Crypto was all the rage over the past couple of years - so what happened? Was it all a scam?
One of the Cryptocurrency industry's largest exchanges (FTX) declares bankruptcy - with over a million creditors. How did this happen? KTRH money man Pat Shinn says Warren Buffet put it best. " ' It's only when the tide goes out that is when you learn who has been swimming naked!' And that is what has happened here with Crypto in the last week or so!" Shinn explains the industry this way..." They do not have cash flow. They do not have cash earnings. They do not give dividends. Crypto is worth what someone is willing to pay for it."
What consumer confidence the cryptocurrency industry had has been shaken. Shin has the details. "The third largest exchange is what filed for bankruptcy."
Some of America's most trusted finance gurus included Warren Buffet, Paul Kugman and Jamie Dimon, as far back as 2017 believed bitcoin was worthless. Shinn won't say if it is all a scam - but says without cash flow, earnings or dividends, crypto is only worth what someone will pay for it.
He won't predict the future for cryptocurrency - but advises you to only invest if you can afford to loose 100% of the value.
photo: Getty
CryptoCurrency on the way out?Photo: Getty Images