “General Revenue”. So is health care.

I pay premiums for health care. None for OAS. – Garth
*********

I could be wrong but the $900 per year max you pay OHIP barely covers your GP’s business partner’s cell-phone bill ( I know it’s gettin old ;-). That’s just beer money to us 99%’rs.

OAS is what keeps you from having to build that in-law suite. A fair price to pay IMHO. I do think the clawback threshold should be cut in half, even though I would Iose. How many here would agree to that? 1% ?

#123 Roadrunner12 on 12.23.17 at 1:15 pm

#104, the Technical Analyst

“Not picking on Conan, more highlighting the idea. Gold and Crypto crowd are closely related in ideals… So, I have to ask…
$1000 for 1 unit of digital currency.
or
$1250 for an ounce of physical gold?”

Cryptocurrency= Tulips

It would have been more appropriate to have chosen a computer chip with 101010101s or a tulip rather than a gold coin as the true face of cryptocurrency. However I give full marks to the makers of this scam in trying to attach value in attempting to mimic gold.

“$1000 for 1 unit of digital currency.”

We need a little more specifics as to an exact unit (eg $1000 and exact unit amt) and of which digital currency (should we also attach more value to one cryptocurrency scam than another cryptocurrency scam and if so why or why not?)

https://coinmarketcap.com/all/views/all/

#124 Dissident on 12.23.17 at 1:18 pm

This bitcoin rant needs some laughs.

Enter, JP Sears’ ultra-spiritual talk on Bitcoins :D

“My extensive training as an investment advisor involves seeing that bitcoin is in a lot of headlines now…and I translate that to mean that I should buy bitcoin” XD

https://www.youtube.com/watch?v=g-zIbVEjVpQ

#125 Dissident on 12.23.17 at 1:21 pm

…you know that Bitcoin is over when your goofy cousin in Eastern Europe asks you what else to invest in other than bitcoin.

“Sure cuz, I’ll send you a list of stuff.” (why tf is he asking *me*!?)

#126 FOUR FINGERS WATSON on 12.23.17 at 1:24 pm

Should we pay people just because they age? – Garth
…………………………..
People who lived and worked and paid taxes in Canada for 50 years deserve a softer ride. They built this country, we would not have much here if not for them. In old age when health and finances are winding down they should get an easier ride along the way. I have zero problems with oldsters getting some of their tax dollars back or paying zero health care premiums or having deferred property tax payments.

#127 Timberr on 12.23.17 at 1:31 pm

Perhaps crypto uptake would be greater here if Garth released his own cryptocurrency – I’m thinking “GCoin” or “Garthereum”

I would definitely buy a gold coin with Garth’s head on one side!

Who else is in!?!?

#128 SoggyShorts on 12.23.17 at 1:42 pm

#103 LivinLarge on 12.23.17 at 10:07 am
So, in reality the poorest of the 99%ers is contributing same as the highest 1%er is.
*********************
What utter rubbish.
If one person pays $100 and another pays $1, but it isn’t specified exactly which dollar is paying for which service, then “They are both contributing equally”?
Give your head a shake.

The reality is if one group pays more in total then they contribute more in total.

#129 Pop ? on 12.23.17 at 1:55 pm

Ha!!

In at $2000 ish .

Haven’t sold a penny .

#130 paul on 12.23.17 at 1:57 pm

121 FOUR FINGERS WATSON on 12.23.17 at 12:50 pm
I pay premiums for health care. None for OAS. – Garth
…………………………..

So do I. Token premiums. Majority of funding comes from general revenue. Should the sick and infirm pay higher premiums?

Should we pay people just because they age? – Garth
—————————————————————–
Hey Garth
Forty years ago I would have said defiantly not but I have been enlightened now.

#131 Overheardyou on 12.23.17 at 1:58 pm

#22 Zapstrap on 12.22.17 at 6:31 pm
Looks like the kid’s are getting eaten up by everything from every direction. Don’t stand much of a chance. Best to stay home with mom. Doesn’t bode well for us in general.

—–

Ever heard of survival of the fittest and life’s a journey? If you never step out of that door, you’ll never live life.

#132 Eyestrain on 12.23.17 at 2:01 pm

#95 Loonie Doctor on 12.23.17 at 8:13 am
… my reaction has simply been to work and spend less. For every action, there is a reaction.
*******
The Bitcoin miners didn’t fully comprehend what the reaction to their withdrawal of services would be. When this strike is over they won’t even be able to buy time on Garth’s Eniac. Assuming he can still get tubes for it.
You know, better than I, the answer to the question of where all the money gets siphoned off to. Why don’t the Docs take on the healthcare monster instead of the taxman? Seems like a win-win.

Any news on jane24’s condition?

#133 paul on 12.23.17 at 2:03 pm

I pay premiums for health care. None for OAS. – Garth.
——————————————————————–
So you should, anyone who takes chances like you Bikes,
sliding down driveways on the ice, and snow shoveling.
Man you are an accident waiting to happen! lol

#134 Pseudonymoustache on 12.23.17 at 2:06 pm

Selling bitcoin is pretty easy, actually.

Pick the right exchange! In Canada, IMO this is
quadrigacx.com

DO NOT use Kraken. Their site is a nightmare in so many ways.

There are lots of other options, but most are not Canadian, and add varying degrees of hassle factor.

Send bitcoin to the funding address.

Place a limit order suitable to fit current market price.

Liquidity and site stability has been excellent right through all the recent bumpiness. I would expect orders in the 10-100K $ value range to fill in minutes if not moments.

Oh, and the exchange runs 24/7. None of that business hour nonsense, let alone bank holidays.

There, you’ve sold your bitcoin, and have CDN$…but it’s still in the exchange vs in your bank account.

So, unless you wanted to keep it in the exchange to buy some litecoin or something, now withdraw via a wide array of methods including EFT and wire transfer, to your bank of choice.

Make sure you used your real name on the account, as it will need to match the bank info for the transfer.

There, done. Takes maybe 10 minutes the first time.

The delay until you have your money in your bank account will be up to 10 days depending on method… but that’s not cryptocurrency related, that’s how long a wire transfer takes… archaic, eh? I use the EFT option, and they’ve been coming through in 4 business days every time so far.

Seems pretty easy to me!

Don’t get me wrong, at this point any given cryptocurreny is *not* a safe investment, a realistic wealth store, or even a functional currency yet. Plus the exchange could be regulated out of existence or just take the money and run…

#135 akashic record on 12.23.17 at 2:25 pm

Dec 17 – $20k. Dec 23 – $15k. Some recovery. — Garth

At 15K over 1500% year-to-date. I am not complaining. Not that greedy.

#136 LivinLarge on 12.23.17 at 2:33 pm

Rooster, “I do think the clawback threshold should be cut in half, even though I would Iose. How many here would agree to that? 1% ?”…I have recently been pondering the same scenario. As I said in a previous comment, even at the current threshold I will never see a penny of OAS. The inherent problem I see with lowering the threshold is the greatly enhanced lifespan we are now contending with due to advancements in medical science coupled with the dramatic increases in geriatric care costs. If you’re going to be generally healthy into your 80s or even 90s then right this moment it will likely set you back around $72,000 per year of mostly after tax income per year to live in a senior’s apartment in a senior’s care facility in TO and not much less in the hinterland. So, a $71K gross income threshold isn’t really all that high considering that the generation currently over 70 really hasn’t benefited from the huge appreciation of RE in the last 20ish years.

Fearless Leader, I have to presume that you are just stirring the pot for shits and giggles when you keep saying that OAS is paying people just because they are old. You’re too experienced a planner to actually believe that. OAS is a needs governed entitlement program so if you’re over 65 and have the need then you get it. If the payment had no needs component then you’d be correct in saying it was strictly an age based suppliment but you and almost everyone else know that isn’t the case.

#137 down_boy on 12.23.17 at 2:38 pm

I’ve done very well in cryptos and I have exited my posiion in bitcoin. However I maintain a stake in several alts that will carry into the future, imho. These have functional advancements and practical applications currently expanding. There are many I have not studied, so I can’t speak on them. My current decentralized holdings include, but are not limited to, sys, dgb, dash, ltc, and only one speculative ico with a hardware component, ing.
Other than this ‘diverse and balanced basket’ I’ve moved on. Do your own research, and if you are a rebel, like me, get your own facts.

#138 jess on 12.23.17 at 3:55 pm

Jim Clifton, the Chairman and CEO of Gallup:

“The number of publicly listed companies trading on U.S. exchanges has been cut almost in half in the past 20 years — from about 7,300 to 3,700. Because firms can’t grow organically — that is, build more business from new and existing customers — they give up and pay high prices to acquire their competitors, thus drastically shrinking the number of U.S. public companies. This seriously contributes to the massive loss of U.S. middle-class jobs.”

#139 Karma on 12.23.17 at 5:04 pm

#53 Arto on 12.22.17 at 9:26 pm
“Comrade Garth, what is your opinion of the following?

“Nearly one in every four condo towers that have gone up in the past two years is wholly owned by non-residents, as they account for 23.7 per cent of new condo purchases”

http://www.richmond-news.com/news/new-richmond-condos-snapped-up-by-foreigners-1.23129447

Why would anyone get fussed over how many unbuilt condos in one suburb of our third city are owned by non-residents? – Garth”

Garth, are you aware that these are actually built and completed, and registered on land title? These units in question were marketed in 2013-2015. It’s likely gotten worse since then…

In other words, all those presales being advertised in Hong Kong and elsewhere aren’t even accounted for yet.

#140 jess on 12.23.17 at 6:01 pm

December 21, 2017

New Executive Order Implements Global Magnitsky Human Rights Accountability Act,
Provides for Treasury Sanctions Against Malign Actors Worldwide

Washington – Today, the Trump Administration launched a new sanctions regime targeting human rights abusers and corrupt actors around the world.

https://home.treasury.gov/news/press-releases/sm0243

#141 Paul on 12.24.17 at 10:52 am

#135 akashic record on 12.23.17 at 2:25 pm

Dec 17 – $20k. Dec 23 – $15k. Some recovery. — Garth

At 15K over 1500% year-to-date. I am not complaining. Not that greedy.
—————————————————————–
Good thing

#142 down_boy on 12.24.17 at 12:58 pm

Revised functional, practical, application watch list:
sys, factom, stratis, dgb, ltc, xvg, iota, nem, omg, steem, and iungo.
Have a great holiday season!