BEWARE… Bitcoin Fever is Starting A Dangerous New Trend

Bitcoin fever has gripped the world.

Everyone has heard by now how bitcoin has risen by over 1,000% in one year.

People are now scrambling to buy bitcoin at whatever cost.

And this Bitcoin fever has now started a dangerous new trend which you should know about…

Take a look at this chart of RIOT:

Until a few months ago RIOT was a small biotech company that nobody cared about.

Then suddenly in November they changed their name to “Riot Blockchain” and announced that they are going to invest heavily in cryptocurrencies and Bitcoin blockchain companies.

Notice what happened to RIOT’s share price immediately afterwards.  In less than a week it doubled in price.  And then it skyrocketed by 300%!

So let’s get this straight:

A failing company with a garbage stock that NOBODY was talking about- suddenly becomes a buying sensation all because it says it is investing in the bitcoin market?

And now we are hearing about another failing company copying this same trend – Kodak!

Yes, remember the good old days when we used to print our photos with Kodak film?

Well Kodak announced this week that it is going to “mint” its own cryptocurrency – the Kodakcoin!  

Take a look at its share price now:

You can see that the price of KODK jumped and quadrupled in value!

I know that some bitcoin enthusiasts will say that this is just the beginning – and that bitcoin will make rich whatever company that wants to invest in it.

But I would disagree.

I think most intelligent and informed investors – including many smart bitcoin investors – know the REAL reason why these companies are suddenly jumping on the bitcoin bandwagon!

Ask yourself this question:

Why would a failing company that has lost its relevance in the world – with a stock that is falling fast into nothingness – suddenly announce that it is investing in bitcoin or creating its own cryptocurrency?

In my opinion, it is very likely a brilliant and devious marketing strategy to get uninformed investors to buy their worthless stock! 

It is a strategy to exploit human ignorance, emotions and mass mania.

Don’t get me wrong here.  I am NOT saying that all cryptocurrencies are bad.  

On the contrary, I think that Bitcoin and maybe a few other cryptocurrencies like Ethereum probably have long term potential and staying power.

But what exactly is the long term potential and worth of “Kodakcoin” and RIOT Blockchain?

Let’s not forget that 18 years ago at the peak of the dot-com bubble – many worthless companies were seeing their share prices skyrocket simply because they said they were now going “online” on the internet.

Most of these companies went bankrupt…

So let us BEWARE of this new trend!

I think we will see more and more unknown and failing companies trying to get publicity (and money) for themselves by declaring their own crypto coins.

Will they succeed?  

Only time will tell.  I personally will bet against it.

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