This email came from a reader.
John: A few months ago I sent you a note trying to convince you on the merits of cryptocurrencies. You stood fast on your negative opinion, while I was trying to share my enthusiasm over an investment whose recent returns had dwarfed anything one could make on Wall Street.
Fast forward nearly a year later, my investment has lost over 90 percent of its value. At least I will be able to take a partial loss on my tax return.
What disturbs me is that there are numerous investors who still see this loss as another buying opportunity, even as the Justice Department investigates last year’s rally as market manipulation. Please warn them again.
P.T.
Dear P.T.: I have been warning people — over and over. And now you’ve given them a warning from someone who has learned from his mistake.
Cryptocurrencies like bitcoin are a confidence game. They are worth nothing and backed by nothing. The only thing that gives them any value is the confidence of people who think they are worth something.
And since you wrote this note, bitcoin — or bitcon, as I like to call it — has fallen some more. As of Monday, it was down to less than $3,500 on its way to $0.
Sorry you lost your money. Glad to hear you can stick Uncle Sam and taxpayers with some of the loss.