Over the last seven months, we have witnessed a cryptocurrency collapse that is so epic that it is truly difficult to put it into words. Last November, the total market capitalization for all cryptocurrencies crossed the three trillion dollar mark. This week, the total market capitalization for all cryptocurrencies actually dipped below one trillion dollars. In other words, approximately two-thirds of the value of all cryptocurrencies has already been wiped out. Some are calling this a “crash”, but the truth is that this is the sort of full-blown “collapse” that so many have been warning about for such a long time. A lot of crypto investors are now deeply in the red, and the outlook for the months ahead is very bleak.
Back on November 8th, Bitcoin was selling for more than $67,000. If you sold your Bitcoin at that moment, I salute you.
On Tuesday, the price of Bitcoin actually dropped below $21,000 for a short period of time…
Bitcoin briefly fell below $21,000 on Tuesday in Asia before bouncing back slightly, continuing its plunge as investors sold off risk assets.
The world’s largest cryptocurrency was down around 7% and trading at $22,531.22 at around 05:13 a.m. ET, according to Coindesk data. Bitcoin is trading at its lowest level since late 2020. Other digital coins including ether tumbled were also sharply lower.
As I write this article, the price of Bitcoin is hovering around $22,240.
At this point, Bitcoin has plunged more than two-thirds from the all-time high that was set last November.
Will it eventually bounce back?
The optimists certainly hope so, but the race for the exits only seems to be accelerating. In fact, cryptocurrencies have lost 200 billion dollars in value just since Saturday…
The market capitalization for cryptocurrencies slipped below $1 trillion on Monday for the first time since February 2021, data from CoinMarketCap showed. Around $200 billion has been wiped off the market since Saturday.
Overall, the total value of all cryptocurrencies has declined by more than 2.1 trillion dollars since November 8th.
Needless to say, some of the most prominent “crypto billionaires” in the world have been absolutely monkey-hammered.
For example, Changpeng Zhao was worth 95.8 billion dollars on paper on November 9th.
Today, his fortune is valued at just 10.2 billion dollars…
Changpeng Zhao, 44, the founder of Binance, has now seen his personal fortune – once the world’s 11th largest, fall 89 percent to $10.2 billion, and Sam Bankman-Fried, the 30-year-old CEO of crypto trading platform FTX, has seen his fortune decline 66 percent since it peaked at $26 billion, according to Bloomberg.
How would you feel if you lost 85.6 billion dollars?
But don’t feel too sorry for him. He can still walk away with 10 billion dollars if he sells everything now.
Coinbase founders Brian Armstrong and Fred Ehrsam have also seen their fortunes shrivel up at a very frightening pace…
And Coinbase Global founders Brian Armstrong, 39, and Fred Ehrsam, 34 – who were once worth a combined $18.1 billion have seen their fortunes shrink to just $2.1 billion each, as shares of their company – the largest U.S. crypto exchange – fell 79 percent.
On Tuesday, Coinbase announced that they will be laying off 18 percent of their workers.
If they truly believed that cryptos would soon bounce back, they would not be making such a move.
In a blog post detailing why the company has to lay off so many people, Armstrong explained that he believes that we are “entering a recession”…
After extending a hiring pause and rescinding some accepted job offers, Coinbase says it will lay off approximately 1,100 employees, or 18% of its global workforce, as the company braces for a potential recession and “crypto winter.”
“We appear to be entering a recession after a 10+ year economic boom,” Coinbase CEO Brian Armstrong wrote in a blog post on Tuesday. “A recession could lead to another crypto winter, and could last for an extended period. In past crypto winters, trading revenue (our largest revenue source) has declined significantly. While it’s hard to predict the economy or the markets, we always plan for the worst so we can operate the business through any environment.”
Sadly, he is quite right.
We are definitely entering a recession, and it is going to be extremely painful.
Of course there are others in the crypto community that are not willing to give up their optimism. For example, the Winklevoss twins were recently spotted belting out a stirring rendition of an old Journey classic even as the value of their holdings continued to fall…
A video of the Winklevoss twins singing Journey’s hit song ‘Don’t Stop Believin’ has gone viral as the siblings lose billions of dollars amid a cryptocurrency market crash and have been forced to lay off a whopping 10 percent of the staff at their startup.
The video, posted to Twitter by user Arch Nem on Thursday, shows Tyler singing the hit song off-key at the Wonder Bar in Asbury Park, New Jersey – where Bruce Springsteen launched his career – while Cameron played an electric guitar.
Of course if they actually believed that the future is bright for cryptos they would not be laying off a significant chunk of their employees.
If we could actually use cryptocurrencies to buy the things that we need on a daily basis, they would be far less volatile. But national governments around the globe will never allow that to happen.
Up to this point, the primary draw for most cryptos has been the fact that many investors were convinced that they would appreciate in price. A lot of people wanted to get rich quick, and there are some that actually did.
But ultimately cryptocurrencies do not possess any intrinsic value. I really like how Mike Adams recently made this point…
You can’t create real wealth by programming computers to burn electricity to solve complex mathematical problems that are presented as obstacles merely to “demonstrate work.” This does not grow food, create steel, provide labor, mine minerals, transport gas or perform any other useful real-world function. It merely burns electricity and allows a few people for a temporary period of time to pretend like they are billionaires because they have shared ledger spreadsheets containing larger and larger numbers.
If you were able to make a lot of money before the crypto market finally collapsed, I think that is great.
Unfortunately, a lot of investors are now deeply in the red.
As I have reminded my readers over and over again, you only make money in the financial markets if you get out in time.
Nothing in the financial world lasts forever.
The crypto apocalypse is here, and it certainly won’t be the last “apocalypse” that Wall Street experiences.
***It is finally here! Michael’s new book entitled “7 Year Apocalypse” is now available in paperback and for the Kindle on Amazon.***
Image by mohamed Hassan from Pixabay. Article cross-posted from End of the American Dream.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
