To The Moon

Bitcoin resumes it's slide after a short few days of recovery. The pattern seen this year suggest a new low will happen before the year ends.  Be careful and watch closely if this is happening because it may mean cryptocurrencies are heading into a deep slump.

$Strategy(MSTR)$  is confirmed not being included in the S&P100. The news just released announced the inclusion of Carvana and 2 others, but not MSTR. Article reproduced here:- A Carvana used-car "vending machine" in Indianapolis. Shares of Carvana zoomed more than 10% after news of its inclusion in the S&P 500 index. Carvana and two other companies will join the S&P 500 in about two weeks, S&P Dow Jones Indices said late Friday - dashing the hopes of those investors who expected bigger tech names or a crypto giant to get the honors this time around. Shares of Carvana Co. rallied 10% in after-hours trading Friday. Joining the online used-car retailer on the premier U.S. stock-market index SPX are building-materials maker CRH

The real fear is the mirage is starting to fade. Just like the Tulip craze in the 18th century, people may now be realising Crypto value exist only in the imagination of people who just want the next guy to be the last guy holding the bag when it crashes. The truth is, the promoters of cryptocurrencies are also the ones hoping and praying they will not be that last guy holding the bag.

Why should anyone be surprised? These are all fake organisations with no intrinsic value. They don't produce anything of any value. They don't offer any service of any worth. The only thing that drives any perceived value are the greed of people who push up the prices only hoping to offload them at the optimum prices to any sucker that is stupid enough to believe the hype that Crypto's will always appreciate in value.

MSTR bounce is not sustainable. It's a dead cat. The business model is false and the clock is ticking against it. First comes the dividend payment that has to be made. This will raise pressure on finding the cash to pay with. Next comes the matching of price of shares versus float and the value of it's sole asset, Bitcoin.  Remember, it's breakeven cost of Bitcoin is around $174,000. That is a just a sneeze from last night's $181k plus. Once Bitcoin falls below $174k, all hel breaks loose.

Strategy likely will not be in the S&P500. 

This shows they don't have cash to pay. 

Sell shares to raise dollars to pay dividends? How is this allowed? You are supposed to pay dividends from profits from trading or business operations. How is this not a ponzi?

A repeated posting but worth re-reading. A greater financial shenanigan is hard to find.  Ponzi in a nutshell is what Peter Schiff calls it. Some argue against this term but how do you explain issuing shares to pay dividends to old shareholders? 

It was a fool's run to begin with. A financial sleight of hands to make money out of nothing. Many old hands have been warning about this strategy (no pun intended) for a very long time. Everything is now being revealed as Cryptocurrency face their longest winter.