The cryptocurrency Bitcoin recently experienced a dramatic fall in value. This also contributed to a precipitous stock market plunge for a day. This would be in line with prediction made by super angel investor Shervin Pishevar in a recent Tweetstorm.
Mr. Pishevar got a lot of people talking and a lot of heads scratching when he suddenly and uncharacteristically unleashed a 21-hour social media rant that rolled out in the form of dozens of Tweets.
The topics were many. Shervin Pishevar did not hold back. He offered opinions on everything from the near-future fate of the U.S. economy to the current state of Silicon Valley. Not only was Bitcoin on his mind, but Shervin Pishevar doled out views on everything from inflation to what he calls the “overuse of bond issues” on behalf of the central banks.
Shervin pishevar said that he believes Bitcoin is wildly overvalued and is overdue for a crash. Even so, he is not 100% pessimistic about the most recognized cryptocurrency. He think this “stateless” financial instrument will stabilize, albeit at much more modest value of perhaps $2000 to $5000. As of the writing of this article, Bitcoin was sitting at $4,400.
Shervin Pishevar also Tweeted warnings about the stock market. It too, he said, is in for a significant correction in 2018. He said volatility produced by uncertainty in bond values — and the propensity of central banks to overuse them as a stabilizing force — does not bode will for continued stock market growth.
Shervin Pishevar also suggested that the days of Silicon Valley as the world’s dominant tech corridor may also be over. He sees no reason why any other area in the world cannot compete with what happens in Silicon Valley which is, after all, just an “idea” rather than an actual entity, he said.
Mr. Pishevar Tweeted some curious thoughts in inflation — or the lack of it in the U.S. economy in recent years. He said U.S. trade policy has effectively “exported” inflation to other nations. Does that mean Americans should never worry about inflation again? Certainly, this remains an unknown.