People Are Going Batshit for Crypto

People are going batshit for crypto. When the Long Island Iced Tea Company changed its name to Long Blockchain its stock jumped by 50 percent. Similarly Hooters’s stock jumped by 50 percent when it announced its blockchain rewards program and Kodak, which I didn’t realize was even still around, enjoyed a stock increase of 60 percent when it announced its blockchain-based currency. It seems like the mere whisper of the word blockchain is enough to get investors excited.

Let us return to Long Blockchain though. When the company announced its name change it justified it by claiming that it was going to buy cryptocurrency mining hardware. After baiting investors Long Blockchain announced that while it was still planning to invest in cryptocurrency mining hardware it didn’t have a definite timeline:

But today Long Blockchain announced it was scrapping the stock offering. The company says that it’s still planning to buy bitcoin-mining hardware. However, Long Blockchain says that it “can make no assurances that it will be able to finance the purchase of the mining equipment.”

Every time Bitcoin’s price increases detractors claim that it’s a bubble that will soon burst and leave everybody who invested penniless. Little did they know that Bitcoin itself wasn’t the real bubble but the technology it’s based on, blockchains, was. And yes, when the mere whisper of adopting a technology causes your stock to significantly jump in value, you’re operating in a bubble.