A visual representation of digital currencies.
Yuriko Nakao | Getty Images
If it’s not already blatantly obvious, and has been for a few years now, it looks like we’ve entertained the Crazy Town section of Crypto-Land.
We jumped the shark, crossed the Rubicon. We are on our skis and out of our minds.
A few days ago, self-styled investment legend David Portnoy, held an “emergency press conference” to reveal his latest cryptocurrency purchase.
After teasing his followers with a variety of choices, Portnoy revealed that he purchased $ 40,000 worth of “safemoon,” a “currency” for which he had no explanation and no idea whether he was was a Ponzi scheme or a legitimate token. And he bought some, if my math is correct, about five billion of them.
At the time of the announcement, safemoon was priced at $ 0.00000817. This morning it was quoted at $ 0.00000679.
That’s five zeros before you get to a real number.
Late Wednesday, Twitter was in full swing with the minting of another token called “CluCoin”.
I have no idea what it is, who is behind it or what it represents.
Within hours of being punched, thrown, or forced upon an unsuspecting audience, not only was it “trending,” but its market value reached $ 125 million within hours. It’s probably worth more now.
It is billed as a “hyper deflationary token with a smart staking system”. Are you kidding me? I’ve been covering currency and markets for 37 years next month, and have absolutely no idea what that means.
Meanwhile, mercurial Mr. Musk bought bitcoin through Tesla, accepted it as payment for a vehicle, and completely reversed his take on bitcoin within a month, leading the child to the shows cryptocurrency to halve its price from $ 65,000 to $ 30,000 yesterday and back to $ 40,000 today.
There was also his barking about dogecoin, which was hitting 74 cents the afternoon before it appeared on “Saturday Night Live” and dropping as low as nearly 30 cents on Wednesday.
I pity the poor people who listened to these crypto-criers, whose midnight calls probably cost them countless dollars and common sense.
Imagine if the dollar were as volatile as cryptocurrencies.
We would shop hourly to avoid paying too much or not enough for the goods or services we were looking to purchase.
Like any other financial or speculative asset bubble, be it tulips, pet rocks, or cryptocurrencies, this is already hurting the investing public and the craze probably isn’t even yet. finished.
Dear reader, come to your senses. If you haven’t arrived early, you are arriving late. You are the bag holder.
These fictitious money flute players accompany you to the water’s edge. They will stop before they fall into the water.
You can not.
If you have any profits, take them and go home. If you have losses, reduce them.
If you haven’t gambled yet, stay home, stay safe, and be healthy.
—Ron Insana is a CNBC Contributor and Senior Advisor at Schroders.
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