Last Friday, it was reported that money has been flowing into Bitcoin purchases for eight consecutive days, led by BlackRock’s IBIT ETF. This has brought the amount of Bitcoins owned by BlackRock to slightly more than 800,000 tulip bulbs—oops, Bitcoins – for a current value of ca. $64 billion dollars. This bubble is made out of thin air and is destined to follow the path of the Dutch tulip bubble. One of the rarest bulbs, the Semper Augustus bulb, was traded ca. 5,000 guilders at peak, and collapsed to less than 50 guilders, with a loss of over 99%. Other bulbs lost even more.
The Bitcoin bubble has less to it than the tulip bubble and is going to end up like it, or worse. At least tulip speculators had a bulb left in their hand. With Bitcoin, you will be left with nothing.
BlackRock is not the largest owner of Bitcoin. Microstrategy, a fund created by Michael Saylor, just reported a total of 815,000 Bitcoins owned, for a value of over $66 billion dollars as of this writing. Microstrategy is as doomed as BlackRock, of course. By the way, BlackRock is among the investors in Microstrategy.
