Australian financial guru Barefoot Investor Scott Pape has fired his critics after he was labeled “humiliating” for his cryptocurrency tips.
The risk-averse financial advisor has refused to push new digital cryptocurrencies to his followers despite experiencing astronomical surges in recent years.
Now a reader of his newsletter has called him out about it – and in return he got a hefty reprimand.
“You are costing your followers HUGE profits by burying your head in the sand with crypto,” wrote an investor known as Chris in a letter to Mr Pape’s regular email.
“Let’s put aside the 1000+ percent gains made on various currencies and focus on income. Who doesn’t want a 17 percent return from betting coins?
Australian financial guru Barefoot Investor Scott Pape (pictured) has fired his critics after being labeled ’embarrassed’ for his tips on cryptocurrency
The risk-averse financial advisor has refused to push new digital cryptocurrencies (pictured) to his followers, despite experiencing astronomical surges in recent years
‘Crypto and DeFi (Decentralized Finance) are the future. The Barefoot Investor is the past,” the reader wrote. ‘Waking. You’re embarrassing yourself.’
Cryptocurrencies are virtual currencies that only exist in cyberspace, but can be “mined” by computer banks unraveling a complex algorithm.
The main cryptocurrency, Bitcoin, doubled in value between Christmas last year and October, before falling about 20 percent since then.
They launched in 2012 at a value of US$4.19 each and were picked up speculatively by tech fans around the world.
The main cryptocurrency, Bitcoin, doubled in value between Christmas last year and October, before falling about 20 percent since then
Bitcoins are now worth around US$51,000 each, up 100,000 percent, bringing a fortune to the early adopters, many of whom are now multi-millionaires
They are now worth about $51,000 each, an increase of 100,000 percent, lending a fortune to the early adopters, many of whom are now multimillionaires.
There are now several other similar cryptocurrencies, and many are also registering massive gains in record time.
But Mr. Pape is still concerned about investing in the virtual currency.
Unlike real currencies, cryptocurrencies are not backed by national banks or governments for a variety of reasons and are subject to huge price swings.
Mr Pape snapped back to his critic that he was well aware of the financial marker being disrupted by the digital markets.
But he said there’s “a lot of stupid, greedy things going on.” And a LOT of stupid things are happening right now.”
Scott Pape is still concerned about virtual currency investments as they are not backed by national banks or governments and are subject to huge price swings
He used the example of a cryptocurrency that shares its name with the new Covid variant, Omicron, which skyrocketed ‘1100 percent. [to $700] last weekend’.
‘Why?’ asked Mr. Pape. ‘Because it has the same name. Seriously. It starts and ends there.
“Then Monday came the hangover, and the currency dropped 75 percent overnight.”
He insisted that the fact that cryptocurrency had high returns was an indication of the dangers.
Scott Pape used the example of a cryptocurrency that shares its name with the new Covid variant, Omicron, which ‘shooted 1100 percent’ [to $700] last weekend’
“Despite all the amazing technological advances that are happening right now, nothing changes the basic tenet of risk and reward,” he said.
“In a zero-interest world, any investment that offers a 17-percent return is a warning that you’re at increased risk of losing your money.”
He added: ‘I pray for you Chris.’
In the same newsletter, Mr. Pape also slammed another investor who withdrew her super and took out a loan to lend $85,000 to her boyfriend, who now cannot afford to pay her back.
Scott Pape insisted that the fact that cryptocurrency had high returns was an indication of the dangers associated with it
“I’m not going to judge you… because I’m sure you’re pretty hard on yourself already,” he wrote.
“Okay, I can’t help but think it’s gross that you took money from your super, Linda. That was before your retirement!’
He advised her to tell her boyfriend to repay the loyalty she showed him when she lent him the money by taking him on extra jobs to pay her back.
Pape added: “You helped him out of love because you knew he would do the same for you. Well, now it’s time for him to prove it.’