Bitcoin: Dust, that’s what I think these coins will be, Kaltbaum says


WE WERE DOWN 330, NOW WE’RE DOWN 270. DO YOU THINK THAT’S GOT SOMETHING — RATES ARE RISING, GARY, DO YOU THINK THIS DEBT BOMB THAT WE’RE TALKING ABOUT, HUGE DEFICITS, IS THAT A FACTOR IN TODAY’S MARKET?>>A LITTLE BIT. IT’S BEEN THE TRAJECTORY OF RATES GOING HIGHER, BUT ALSO THE FACT WE WERE UP 8400 DOW POINTS SINCE THE ELECTION WITHOUT ANY CORRECTION. SO YOU COMBINE THE TWO AND THAT’S WHY WE’RE IN THE SOUP RIGHT NOW. AND THE ONE THING I’M WATCHING FOR IS THE LOWS OF TUESDAY’S REVERSAL, BIG REVERSAL DAY. IF THEY GET TAKEN OUT, THIS IS GOING TO TURN INTO A 15-20% DROP, AND THEN WE’LL REEVALUATE IT FROM HERE. AND WATCHING THE MARKET TODAY AND AT THE CLOSE YESTERDAY DOES NOT GIVE ME ANY SOLACE RIGHT NOW. STUART: LIZZIE?>>BANK OF AMERICA IS WARNING THAT THE SENATE SPENDING DEAL WILL CONTRIBUTE TO HIGHER YIELDS ON THAT TEN-YEAR. WHY?>>OF COURSE.>>WHEN YOU UNLOAD A LOT OF GOVERNMENT PAPER INTO THE MARKETS, YOU’VE GOT TO RAISE YIELDS TO GET MORE BUYERS TO BUY THOSE GOVERNMENT BONDS. SO THE QUESTION IS AT WHAT POINT WHEN THAT TEN-YEAR HITS, IS IT 4%, 5%, WILL YOU NOT ONLY SEE A DRAMATIC DOWNTURN IN THE MARKET, BUT WILL IT WIPE OUT THE PRESIDENT’S TAX CUT STIMULUS?>>I THINK ANOTHER WAY OF SAYING IT IS EVERYTHING THAT SEEMS GOOD NEWS IS, IN FACT, TURNING OUT TO BE BAD NEWS. ONE OF THE REASONS THE MARKET SPIKED LOWER IS UNEMPLOYMENT CLAIMS CAME OUT AT A 45-YEAR LOW WHICH SIGNALS AN INCREDIBLY STRONG ECONOMY FINISH.>>I JUST ADD ONE THING? STUART: GARY, GO.>>I WANT TO ADD ONE HINGE. THE PRIVATE ECONOMY IS SIZZLING, IS DOING GREAT. THE PEOPLE OF THIS COUNTRY ARE WORKING THEIR TAILS OFF TO DO BETTER FUN THEMSELVES AND THEIR FAMILIES — FOR THEMSELVES AND THEIR FAMILIES. THE PROBLEM IS WASHINGTON D.C. THEY CAN’T STOP RAISING THE BAR ON HOW BIG GOVERNMENT IS AND HOW BIG GOVERNMENT INTRUDES INTO OUR LIVES EVERY DAY. AND THE FACT THAT I’M SEEING MITCH McCONNELL YELPING AND ALL HAPPY ABOUT THE FACT THAT THEY’RE RAISING IT AGAIN, I DON’T EVEN KNOW WHERE TO BEGIN. I’M LOOKING FOR ANYBODY ON THE RIGHT TO DO SOMETHING ABOUT IT, AND THEY REFUSE TO. STUART: LIZ PEEK, A SIZZLING PRIVATE SECTOR, A SIZZLING ECONOMY, WILL THAT PULL THE MARKET UP AT SOME POINT?>>WELL, AND WE’VE SEEN THAT. I MEAN, THAT’S WHAT THE MARKET’S BEEN RESPONDING TO. EARNINGS ARE, YOU KNOW, GANGBUSTERS. 20% INCREASE LIKELY IN THE FIRST QUARTER, BUT OBVIOUSLY THERE IS THIS OTHER SIDE WHICH IS THAT INTEREST RATES ARE GOING UP, AND THAT COMPETES WITH STOCKS. NOW BONDS ARE GOING TO START LOOKING MORE INTERESTING, ETC. LOOK, THERE’S — THE ONLY SILVER LINING MAY BE IF, INDEED, THE ECONOMY CONTINUES TO ACCELERATE, TAX RECEIPTS ARE GOING TO BE HIGHER THAN EXPECTED. AND, YOU KNOW, THAT WAS A NUMBER THAT A LOT OF US ARGUED ABOUT WHEN THE TAX BILL WENT THROUGH. THE DEMOCRATS, IRONICALLY, WERE TALKING ABOUT HOW THAT WAS TOO STIMULATIVE. BUT THE IS THE TAX — THE IS THE TAX RECEIPTS MAY BE BETTER THAN EXPECTED, SO MAYBE THE DEFICIT WON’T BE QUITE AS BIG AS EXPECTED. IT’S A MINOR SILVER LINING, BUT –>>BUT THEY WILL NOT KEEP UP WITH WHAT THEY’RE DOING IN WASHINGTON D.C.>>I AGREE.>>100% CERTAINTY TAX RECEIPTS ARE GOING UP, PLUS COMING OUT OF THE MARKET THAT’S BEEN SO STRONG, THE CAPITAL GAINS. BUT THEY JUST CAN’T KEEP UP WITH WHAT THEY ARE DOING THERE. THEY CONTINUE TO EXPAND THEIR POWER BASE, THEY’RE DRUNK WITH OUR TAXPAYER DOLLARS, AND AGAIN, THERE NEEDS TO BE SOME SORT OF MOVEMENT TO STOP THEM. AND I DON’T KNOW WHERE TO START. STUART: BEFORE YOU GO COMPLETELY APOPLECTIC, GARY — [LAUGHTER] I’M GOING TO — THANK YOU, VERY MUCH.>>SERENITY NOW. STUART: NO, NO, I’M GETTING BACK TO YOU. YOU’RE NOT OFF THE HOOK YET. TALK TO ME ABOUT GOLDMAN SACHS. THEY SAY CRYPTOCURRENCIES LIKE BITCOIN WILL EVENTUALLY BE UTTERLY WORTHLESS. NOW, I KNOW YOU AGREE WITH THAT, SO VENT SOME MORE, GARY.>>WELL, I JUST THINK THIS HAS BEEN A BIG BUBBLE, AND THE COIN PEOPLE WENT CRAZY. THERE’S OVER 1500 DIFFERENT COINS NOW AND COUNTING. AND I JUST ASK ONE SIMPLE QUESTION, WHAT IS THE ECONOMIC VALUE OF SOMEBODY MAKING UP A COIN, AND I STILL CAN’T COME UP WITH THE ANSWER. I THINK YOU’RE SEEING THE COMEUPPANCE. PRICES AS GOOD AS WHAT SOMEBODY’S WILLING TO PAY. MAYBE IT GOES BACK UP A LITTLE BIT, MAYBE EVEN A LOT, BUT I JUST THINK WHEN ALL IS SAID AND DONE D-U-S-T, THAT’S WHAT I THINK THESE COINS WILL BE. [LAUGHTER] STUART: GARY, THANK YOU VERY

17 thoughts on “Bitcoin: Dust, that’s what I think these coins will be, Kaltbaum says”

  1. There is ZERO inherent value in Bitcoin.  A FedCoin now, could have the faith and backing of the Federal Reserve, for what this worth.

  2. The tea party would have been the answer to the first part of this. Now we are in a free spend phase in government after the disastrous Obama administration. (in terms of spending)

  3. Bitcoin is terrible, way too volatile an asset, cannot spend anywhere. I spent tons on mining and investing, lost a ton, terrible. Everyone wants out, no one is coming in to buy, volume only spikes on massive drops now. Terrible, get out now, crashing to all time lows within days!

  4. Bitcoin will be around for generation to come. Gary will be dust in his Grave while Bitcoin is arround

  5. Hey guys,
    I've been trading btc for a while now and have wuite a bit doing so. I want to give back to the community so i'm hosting a raffle. send .01BTC to this address: 1439ytsyy3mpEpwhuDsVVPRbR3padKepvf and then email me the hash ID number and ill enter you into the drawing (my email is [email protected]). In one week ill be giving the pool to one random winner. Ive started the pool off by adding 1BTC to it myself. Feel free to email me with any questions.

  6. alt coins were created the same was the dollar is created today he might just be right. Everything will eventually find its intrinsic value

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