Posted 12 months ago | by Ben Armstrong
Dave Portnoy to become Crypto Millionaire – According to Dave Portnoy
Dave Portnoy is going into the crypto space with guns blazing. After being given a short into to cryptos by the Winklevoss twins, the online personality has made cryptos a staple of his media regime.
To take this a step further, most people who own cryptos will probably become millionaires. The simple fact is that central banks are eviscerating the credibility of their product, which is fiat currency.
Dave Portnoy's worldview is US-centric, and backward looking. He is assuming that by making a given amount of fiat currency, his economic position will improve. Unfortunately for all of use, the worldview that Portnoy has is widespread, and likely to be completely wrong.
Spend it in Hell
Let's look at some basic economic facts. US Q2 2020 GDP fell by over 30%. In H1 2020, the US FED added around $3 trillion in debt to its balance sheet, and the US government hit monthly deficits that approached $1 trillion.
The economic picture that is emerging is one of total disaster, and also a situation that can't be helped by cheap money. We are talking about Venezuela or Zimbabwe as a best case scenario. Dave Portnoy will be a crypto millionaire, but he should probably look for a private island to make his show, and start hiring private security yesterday.
Any nation that doesn't have a strong social mandate to maintain law-and-order is screwed (check out the state of Manhattan), and this is just the beginning.
Of course, the utility of millions of spending units sort of becomes less interesting when you are trapped in your compound on a private island, and every professional criminal on the planet knows where you are – have fun in the panic room when the thugs show up with military-grade explosives.
This isn't Hyperbole
Maybe making 1 million dollars worth of trading profits isn't the most important thing right now. The near total breakdown in the social structure could be somewhat more important, or the fact that the entire global economy has been shut down may warrant more coverage.
The economy isn't some academic concept that can be fixed by people in drab clothing that use long words – it is the food you eat, the people you exist with, and everything that keeps you and anyone you care about alive.
To be sure, cryptos are an amazing asset class. Now we just need to figure out how to create something they can buy besides arms, ammo, and private security.