“We Got Ourselves A Full-Blown Mania…”

I often get asked by younger traders what it was like to trade in the DotCom bubble. When I tell them stories about the madness that prevailed at the time, they shake their heads in disbelief about how stupid my generation could have been. They have difficulty understanding the mania that gripped investors. To them, it seems so obvious that stocks were preposterously over-valued, but let me assure you, fighting that tidal wave of buying was more difficult than Lindsay Lohan staying sober for her probation meetings.
Well, my millennial readers, I will let you in on a little secret. You guys are in the midst of blowing your very own bubble. Don’t bother sending me emails or tweets about how I don’t know what I am talking about. How I am an out-of-touch-old-school-finance guy who doesn’t understand the new revolutionary technology that is about to take over the world. I understand all too well how committed your generation is to this blockchain technology. I get it. It’s game changing. It’s still cheap when you compare it to other assets. It will forever change the world of finance. In fact, it will change almost everything. Distributed networks have the ability to cure world hunger, find all the socks that disappear in the dryer and let you eat whatever you want without getting fat. It’s just all-around fan-freaking-tastic.
In fact, not only is it game-changing, but just yesterday a fellow in a t-shirt and jacket (ala 1986 Miami Vice), hopped on Bloomberg TV and told me how I need to consider using a ‘different mental model’ when valuing Bitcoin. Spencer Bogart, head of research at BlockChain Capital, actually said the following with a straight face:

This post was published at Zero Hedge on Dec 19, 2017.