After what happened to Dogecoin, I thought
that's the bottom, and there won't be anything else that will surprise me.
A meme literally turned into a multi-billion dollar business just because of a few tweets
by the king of the internet. I am not sure what we should call Elon Musk at this point!
The king of memes or the king of the internet. Or the king of electric cars or the first
president of Mars or the emperor of mars as he calls himself.
I think the question is not – who is Mr.
Elon Musk, but what is Elon Musk?!
Don't get me wrong, I have always been a big fan of Elon Musk, but at the same it really
fascinates me that he can do whatever he wants and get away with it.
Remember how he tweeted that he would take Tesla private when Tesla stock reaches a certain
price point? Literally, people rush to buy Tesla stocks
after that tweet. But that's not what we are here to talk about.
Tesla might be interesting, but cryptos are much more interesting these days.
so popular that you can start your own cryptocurrencies just as a joke, and it will turn into a multi-billion
dollar business. Just like Dogecoin!
Is there an easier way to become a billionaire nowadays?
I don't think so! Even the dot com billionaires are jealous!
And if you thought that Dogecoin was an exception, then my dear friend, you are absolutely wrong!
Another coin that isn't that old also seems to have started as a joke, but now it worth
2.8 billion dollars. at one point, it even crossed a market cap of 4 billion dollars.
And what fascinates me the most about it is that – no one really knows why it is rising!
I have a question, guys – if I start a cryptocurrency as a joke and call it Proactive Coin or Proactive
Moon, would you buy it?! Can we pump it to the point where it could
worth billions, maybe trillions? In the last video about cryptos, I made a
case why everything that's happening with cryptos now is not sustainable.
We are playing
with the fire, and everything points out to a crush.
Before you write down a negative comment – you understand nothing about bitcoin. Bitcoin
is here to stay despite you! so shut your mouth!
Please give me a chance to explain myself! That's not what I meant. I agree with you.
Cryptocurrencies or blockchain, in general, are here to stay! No one is arguing against
that. But any asset or technology, despite how great
it might be, could be hyped and inflated. Whenever something like that happens, it's
destined to crash. Take the internet, for example. It's probably
the greatest innovation in human history. It made our lives so much better. You can't
even put a price tag on the internet. Whoever bet against the internet definitely lost,
but like any other technology, it took us some time to develop it to the point where
the entire world could use it and take advantage out of it.
And crypto's are no exception.
If you understand bitcoin or blockchain, you can clearly see all the great benefits of
this technology, but we need more time for us to exploit all the benefits out of it,
but the hype around it doesn't care. So here in this video, I want to share with
you a few more reasons or signs why all this seems like a bubble. The point isn't to criticize
crypto, but let's just take a look at the facts, at what's happening to have a better
idea of where all this is heading to and when is the correction or a crash is happening.
So give this video a thumbs up, and make sure to get your two free stocks from Webull. Just
use the link to the description. You are literally going to get 2 free stocks if you deposit
100 bucks. And now, let's get back to the video.
Remember the news when Tesla purchased 1.5
billion dollars worth of bitcoin. That took the world by storm. It made bitcoin mainstream.
If a company like Tesla is betting billions on crypto, that gave it a lot of legitimacy,
so a lot more investors jumped in and invested in bitcoins shooting bitcoin price through
However, in the last video, I said that Tesla would most likely sell its share
of bitcoins which is exactly what has been happening lately.
Tesla sold 10% of its bitcoin and made a profit of over 100 million dollars. The guy is genius.
Hate him as much as you want, but he is capitalizing on the asset that he helped to inflate.
Here is how it works. 1. Tesla Inc. buys some Bitcoin.
2. Tesla announces that Bitcoin is good now and that it bought some.
3. The price of Bitcoin goes up, because institutional adoption of Bitcoin is good for its price,
but also because,, anything that Musk buys goes up.
Tesla sells some Bitcoin, making a profit. 5. Musk tweets that the price of Bitcoin is
too high. 6. Bitcoin prices go down
7. Go to Step 1
Right now, Tesla is sitting on 2.5 billion dollars worth of bitcoin and over the year,
Tesla will keeping selling them bit by bit as the price keeps rising, which seems the
most likely scenario, but only time will tell.
However, the point is, it's not growing organically, but rather it's getting hyped.
When he changed his Twitter bio in late
January to #bitcoin, the price of Bitcoin rose nearly 20% in a matter of hours.
If a single tween by Elon Musk can increase the value of an asset by hundreds of billions
of dollars, that's when you know that it's not sustainable.
In fact, there are people who make money by just buying whatever musk tweets about and
selling it a few hours later. That's one way to make some extra cash on the side.
Another way to find out if an asset is inflated
is when prices go through the roof for no real reason.
The product or the service doesn't
provide any real value, but people still invest in it because they believe they can make quick
money out of it. No one is holding it forever. The goal is to get out before the pyramid
crashes. That's what happened with Dogecoin, and apparently
the same is now happening with SafeMoon. If a single tweet from the king of Memes can
increase bitcoins prices by 20 percent, what do you think he can do with Dogecoin?!
I will leave that for your to answer.
But SafeMoon is on another level because the strategy initially was to invite everyone
to join the token and disincentivize people to leave.
If you sell your SafeMoon coins, you will have to pay a 10 percent fee. And here is
the interesting part. 5% of this fee is then redistributed to all other SafeMoon owners,
essentially rewarding those who hang onto their tokens and disincentivize selling.
This is a brilliant marketing strategy to keep people hold their tokens when others
I am not really sure what's the point of this
taken! Only time will tell what's going to SafeMoon.
Another great marketing strategy is to issue so many coins where each coin would just cost
so little that people would think that if the price of that token would rise to just
10 cents, which seems reasonable, they will make millions such as 0.000004 cents which
is the current price of SafeMoon after it's astronomical rise
I think the developers who actually hold most
of the coins will slowly or are already selling their tokens and making millions of dollars.
I mean, SafeMoon is valued at 2.8 billion dollars at the time of this script, so if
they hold even 20 percent of the tokens, they can already earn a few hundred million dollars.
Do you know when was the last time something like this was happening? According to Mark
Cuban, who made billions during the dot com bubble – whatever is happening with crypto's
now reminds him EXACTLY what happened to the internet in 1999.
Mark Cuban founded broadcast.com and sold it to Yahoo for 5.7 billion dollars.
Yahoo was the internet back then (even my first ever email was @yahoo.com)
Yahoo was that guy who felt like he is missing out, so it purchased broadcast.com for 5.7
billion dollars, and Mark Cuban was the guy who saw the crash coming and sold all of his
stocks and got out right before the crash.
Guess what happened to broadcast.com? It went
bankrupt, taking down with it Yahoo. It was pretty difficult to spot the real legit
companies from those who would go bankrupt after the crash. Only a few companies like
amazon survived the crash because it secured funding right before the crash; however, it's
stock price fell from 107 dollars to just 7 dollars.
I am not saying whether you should invest
in cryptos now or not or whether you should buy Dogecoin or SafeMoon. Don't listen to
me, I am just a random guy on the internet just sharing his thoughts on the subject.
But here is what I will say – we can all learn from Yahoo's mistake.
And now it's time to go and get your two free stocks from Webull. Not crypto stocks, but
stocks from real companies. Just check the link in the description.
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