A buddy of mine who IS a financial wizard just sent me this:
Bitcoin explained in layman’s term
A lot of stray monkeys lived near a village.
One day a merchant came to the village to buy these monkeys!
He announced that he will buy the monkeys @ $100 each.
The villagers thought that this man is mad.
They thought how can somebody buy stray monkeys at $100 each?
Still, some people caught some monkeys and gave them to this merchant and he gave $100 for each monkey.
The news spread like wildfire and people caught more monkeys and sold them to the merchant.
After a few days, the merchant announced that he will now buy monkeys @ $200 each.
Now even the lazy villagers also ran around to catch the remaining monkeys!
They sold the remaining monkeys @ $200 each.
Then the merchant announced that he will buy monkeys @ a new price of $500 each!
The villagers start to lose sleep! ... They caught six or seven monkeys, which were all that were left running free - and they were paid $500 for each one.
The villagers were waiting anxiously for the next announcement - hoping and expecting yet another large price increase.
Then the merchant announced that he is going home for a week, but when he returns, he will buy monkeys @ $1000 each!
He asked his employee to take care of all the monkeys he bought and had housed in a big cage for all to see.
The employee was alone taking care of all the monkeys in a cage and the merchant went home.
The villagers were very sad as there were no more monkeys running wild left for them to capture and sell at $1000 each.
Then the employee told them that he will secretly sell some monkeys @ $700 each.
This news spread like wildfire. Since the merchant will buy monkey @ $1000 each, there is a $300 profit for each monkey that the villagers could buy from the employee for only $700 each.
The next day, villagers waited near the monkey cage and sure enough, the employee sold all the monkeys at $700 each. The rich bought monkeys in big lots. The poor borrowed money from money lenders and also bought monkeys - on credit - but confident that they would make a profit.
The villagers took good care of their monkeys & waited for the merchant to return.
But nobody came! ... Then so they ran to the employee...but he had already left too!
The villagers then realised that they have bought all of the useless stray monkeys @ $700 each and had been feeding them and caring for them but are now unable to sell them - at any price!
Bitcoin will be the next monkey business
It will make a lot of people bankrupt and a few people filthy rich in this monkey business.
That is how it will work.
LESSON: getting something for nothing is not easy and it requires a few very smart people and lot of dumb ones.
