Every day that passes, Bitcoin gets closer to its true intrinsic value, which is $0.
During October 2025, it reached its highest delusional price of $126,198.07 USD. Today, it sits at $68,038.19 USD: approximately a 46% drop in about six months. And this is just the beginning.
Bitcoin is nothing more than a sophisticated pyramid scheme designed to take money from naive people who have seen too many get-rich-quick schemes on social media. It’s also a fantastic tool for terrorists, drug dealers, and money launderers who need to move money around.
The price of Bitcoin has been maintained by the “Greater Fool Theory.” Someone buys it because they think there is a greater fool willing to buy it later. But guess what? The world is running out of fools. It’s a huge turn-off when Bitcoin investors haven’t seen any gains during the past two years.
Bitcoin drops 46% in Six Months
The Trading Platforms are Bleeding Out
With the price decline of Bitcoin, fewer people are eager to trade it. That’s a bummer for companies that depend on gullible traders for their profits. The most obvious victims of this decline in Bitcoin trading are Coinbase and Robinhood.
Coinbase is down 54% during the last 6 month.
Coinbase operates much like an online stockbroker, except instead of stocks, users buy and sell crypto assets like Bitcoin and Ethereum.
It serves two main groups:
Retail investors using its app or website
Institutional clients such as hedge funds and asset managers
The company earns a large portion of its revenue by charging transaction fees every time someone buys or sells crypto.
This is the engine of the business, because people are trading less Crypto, the revenues are dropping quickly.
Robinhood, down 53% in part due to the decline of Bitcoin
Robinhood’s crypto business lets users buy and sell assets like Bitcoin and Ethereum directly in the app.
Unlike stocks:
Crypto trades are not routed via PFOF in the same way
Robinhood earns money through a spread (markup on buy/sell prices) and transaction-based revenue
The key point: crypto is a revenue amplifier
Crypto has historically contributed a large and highly variable share of Robinhood’s revenue:
In peak periods (like 2021), crypto generated 40%+ of transaction revenue
In quieter markets, it can fall to single digits
This makes crypto:
Not always the largest segment
But often the most volatile and cyclical driver
Why crypto matters so much to Robinhood
Robinhood’s user base skews:
younger
more speculative
more reactive to trends
Crypto trading fits that profile perfectly. When crypto heats up:
trading frequency spikes
new users join
dormant users return
When crypto declines:
engagement drops sharply
revenue contracts
When the price stops going up, the “get rich quick” crowd disappears. This creates a liquidity crisis that makes it harder for remaining holders to exit their positions without further crashing the market.
Michael Saylor’s Strategy: A Leveraged Nightmare
The most precarious domino in this collapse is Michael Saylor and his company, MicroStrategy. Saylor has famously bet his entire balance sheet on Bitcoin, but he didn’t just use cash: he used massive amounts of leverage.
The Strategy Math is Failing:
Average Cost: Strategy’s average purchase price is approximately $76,052.
Current Value: With Bitcoin trading near $68,000, Saylor is officially “underwater.”
The Collateral Problem: Strategy’s debt is secured by the Bitcoin itself. As the price drops, the value of his collateral shrinks.
If the Bitcoin price crash continues, Saylor will be forced to sell to meet debt obligations. Because his holdings are so massive, his forced selling would trigger a “death spiral,” flooding the market and tanking the price even further.
Strategy is now down 62% during the last 6 months.
Strategy is now down 62% during the last 6 months. I be Michel Saylor is having some sleepless nights.
Five years of Underperformance
While “crypto bros” promised generational wealth, the data tells a different story. Over the last five years, Bitcoin has significantly underperformed the S&P 500.
Productivity vs. Speculation: Stocks represent companies that create value. Bitcoin creates nothing.
Criminal Utility: Bitcoin remains the preferred currency for tax evaders and cyber-criminals.
Why you must Get out Now
If you have any holdings in this asset class, the most rational move is to liquidate immediately. The history of financial manias shows that the final collapse happens much faster than the build-up.
Waiting for a “rebound” is a dangerous game when the largest holder in the world is facing a potential margin call. Decent people should stay away from an asset that benefits only the corrupt and leaves the average person in financial ruin.
Summary
The Bitcoin price crash is the natural conclusion of a speculative bubble that lacked fundamental utility. With Michael Saylor’s Strategy underwater and trading platforms in retreat, the floor is falling out.
Frequently Asked Questions (FAQ)
Why is the Bitcoin price crashing in 2026? The crash is driven by a lack of new buyers, high interest rates, and the looming threat of forced liquidations from major holders like MicroStrategy.
Is Michael Saylor’s company going bankrupt? While not currently in bankruptcy, the company is “underwater” on its holdings, meaning the Bitcoin is worth less than what they paid for it, creating immense pressure on their debt.
Alain Guillot is a part-time blogger and solopreneur based in Quebec. After immigrating to the province, he struggled to find work due to his limited French, which pushed him to create his own path through entrepreneurship. That journey sparked a deep interest in personal finance and investing. Today, he lives a FIRE (Financial Independence, Retire Early) lifestyle and shares thoughtful, opinionated insights on his blog, AlainGuillot.com. This blog appeared first on his blog and is republished here with permission.
For most investors, no. Gold does not produce income, has delivered inconsistent long-term returns, and is not a reliable hedge against inflation or market uncertainty. A disciplined, evidence-based portfolio built on equities and bonds has historically provided more consistent growth.
Why Gold gets Attention
I tend to get questions about gold at predictable times:
When gold or gold stocks have recently performed well, which triggers greed
During periods of political or economic uncertainty, which triggers fear
Both are emotional responses. Neither is a reliable investment strategy.
Is Gold a Good Investment when it is Performing Well?
Not necessarily.
Gold’s price is largely driven by what is often described as the “greater fool theory.” You buy it today hoping someone else will pay more for it later.
Unlike productive assets like stocks or bonds, gold does not generate income. It does not pay dividends or interest, and it does not produce cash flow. In many cases, it also comes with costs such as storage or insurance.
Your return depends entirely on price appreciation, which is unpredictable.
What has Gold’s Long-term Return looked like?
Gold has not delivered reliable long-term returns.
Over extended periods, gold’s return after inflation has been modest and inconsistent. While there have been periods of strong performance, these gains have often been followed by long stretches of little to no real progress.
In contrast, productive assets such as global equities have provided sustained long-term growth.
Investors who try to time gold’s periods of strong performance often take on additional risk and may miss out on the more consistent compounding provided by equities.
Does Gold protect against Inflation?
Not reliably.
There have been periods where gold has outpaced inflation, but there have also been long stretches where it has not. For example, following its peak in 1980, gold experienced a prolonged period of weak performance, taking almost 20 years to recover in real or after-inflation terms.
More importantly, gold is far more volatile than inflation. Since 1970, gold has been about 10 times more volatile than inflation as measured by the Consumer Price Index.
That level of volatility undermines its usefulness as a stable hedge against rising prices.
Is Gold a Safe Haven?
This is a common belief, but the evidence is inconsistent.
Gold may perform well in certain environments, but those outcomes are unpredictable and not dependable. The idea that gold consistently protects wealth during crises is not strongly supported by data.
Much of the “safe haven” narrative is driven more by perception than by evidence.
Does Gold improve Diversification?
Less than many investors expect.
Gold and commodities do not produce income, and their returns depend on price changes. That makes their long-term outcomes less reliable than productive assets such as stocks or bonds.
A well-constructed portfolio should prioritize asset classes with positive expected returns.
Should you hold any Gold?
Only indirectly, as part of the broader market.
For Canadian investors, a material exposure to gold already exists through mining companies within the TSX Index. Unlike gold bullion, these companies generate earnings and may pay dividends. A diversified portfolio naturally includes this exposure without requiring a separate allocation.
Anything beyond that moves from disciplined investing toward speculation.
A simple framework for Decision Making
When evaluating any investment, I encourage clients to ask three questions:
Does it produce income?
Does it have a reliable long-term expected return?
Does it improve portfolio outcomes in a measurable way?
Gold struggles to meet all three.
That does not make it useless, but it does make it difficult to justify as a core holding in a long-term portfolio.
A Real-World Observation
Over the years, I have had many conversations about gold in social settings.
They often follow a familiar pattern. A discussion about markets turns to gold, and someone becomes very passionate about it. These individuals are often referred to as “gold bugs,” and they tend to hold strong convictions about gold as a store of value or protection against the financial system.
In one conversation, I was told quite confidently that I was doing a disservice to my clients by not allocating the majority of their portfolios to gold.
What stood out was not just the conviction, but the certainty. In investing, that level of certainty is often where the risk lies.
What happened next is what matters.
Over the following decade, gold prices were largely flat. During that same period, a globally diversified portfolio delivered strong long-term returns.
The real cost was not just the lack of return from gold. It was the opportunity cost of missing the growth of productive assets.
That experience reinforced a simple truth. In the long run, evidence tends to be more reliable than conviction.
Bottom Line
Gold tends to attract attention during periods of greed and fear.
But when you step back and look at the evidence:
It does not produce income or cashflow
Its long-term returns have been inconsistent
It is not a reliable inflation hedge
Its diversification benefits are limited
For most investors, a disciplined approach grounded in evidence and focused on long-term outcomes remains the more reliable path.
Frequently Asked Questions
Should Canadians invest in gold?
For most Canadian investors, no. A diversified portfolio of equities and bonds provides a more reliable way to grow wealth and manage risk over time. Exposure to gold already exists indirectly through the broader market. Continue Reading…
Understand the factors that affect investment decisions so you maximize your portfolio returns
TSInetwork.ca
It’s generally a waste of time to obsess about a short-term downward movement in the economy, stock market or both.
These downward movements can occur for a wide variety of reasons, at any time: even outside the kind of significant downturn caused by COVID-19 or, more recently, higher inflation and the Russian invasion of Ukraine, or the current U.S./Israel attack on Iran.
Still, for every “real” short-term downturn, you can spot a dozen fake-outs: situations where the market or economy looked like it was going into a tailspin but pulled out of the drop and began rising at the last minute.
On the other hand, it does pay to obsess about factors that affect investment decisions like portfolio diversification, investment quality, and the extent to which your portfolio suits your personal goals and temperament.
1.) What is the appropriate asset allocation for my portfolio?
A diversified investment portfolio should be spread across multiple asset classes for risk management and potential growth. The main components typically include:
Stocks provide growth potential and can help protect against inflation over the long term. They tend to be more volatile but historically offer higher returns.
Bonds offer steady income and help reduce overall portfolio risk. They generally provide more stability than stocks but lower potential returns.
Cash equivalents, like money market funds or GICs, offer safety and liquidity but usually provide the lowest returns.
The specific percentage allocated to each depends on your personal circumstances, but maintaining this basic diversification helps balance risk and return potential.
Remember that regular rebalancing helps maintain your target allocation as market values change over time.
Spread your money out across most if not all of the five main economic sectors (Finance, Utilities, Manufacturing, Resources, and the Consumer sector). The proportions should depend on your objectives and the risk you can accept. The Finance and Utilities sectors generally involve below-average risk. Manufacturing and Resources tend to be riskier, and the Consumer sector is in the middle.
As well, balance aggressive and conservative investments in your portfolio, in line with your investment objectives and the market outlook. Above all, avoid the urge to become more aggressive as prices rise and more conservative as prices fall.
Quality investments can be identified by examining key financial metrics such as consistent revenue growth, stable profit margins, low debt levels, strong cash flows, and competitive advantages within their industry.
The best blue-chip stocks offer strong investment quality. When the market suffers a significant downturn like that prompted by the emergence of the coronavirus pandemic, these stocks generally keep paying their dividends, and they are among the first to recover when conditions improve.
In keeping with the Successful Investor philosophy, we feel stocks that have been paying dividends for five years or more are some of the safest investments you can have. Dividends are a sign of quality and a company’s financial health. Canadian banks and utilities are among the income-paying stocks that we consider to be safer investments.
3.) Why is it important to have a disciplined savings plan?
A disciplined savings plan creates financial stability by building wealth consistently, protecting against emergencies, and helping achieve long-term goals through the power of compound growth.
If there is one piece of personal wealth management advice you should immediately implement, it’s to have a disciplined plan for saving during your working years. This, above all things, can set you up for optimal investment gains. We talk more about this in 9 Secrets of Successful Wealth Management, which is free for you to download.
Many of our wealth management clients live off their investments. From time to time, they need to sell some of their holdings to supplement their dividend income. But rather than trying to predict price changes or spot highs and lows, we ensure that decisions affecting the client’s portfolio are tailored to his or her circumstances and temperament.
4.) How can I find hidden assets on a company’s balance sheet?)
A company’s hidden assets can be uncovered by analyzing the footnotes in financial statements, examining goodwill valuations, reviewing off-balance sheet items like operating leases or joint ventures, and investigating intangible assets like patents, brand value, and customer relationships. Continue Reading…
A month ago, I wrote about how the cycles pointed out by Kuznets, Kondratieff, and Minsky, combined with the writings of Joseph Schumpeter seemed to be coming together at the same time. Now that the war in Iran is nearly a month old, it seems the match has been lit that will set the frightening confluence ablaze. It sure looks like we’re in a credit bubble that is beginning to burst.
The challenge when writing about major developments is to sound calm and purposeful when the natural inclination might be to be more animated. How to get people to take urgent action without coming across as an over-the-top doomsayer?
To begin, I need to stress that I do not see myself as a pessimist. I’ve been speaking to college students throughout southern Ontario for the past few months and when I tell them about something I call Bullshift (the optimism bias fomented by the financial services industry), they often ask if I’m not being biased and overly gloomy. I respond both with evidence and by conceding that everyone has biases, so their allegations against me, while not incorrect, are nonetheless likely to be overstated. My view is that better wealth decisions are made using facts, critical thinking and a dash of skepticism regarding the finance industry’s motives.
If Iran war lingers on, credit markets will be stressed
There are multiple indicators that are now showing credit markets in a state of high stress. The longer the war in Iran persists, the worse the situation is likely to become. As such, here are a few things you could do immediately to reduce your exposure to credit:
1.) If you have not already done so, build an emergency fund. Many people use the equity in their home for this. The caveat here is that real estate prices are likely to drop in the short term, as well, so be careful. Where possible, consider setting aside money in a high-yield savings account for emergencies. When you’re financially cushioned, you’re less likely to rely on more punitive alternatives when money is tight. Continue Reading…
Retirement may last longer than you expect. The question is: is your portfolio built to keep up?
Image courtesy BMO ETFs/Getty Images
By Alain Desbiens, Vice-Chair BMO ETFs
(Sponsor Blog)
Canada is undergoing a profound demographic transformation that will influence the nation’s economic trajectory and long‑term investment landscape for decades to come. By 2036, Canadians aged 65 and older will account for roughly 23% of the population, up from approximately 19% today. 1
This aging shift is propelled by three powerful forces: rising life expectancy, persistently low birth rates, and immigration serving as the country’s primary source of population growth. Together, these drivers are reshaping not only the size and composition of Canada’s population but also the way investors and financial professionals must approach planning and portfolio construction.
For investors, these demographic changes create a dual reality. On one hand, the economy faces challenges such as higher healthcare and social‑support spending, and increasing strain on retirement income systems. On the other hand, new long‑horizon opportunities are emerging.
Sectors tied to aging populations, innovation in healthcare, longevity planning, and intergenerational wealth transfer all stand to benefit. Exchange‑traded funds (ETFs), with their cost‑effectiveness, diversification, and transparency, offer an efficient toolkit for capturing these evolving trends.
Key Demographic Trends
1.) Aging Profile & Generational Mix
Baby Boomers still represent about one quarter of Canada’s population, but by 2029, Millennials are projected to surpass Boomers in absolute numbers. 2 This generational shift will reshape demand across housing, consumption, and financial services. Millennials tend to prefer digital-first advice, sustainable investing, and simple yet sophisticated products — including ETFs — while Boomers continue to prioritize income generation, capital preservation, and tax‑efficient3 decumulation strategies. This changing balance in generational influence will increasingly dictate the types of investment solutions that gain traction in the market.
2.) Retirement Wave
Canada is entering a period where record numbers of Boomers are exiting the workforce and see increasing need for accumulation and decumulation strategies, and a higher demand for financial, will and decumulation strategies.
3.) Longevity Realities
Canadians are living longer than ever before, with meaningful implications for retirement planning.
Women 65+: Over half are expected to live to age 90. 4
Men 65+: More than half reach age 90 as well, though only about 39 per 1,000 do so without a major critical illness. 5
FP Canada/IQPF: A 50-60-70‑year‑old has roughly a 25% probability of living to age 94 (men) or 96 (women).6
This extended lifespan introduces significant longevity risk: the risk of outliving one’s capital. Financial plans must now be stress‑tested for longer retirement horizons, rising living costs, and variable health outcomes.
4.) Rising Costs for Aging‑in‑Place & Care
Healthcare inflation, long‑term care, and home‑care services are expected to grow sharply. These realities underline the need for specialized insurance solutions, inflation‑aware portfolios, and steady income vehicles that can sustain retirees across multi‑decade retirement periods.
5.) Wealth Distribution & Investor Segmentation
Canada is on the cusp of a major wealth transition:
Gen X is set to surpass Boomers in total net worth. 7
An estimated $450 billion will transfer to Gen X over the next decade.8
Total household wealth is projected to reach $10 trillion by 2030, reshaping investor behavior, risk profile8, and demand for advice.9
The Bottom Line
Canada’s aging demographic is more than a statistic: it is a structural force that will shape markets, spending patterns, and investment requirements. Investors who proactively position for these changes can build portfolios that are both resilient and growth‑oriented. With their flexibility, transparency, and broad exposure to demographic‑driven themes, ETFs remain one of the most effective vehicles for navigating this new era.
ETF Investment Opportunities
1.) Income Solutions for Retirees
• Longer lifespans + market volatility = demand for stable, tax-efficient income
If retirement is on the horizon, now is the time to look beyond when you plan to stop working and focus on how long your portfolio will need to support you. Longer lifespans mean portfolios must balance growth, income, and flexibility before the first paycheque replacement ever begins. Reviewing your asset mix, understanding your future income needs, and considering simple, diversified ETF solutions today can help reduce stress and create more confidence tomorrow. The years leading up to retirement aren’t just a finish line, they’re the foundation for decades ahead.
Want to learn more? Join Alain Desbiens and host Michelle Allen as they explore why longer retirements demand smarter strategies: inflation-aware portfolios and steady income that lasts decades, not just years. Listen to the podcast episode now!
8: Risk Profile – Comprised of a client’s risk tolerance (i.e., client’s willingness to accept risk) and risk capacity (i.e., a client’s ability to endure potential financial loss).
Alain Desbiens is Vice Chair, BMO ETFs. Alain brings more than 30 years of financial services experience to his new role. A seasoned financial expert and former broker, Alain has raised awareness of ETF benefits among advisors, direct and institutional clients through both individual discussions and impactful presentations. Alain is also active in multiple media formats helping provide insights on both the industry and investments. Over his career, Alain held roles as wholesaler, sales manager, branch manager, and investment advisor. He is a graduate of Laval University with a BA in Industrial Relations and has been recognized multiple times at the Canadian Wealth Professional Awards, including winning “Wholesaler of the Year” Award three times.
Disclaimer:
Commissions, management fees and expenses all may be associated with investments in exchange-traded funds. Please read the ETF Facts or prospectus of the BMO ETFs before investing. Exchange-traded funds are not guaranteed, their values change frequently and past performance may not be repeated.
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