At the barbers today they were all talking about having bought bitcoin recently. When barbers start trading in bitcoin its probably the peak. In 1929 some people started getting out when the shoeshine boys started giving tips.
the reason for that saying is because by the time the lowest class of service workers is buying then there is nobody else to buy from them
Stocks and commodities spread through society that way, from the most well connected VCs down to the lower class when the price rise makes them feel like they have a chance to get rich after it is shown in their nonfinancial choices of entertainment
Bitcoin hasnt gone through society in this route
Existing hedge funds, VCs, University endowments and pension funds are legally incapable of buying cryptocurrency
They are all forming new LPs with new operating agreements to do so
There is no institutional leverage or credit in the cryptocurrency ecosystem
There are no derivatives to manage risk yet
The lower class will be selling to the institutions soon
Most of the institutional 'slow money' like endowments and pension funds will never touch cryptocurrencies, no matter how they are structured. They can't even take positions on FIAT currencies, or even bonds below AA rating. No way are they ever touching cryptos.
In times of Weimar prosperity, more people should curl up with a copy of Ben Graham's '29-crash postmortem "Intelligent Investor", IMHO. I can't help but suspect that these barbershop customers will someday regret not having simply parked half of their savings in AAA-rated government bonds, the other in consumer defensive dividend champion stocks, and rebalanced once a year. More power to them if they strike it rich, though.
Surely designers at a tech company (I guess) are knowledgeable of macro tech trends, so they've known cryptocurrencies for a while, but weren't interested in discussing it publicly?
