As Bitcoin keeps falling (now below $8,000) Tom Lee is finally forced to answer for being so massively wrong about Bitcoin:
Looks like I was right again. When I say something is going to be a certain way, that is usually how it plays out. As far back as February, I knew Tom Lee was clueless and that there was no way Bitcoin was going to $15,000 again, let alone $25,000 or any of these other absurd targets. If Bitcoin ends the year below $10,000, his credibility will have been shot and CNBC and other financial networks should stop having him on as often or at all, but as mentioned here before, the financial media is not in the business of making accurate forecasts or providing good investment advice, but filling the gaps in between the ads. So if absurd Bitcoin predictions are what generate ad sales, then that is what we will see.
But it’s not just the financial media that succumbed and fomented the hype…so to did people that I would otherwise consider to be really smart, got swept away. There is someone on Twitter, whose name I won’t disclose, who said the dollar was a bubble, not Bitcoin, and that it would go to $1 million/coin. His IQ is off the charts, but this call was off the the charts stupid. Thankfully one does not need such a high IQ to identify nonsense in such plain sight. The dollar cannot be a bubble, because nearly all wealth is denominated in dollars (the Forbes 400 list is in dollars, not euros, pounds, yen, etc.). Although the US dollar may be ‘high’ relative to another currency as measured by exchange rates, that is not the same as the entire currency itself losing its legitimacy as a measure of wealth.
Others say the banking system is broken. It’s like some people enjoy making shit up. When you go to the food store, notice how everything seems to work. You hand the cashier your money or use your card, and he or she gives you change. How often does this fail? Almost never. Or you go to the bank, put your card in, push some buttons, and money comes out. Again, these are not symptoms of a financial system that is broken or in distress (or at least not to me). One could argue 2008 was a close call, but one must put it the proper context: in the past 100 years, there have only been two banking crisis (2008 and 1929), so crisis is very rare historically speaking. But even in 2008, it is a myth that the banks were going to run out of money. The debt was due to mark-to-market losses in the real estate and certain commercial sectors, not the consumer banking side. The consumer sectors were solvent. Bank of America’s mortgage losses were isolated from its banking operations, which worked fine. It’s not like there was a cash shortage and the ATMs would run out of money.