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One man’s opinion: Cryptocurrency’s Kryptonite

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One man’s opinion: Cryptocurrency’s Kryptonite

Here’s the story of the high-flying funny money that flew too close to the sun…and then…

There are times in life when a moment crystallizes in your mind, and increasingly, at least for me, when you can anticipate when that latest ‘hot topic,’ is about to jump the shark.

My father is an astute businessman and longtime savvy investor in many things, however, he is not the guy up to speed on all things new and different. A few months back, he pulled me aside to apparently share something of great value in confidence. In a near whisper, he offered, “They are going to stop using paper currency sometime soon, probably time to start moving some dollars into that crypto-currency stuff.”

At that precise moment, I knew that if dad was even aware that cryptocurrency existed, that investment bubble was about to burst. Thanks for the tip, dad. Using reverse logic, you were on the money. I am admittedly not a savvy investor. I am a steady saver, and my investing leans hard to the more conservative side of the ledger in money market CDs, municipal bonds, blue chip stocks, and even real estate. The risks of electronic cryptocurrency have largely kept me away, but I can also admit that I don’t entirely get the concept.

An endless string of coding, mostly zeroes and ones, moving towards infinity. In supposedly limited supply, while still being mined and manufactured daily in data centers across the globe. International regulation is all but non-existent, the market is new enough that the federal government is still figuring it out, and extensive passcodes, which can get lost, create intricate access to even your own crypto holdings. Yet, this is a strong enough ‘free market’ that the Trump sons have created a new crypto that has already increased the family fortunes by a few billion.

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Cryptocurrency miners run computers in large warehouses on racks at top speed 24/7, which consume huge amounts of electricity as well as water to keep those computers running cool. Those collective data farms are currently comparable to the domestic energy consumption of Norway. A single data center has roughly the same energy footprint as 250,000 American homes.

That electricity can’t all come from sustainable sources, meaning that the industry is also a net polluter. And whether your cryptocurrency of choice is Bitcoin, Luna, Ethereum, or some lesser-known e-currency, they all share one thing in common at present. After hitting peak prices in 2021, their values are all down substantially. Several smaller Crypto currencies have ceased operations, leaving their investors holding the bag. In fact, the only part of the e-currency industry operating solidly in the black are the e-currency exchanges. They each make a small commission whether prices are going up or down.

The Federal Trade Commissioner (FTC) also reports that more than 46,000 Americans have been stung by Crypto scams since January 2021, as many still believe the myths of rapid wealth, much more than current market dynamics. And of course, crypto boosters will tell you that all markets are cyclic and that their pricing and value will recover. For those crypto cheerleaders, I have five words for you to ponder: electro-magnetic pulse and black-outs.

Domestically, the most recent green energy bill signed into law was during the Biden Administration, and intended to expedite huge market shifts (while now being dismantled by the Trump Administration) pushed aggressively towards more electric vehicles and the use of more sustainable energy sources. Those are worthy goals, but as we are seeing globally as well as domestically with brown-outs and black-outs during this summer of record heat, those ‘green’ energy sources typically cannot provide high-demand baseload, in the same fashion as coal, natural gas or nuclear generated electrical power. Our grid is also not designed for the increasing pull of E-vehicles in every home garage, and unless we commit soon to a much larger new nuclear energy reactor fleet, we will not be able to meet base power production demand in many urban areas during the summertime. And our home state of Georgia has also become ‘project site central’ for new data centers.

Yes, the more reliable cryptocurrencies and data mining farms do have onsite backup generator, but even fail-safes can fail. Who knew that the Kryptonite for high-flying cryptocurrencies might be a combination of green energy policy and sporadic and unpredictable power outages? Innovation can still save or turn any industry apparently heading for a quick exit or downturn. And again, I am no expert, but perhaps add an endless string of XXX’s to all of those zeroes and ones… those certainly seemed to have worked out quite well for the porn industry.

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Jim Rickards Asked Robert Kiyosaki to Read One Manuscript, Then His View of Global Finance Changed

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Jim Rickards Asked Robert Kiyosaki to Read One Manuscript, Then His View of Global Finance Changed

Key Takeaways

Why Did One Manuscript Change Robert Kiyosaki’s View?

Robert Kiyosaki, the author of the best-selling personal finance book Rich Dad Poor Dad, said an advance manuscript of “The Entropy Trap” shared by Jim Rickards prompted him to rethink how he views global finance. Rickards is an economist, lawyer, and financial commentator known for writing about currencies, debt, and systemic market risk. Kiyosaki said the early reading changed his perspective on where the financial system may be headed.

The reaction was framed around a warning about financial change. The book, written by Mickey M. Maini, “blew my mind and opened my eyes to what & why global financial change is coming,” Kiyosaki described. His comments focused on what he described as a shift in the rules behind wealth, assets, and trust.

The central claim is that wealth could move away from people relying on traditional financial assumptions. Kiyosaki asserted:

“The informed will be tomorrow’s ULTRA RICH. Todays uniformed operating by the old rules of money… will become the new poor.”

The Warning Behind the Claim

The warning centers on assets that depend on trust, including U.S. bonds, exchange-traded funds (ETFs), and mutual funds. Kiyosaki framed those instruments as vulnerable under the financial shift he says is coming, placing commonly held investment products at the center of the risk.

That claim is severe, but he presented it as a warning rather than a proven outcome. He also pointed to large bondholders, including Japan, saying they have already started dumping U.S. bonds. He did not provide supporting data in the statement.

The acclaimed author shared:

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“Message from book… ‘All assets that require trust, assets that most people have… such as U.S. bonds, ETFs, mutual funds will be flushed down toilets, all over the world.’”

The broader conflict is whether traditional financial assets remain reliable under the conditions Kiyosaki described. His framing divides investors between those preparing for a changed financial system and those still operating under assumptions he says may no longer hold.

What Still Needs to Be Proven

A planned August study session could clarify the warning Kiyosaki described. He said his study team would examine the message and that Rickards may join, though the evidence behind the claims has not yet been laid out.

For now, the warning rests on Kiyosaki’s account of a manuscript that changed his view. He urged readers to prepare, writing:

“I want you to be one of the world’s new rich.”

What remains unknown is whether market data, policy moves, or investor behavior will confirm the risk he described.

His recent commentary has focused on what he describes as fragility in the global monetary system, particularly around the U.S. dollar. He has pointed to rising debt, central bank policies, and inflation as risks that could trigger a sharp market downturn.

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Alongside those concerns, he has repeatedly highlighted bitcoin, gold, and silver as alternative stores of value. In his view, those assets may help reduce exposure to traditional financial instruments during periods of currency weakness and market turbulence.

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Strategy Is No Longer Just Going to “Inoculate the Market,” Selling Crypto May Be Much More Common. Here’s What That Could Mean for the Stock | The Motley Fool

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Strategy Is No Longer Just Going to “Inoculate the Market,” Selling Crypto May Be Much More Common. Here’s What That Could Mean for the Stock | The Motley Fool

When Strategy (MSTR 0.69%) sold a modest amount of Bitcoin earlier this year, it was a noteworthy development given that the company’s business has centered around buying up as much of the cryptocurrency as it can, and vowing to never sell. And it often boasts of being the largest corporate holder of the digital currency.

The company brushed off the sale of 32 Bitcoins, with management saying it simply wanted to “inoculate the market.” Well, now it appears that Strategy is doing much more than just that, and there could be more significant cryptocurrency sales in the future.

Image source: Getty Images.

Strategy unveils a Bitcoin monetization program

On June 29, Strategy released a framework going forward that it says will “enhance liquidity, preserve long-term Bitcoin exposure, and support long-term value creation for shareholders.” Among the notable components is its Bitcoin monetization program.

Within that program, the company says it may sell some of its cryptocurrency holdings for multiple reasons, including to fund a USD reserve, fund dividends or interest expense, or to fund repurchases of digital credit securities or common stock.

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While the company says it remains committed to Bitcoin for the long term and it’s the company’s “primary treasury reserve asset,” it’s a significant change of course for Strategy, which was previously heavily against ever selling the digital asset.

Strategy Stock Quote

Today’s Change

(-0.69%) $-0.69

Current Price

$100.08

The stock is as risky and volatile as ever

Whether or not Strategy buys or sells Bitcoin doesn’t change the fact that this is a highly risky and speculative stock to own. While crypto fans may be disappointed in the company’s change in strategy, selling Bitcoin will likely not be enough to make the business any better or worse as an investment.

In just the past 12 months, the stock has plummeted a whopping 75% as volatility in digital assets has drastically weighed on its earnings, with the company incurring $12.8 billion in losses over the trailing 12 months, on revenue of $490 million.

That’s not likely to change significantly, even if Strategy offloads some of its crypto holdings, because with such a large exposure to Bitcoin, how the cryptocurrency performs will inevitably impact the company’s bottom line in a big way. This year, the leading cryptocurrency is down 28% as investor excitement around it has largely cooled off, which has proven disastrous for Strategy’s stock as well. And at this stage, there’s little reason to anticipate a recovery anytime soon.

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An Easy-to-Miss Radio Traffic Jam Is Behind Many Home WiFi Slowdowns

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An Easy-to-Miss Radio Traffic Jam Is Behind Many Home WiFi Slowdowns

Key Takeaways

Your WiFi can feel rock-solid at midnight and oddly sluggish by breakfast, even when you have not touched a single setting. The culprit is often outside your walls: a crowded slice of public radio spectrum where your router has to negotiate space with every nearby network, plus a grab bag of household gadgets that leak interference. Add peak-hours demand and the signal-blocking quirks of building materials and weather, and “slow internet” starts to look less like a billing issue and more like an invisible traffic problem you are forced to share.

When WiFi slows down without warning

One day your home WiFi feels snappy, the next it drags, even though your router hasn’t moved and your internet plan hasn’t changed. That swing is real, and it’s usually not your imagination or a “bad day” from your ISP. WiFi lives on shared airwaves, and those airwaves get crowded, noisy, and sometimes just plain finicky.

Think of your connection as a conversation in a busy room. Your laptop and router may be talking just fine, but the room itself can fill up fast with other chatter. What looks like a mystery slowdown is often the result of invisible competition and interference that changes hour by hour.

The battle of competing networks

Most homes still rely heavily on the 2.4 GHz and 5 GHz WiFi bands, which are unlicensed spectrum in the US. That “free for everyone” reality is convenient, but it also means your network shares space with your neighbors, their smart TVs, their work laptops, and every nearby router doing the same thing.

Congestion has a rhythm. During common work-from-home and school-from-home windows, especially 8-10 AM, and again in the evening 6-10 PM, more devices are streaming, video calling, syncing, and downloading updates. Even if you pay for fast broadband, your WiFi link can become the bottleneck when the local radio environment gets packed.

Interference inside your home

Your own house can sabotage you. A microwave is the classic culprit because it can leak noise near 2.4 GHz, exactly where many WiFi networks still operate. Older cordless phones, some baby monitors, and even dense clusters of Bluetooth gadgets can add more clutter, especially in smaller apartments where everything sits close together.

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Then there’s physics. Concrete, metal, and even water (think aquariums or thick pipes in walls) absorb and scatter radio signals. A router shoved behind a TV, tucked into a cabinet, or stuck in a far corner forces your devices to “hear” through more obstacles, lowering speeds and making dropouts more likely.

Weather, channels, and what you can do tonight

Environmental changes can matter too. Higher humidity and rain can slightly increase signal loss, and shifting temperatures can change how radio waves propagate around a neighborhood. You might never notice on its own, but paired with congestion it can tip a marginal connection into a frustrating one.

The 2.4 GHz band is also channel-limited. In the US there are 11 channels, but only 1, 6, and 11 don’t overlap. Many routers default to “auto channel,” so nearby networks can hop around trying to escape interference, sometimes creating instability. Practical fixes: prefer 5 GHz (or 6 GHz if you have WiFi 6E/7 gear), place the router centrally and higher up, and use a WiFi analyzer app to pick a less crowded channel instead of leaving it on auto.

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