Monday, December 11, 2017

This will be delicious.

A Nocoiner is a person who has no Bitcoin. Nocoiners (usually Socialists, Lawyers or MBA Economists ) are people who missed their opportunity to buy Bitcoin at a low price because they thought it was a scam, and who is now bitter at having missed out. The nocoiner takes out his or her bitterness on Bitcoin Hodlers, by constantly claiming that Bitcoin will crash, is a scam, is a bubble, or other types of easily refuted FUD. Nocoiners have little to no computer skills or imagination; evenwhen they see the price of Bitcoin go up and its adoption spread they consider all Bitcoin users to be in a collective delusion, with only themselves as the ones who can see what is happening. This attitude comes from being steeped in the elitistpriest cultures found at Harvard, Yale and Columbia, where anyone who is not part of their clique is treated with suspicion by default. The worst nocoiners are tenured academics and goldbugs. Nocoiners believe that the world owes them everything they want because they are part of an elite; they are hysterical liars, brats, prostitutes and losers.

Source Urban Dictionary.

Some people have learned nothing from the recession. If this is what bitcoiners think about the rest of us... oh my goodness I just love this crap. For the record, while I never talked about it on the blog I also didn't understand why GOLD was such a fad for a while. So, I guess it never really happened.

GOLD was a purely emotional play. And kind of a pain in the ass currency. Not everyone takes GOLD. Walk up to a McDonalds and pay for a bigmac in GOLD. However, at least you can understand how GOLD moves. Basically after the September 11 attacks the dollar started to weaken. And kept doing so until about 2011. This is also the time where GOLD had it heyday. GOLD trades almost exactly inverse to the dollar chart.

GOLD  20 year chart. Dollar 20 year chart.

While GOLD is an actual currency, people chose currencies because they are easy to use. i.e. EVERYONE takes it. In some countries the only way you can stop people from using the dollar is by threatening to kill them.

At the time no one seemed to think they could lose money on GOLD. Yet is fell a full 50%. And that is a tried and true currency. I think bit coiners will be lucky to get out with a 50% profit. That would be considered a success.

It's easy for people to TAKE your money, let's see what happens when people want to get out. Something is not an asset if you can't sell it. Period. At some point those big whales are going to want to profit take. That's when the true carnage begins.

And honestly John McAfee is my economic counter indicator. He got taken out early in the recession. He doesn't always make the best choices lets say.


  1. Capital of Texas RefugeeMonday, December 11, 2017 6:11:00 PM

    GOLDBUGS FOR MOLDBUGS ... *chortle*

    Nah, really, I bought gold when it was in the 300s to 400s USD and sold it at a pretty decent profit.

    I also bought a LOT of tubes of 1964 Kennedy silver half-dollars, Mercury silver dimes, and so on, figuring that if people stopped trusting paper money as a repeat of various historical themes, I'd still be able to buy or barter for most of the stuff I actually need.

    But as for gold, the smallest physical coins I have in it are 1/20th troy ounce Pandas and 1945 Mexican two pesos. Kitco says right now that gold is at 1243.90 USD, which means that my smallest gold coin (the Panda) is worth 62.19 USD.

    Not exactly useful small change, is it?

  2. That's actually not too bad honestly. But I'd love to see you roll up to McDonalds and give the cashier a coin and expect roughly 60 bucks back. I wonder who would win. You or them and how long it would take you to convince them the coin was forth 62.19. No really... currently on the spot market 62.19. That is pre comedy..

    But yeah - who would have ever known that you could print a shirt ton of money and we wouldn't all be dying right now. The history books don't give you a concept that you can print money and people actually will not spend it and crazier yet - they might HOARD IT. I completely understand the emotion behind it's popularity though.

    FWIW - I've dabbled in stupid currency trading. I bought Dinars. Because I had much more faith in humanity and the need for things to be better. Turns out that is not a thing. I'm a half a million dinar-air. Hell at some points during the recession I wondered if it might be worth more than the dollar. I'm not even sure if the US currently lets you transfer it into dollars.

  3. Capital of Texas RefugeeMonday, December 11, 2017 8:56:00 PM

    Oh, yeah, BTW, so why would you own these 1/20th ounce gold coins that you can't do anything with at McDonald's?

    They can be sold at a decent profit to jewelers who need them for resizing 22k to 24k gold rings as well as for fixing other gold jewelry, which makes them good for higher end bartering as well. I've sold a few of these to friends who wanted to resize their wedding rings. (Arthritis and old age reasons, of course.)

    I have them "slabbed" in plastic holders because they are ridiculously easy to lose otherwise. Fractionals also tend to trade at a moderate premium, so I'm seeing around 75 EUR right now as a sale price at a few online coin dealers.

    This is actually a bit smaller than a dime: 1/20 troy ounce Chinese Panda.

    Hoarding cash doesn't always work though. My old Swiss franc notes for travel need to be replaced before 2019 or 2020 from the looks of it since the Swiss finally stopped screwing around with the 9th series of their bank notes. I don't keep much in this form relatively speaking, but it's still going to be a moderate pain to deal with.

    Then again, I got a great deal from some coin dealers in Toronto for a stack of barely-circulated Canadian 1 dollar bills that I'd had since 1974, so it just depends on which currency you hold.

    Iraqi dinars? If they're the old Saddam dinars, they're officially worthless since sometime in 2004. You might sell a few of the near-mint ones as curiosities and as bookmarks, and there's a market for those on eBay.

    You could have become a multi-millionaire for less with the old Turkish lira -- they stopped trading at 3.8 million TRL to the US Dollar. A friend turned me into a gazillonaire with a small stack of Zimbabwe 100 trillion dollar notes that are also pretty much worthless except as curiosities and bookmarks. :-)

    "Pounds, dollars ... millionaire!" ♫ :-)

  4. They are post Saddam, but almost equally worthless. This was early days in my investing horizon, so I wrote them off a long time ago. But it did teach me a lot about currencies without having to plow thousands of dollars into it like Bitcoin.