An attempt at an objective analysis of Bitcoin, which evokes strong emotions, even hysteria, from both its detractors and its proponents. From Simon Black at sovereignman.com:
There are famous stories that come out of the Great Depression in which very astute financiers sold all of their stocks just before the big crash of 1929.
Joseph Kennedy famously dumped his portfolio after receiving stock tips from a shoeshine boy. And Bernard Baruch, one of the wealthiest financiers on Wall Street, said after the crash,
“Taxi drivers told you what to buy. The shoeshine boy could give you a summary of the day’s financial news as he worked with rag and polish. An old beggar who regularly patrolled the street in front of my office now gave me [stock] tips. . .”
Now, these comments make it seem like taxi drivers and shoeshine boys don’t have financial sense. And that’s wrong.
Someone’s profession and their level of financial sophistication don’t necessarily go hand in hand; there are plenty of astute janitors, and plenty of idiot fund managers.
But I did think about Baruch’s remarks recently when an Uber driver started talking to me about cryptocurrency.
Again, his opinions are just as valid as anyone else’s. But what I found remarkable is that the only thing he knew about his portfolio was how much he’s ‘up’.