*pop*. I enjoyed the cancer pill analogy, probably the best I have heard of yet. January 3, 2018, 1:43 pm, Apparently, Amazon pays people in other countries with Amazon gift cards. And there are so many investors who buy Bitcoin without even understanding what Blockchain iswhich is just scary. I just want to point out that since Bitcoin is maxing out its current number of transactions per second, the waste of energy is actually tied to the price of a Bitcoin, not the number of transactions (the more a single bitcoin is worth, the more energy each miner is willing to spend trying to complete transactions, which earns them a bonus paid in bitcoins). Look at all the nations that proposed a EUR based oil exchange, all overthrown (no, not saying those were shining examples of humanity but the prioritization is simply correlated enough). 3 years and 1 week later. The bad news is that this means Bitcoin is going to keep wasting more and more electricity as the bubble goes on, and it doesnt matter that no one uses it anymore. Keep fighting the good fight, Vijay. You gotta have it. However, taking a very small gamble doesnt hurt 99% is invested in s&p 500 and that will remain like that :). That is what people said 1999/2000 for the dotcom bubble. The root of crypto is decentralization and independence from government that empowers people. Its like saying they are investing in lottery tickets. Ryan Thomas 26 Replies 18313 Views March 27, 2020, 01:47:17 PM by talltexan: How do you press your kids to learn money habits? In order to have decentralization, there needs to be an incentive for people to commit resources to running the network. Reward for Risk is worse for Powerball. If Blockchain is so great, why have individual Banks not been able to release their own Blockchain currencies in so many years? The need for a cryptocurrency is very real. But yes: Bitcoin is silly at current prices. That is wrong. No problem! But how do you know youre investing in Amazon, and not Pets.com? > There is a high chance that Bitcoin doesnt remain #1 forever because there are so many cryptocurrencies, many of which with very different applications, including some that arent even based on blockchain technology. I dont see any other motive behind this article other than a biased effort to please someone, especially with the choice of words used like stupid, ridiculous, holy shit as if everyone who parked 700 billion on crypto belong to an alien species. In order for bitcoin to be a real currency, Adeney claims, it must be three things: easy and frictionless for trading between people, widely accepted as a legal tender for all debts (both public. All these ICOs are just insane. One place where coin mining could considered reasonable is during winter in a home that is already heated with electric resistance heaters. I dont think so. Its like Winston Churchill said: Gold is the silliest, most irrational thing you could ever use as money. People went off on many rants back when a single tulip bulb could have the same value as a ocean going ship, just as back then we had many people who couldnt stop talking about how great tulip bulbs are and why we should all be buying them. All technology goes through a bit of a curve where new technologies have multiple competitors and slowly they formulate around standards and a smaller core group of players. It has a track record though ill give you that. In the US, Pesos are worthless in transactions and cost money to convert to US dollars. Speculation of these underlying earnings is what often pushes stock prices higher. Justin C ..why hasnt shutting down bootlegged videos on P2P bittorrent etc been effective? 1) If gold is a bubble, it is a > 5000 year one Michael I was tempted by the neat aspect of being involved in this thing I knew would have some kind of future value blockchain. I read through your article bordering on rant at many places and would suggest you to go through the following Mr. Money Mustache. Index fund investing is both the simplest and the highest performing way to invest your money. Its only valuable when you cash it out to a real currency again, like the US dollar, and use it to buy something useful like a nice house or a business. A lot of stocks never pay dividends though. Full faith and what? Why? I think in five years bitcoin will pretty much disappear. His rhetoric about trusting the wise elites of the Federal Reserve also irks me. But, dont you initially invest money into Bitcoin thru your bank? Tim Beck This is exactly what happened in the 1970s: The nominal price of stocks remained roughly the same while their effective purchasing power was cut more than in half, eventually prices will come back up. Then they go on Twitter and demand that Mr. Money Mustache apologize to his followers for telling them that speculating on future frisbee prices is not a good idea. But sometimes they do. It has reached the point that a big percentage of stories in the financial news and questions in Mr. Money Mustaches email inbox are about whether or not we should all invest in BitCoin. but fail to recognize that the USD also has no intrinsic value. Well, shit. Also, what is the source of that study? So my question becomes If you want to trade in crypto currency, have you been trading in Yen or Rubles or Pesos?. There are literally centuries worth of data on the gold price and it is remarkably stable against all other commodities (and paper assets) over long stretches of time because of math and physics. Marketed to unsophisticated investors as a get-rich-quick scheme. The Cryptocurrency bubble is really a replay of the past: A good percentage of Humans are prone to mass delusions which lead to irrational behavior. They always do.. obsolete. Real investments require production and income. God speed my friend. Dr-In-Debt Perhaps us libertarian believers are wrong, and this can be maintained indefinitely. I reply, if its gotten that bad, I dont want to live in that world anyway. Bitcoin is actually a saviour that provides the world an opportunity to get out of total mess without fighting a WW3! You should have just invested in winning lottery tickets instead of bitcoin, they have had a much much higher rate of return. farmecologist It's the ultimate win/win because you just set it and forget it. ie beauty counter for nerds. > On the other hand, some items such as historical art, with no intrinsic value other than emotional attachment, can be worth millions. If you had invested a hundred dollars a few years back instead of showing your polite smile, you would be a millionaire today! Educate yourself on why Bitcoin and Blockchain cannot be split up. Sooner or later, the fundamentals of the underlying business should and will reflect in the stock price. He or she still determines the current market price. Millions of people streaming interactive video games. But if it goes down, I wont put anymore money into it. Cancer-Away, CancerBgone, CancEthereum, and any other number of competitors would spring up. This article is pretty below par in its research and very one sided. Anyway, to your other point, the main beneficiaries of this bubble are the exchanges. Some make the argument that blockchain on its own has some merits that may be so. Well, SOMEONE has to keep the bankers & wealthy rich, right??? That is what is pissing me off. What value is there? . How else should people behave? Will it get me my money faster? TO_Ont Yes. It is an innovation worthy of a Nobel that is being trashed by MMM and his horde of supporters who have no clue how the Internet of Money is going to replace everything we know about Banking and Finance! People who have been trading 100s to buy illegal goods must be making out. When the US dropped the gold standard it allowed the government to print paper that we perceive is valuable without any actually commodity to back it. That, is where were at. Cryptocurrencies are extremely risky. Why the hell would you have an intermediary like that when buying bitcoins? Do you fault coffee or corn or wheat for being non-productive, or do you appreciate them as goods, at an appropriate price? Even if you are the only one in the room willing to do it. While some businesses have established arrangements whereby you can pay for some goods or services using cryptocurrencies there appear to be a novelty by and large. I always remember one sound arguments on investing that goes something like if they need to over explain the product and their business model, then Im not buying it.. (based on July 20th blog post) Started by caracarn. I 100% agree with what Vijay has been saying. It is a commodity. Ms. Frugal Asian Finance These units run circles around the baddest gaming PC with 6 graphics cards in terms of performance, but they are noisy and not a good room heater for anyone with Ok hearing. US is just one country in this big bad world, and not vice versa! Update, three years later: Since I wrote this, the imaginary price of Bitcoin has continued to be all over the map it initially dropped over 70%, then it went back up many hundreds of percent, over and over. Which happened 47 years ago, not 40. In short this is nothing more than trust. Think about how many leaps needed to be made for someone in 1990 to believe such a thing was possible. Its like when preppers talk about arming themselves and building shelters out in the desert filled with canned goods. So for it to be a global currency taco bell is going to have to start paying kids in btc. Me personally, Im betting on the buck. January 3, 2018, 12:48 pm. The reason is that its not an investment. 3. I had no idea the market capitalization of Bitcoin and the other crypto-currencies are so high. In a practical sense, this . Undoubtedly the bubble will burst or mining difficulty will increase, but Ill be able to sell this supercomputer to some nerd play World of War Craft on. Jay Holden Google, Amazon and Facebook came out of it. One thing in that seems to be missing in this conversation that Bitcoin maximalists will always point out: Yeah we could all gamble our way to FIRE, this week bitcoin, next week slot machines, poker, etc. Secondly, Governments are (by definition) other people, spending other peoples money on what other people tell them are other peoples problems often they screw up fiat currencies through simple incompetence they have no motivation to get it right. With governments coming on board, digital cash will stop money laundering and all these bad things Bitcoin has been associated with. If you're like most Americans, you're a few . Im sorry MMM, but the consensus is that your fingernails are worth nothing (you couldnt even pay me to hold them), and that 1 BTC is worth more than your bike. Please drop the bullying and come back to join the conversation. Congratulations, it sounds like you gambled and won. I let it sit around 2.5% of my savings (Im still growing my nest egg). So now that youve got an truly immutable public data store, what do you do with it? in my opinion. January 3, 2018, 7:32 am. On the other hand, some items such as historical art, with no intrinsic value other than emotional attachment, can be worth millions. Take risks, but keep educated and with good money management. Even then, like with investing in a new company, youre taking substantial risks. It is an honor to be doing this session! Also, for the first time in history, it will soon be possible to make millions of sub-cent transactions efficiently without any significant fees. This inefficient design is now wasting more electricity than many entire countries. In Ancient Rome and today one ounce of gold bought a very nice dress suit. I buy a stock with the expectation that the company will perform and the value in the future will be higher than it is today. I would recommend everyone to do their own research because many of what MMM says is plain wrong. January 4, 2018, 2:35 pm. Publicly verifiable voting as well, when the chains are worth trillions. Youll note that without prejudice and emotion, he describes the actualuses of the technology, without getting intohow we should all place uninformed bets on its future value. Pure utilitarian arguments have an implied slippery slope attached to them, and the description of benefits and priorities are largely arbitrary. January 4, 2018, 2:23 pm. Being knowledgeable about finance does not mean being knowledgeable about economics. I can 100 percent guarantee you that my mom and pop will still be using fiat paper, and so will I, and so will the worlds governments. but remember short positions have a possible infinite downside while buying the asset has a possible infinite up side, If you do this youre still speculating on a market that cant be understood right now. Maybe you are suggesting that in the future Bitcoin will be just as good or better than Fiat, but thats speculation. It is also an opportunity to get the 2 Billion unbanked people on the planet to also enjoy a level playing field through this new Internet of Money. If it was instead patentable Id buy some stock in the holder. But yes, I would not invest in crypto currency. This is because society is nothing but an abstract grouping of individuals. The short answer is they can do nothing about it! Stop Ironing Shirts As soon as I read you were selling a bag of your nail clippings for $100, I thought to myself that is a great deal! January 3, 2018, 12:22 pm. The bitcoin price isnt rising because people are buying the coins to conduct real business. I advise you look at the 10-year PE ratio. Then my father used the same toilet paper for his cars and his house? hi vinau i read what you wrote and i felt compelled to tell you that i respect you. Why? FOMO! Finally, nothing becomes a good investment just because its been going up in price lately., If you disagree with me on that point, the price of my fingernails has just increased by 70,000% and they are now $70,000 per bag. If you were setting up your portfolio from scratch today, would you buy $500K of GBTC with it? And just as a warning, I am always going to tell you that price speculation is a bad way to spend your life. Hmmm..why not pay in bitcoins if it is so superior? OK, But What if Bitcoin Becomes the World Currency? In 2018 and 2019, expect the speculation to subside as more tokenomics becomes important for valuations. I dont have time to play PC games 24 hours a day, so I might as well use my fancy computer to make some money while Im away from it. Right now a nascent currency like Bitcoin is not able to handle the transactions in a similar fashion due to limited bandwidth, and people like you point that out and say, look it cannot even handle the current level of transactions how is this thing going to replace Visa or MasterCard? If you introduced a brand new commodity to the world, would you expect the price to be stable? Basic Economics Vijay. The ones that take off will likely be govt created versions. Thats what I have been saying guys. The internet became an amazing avenue for wealth. This is bitcoin's intrinsic value and the longer it exists, the more apparent it will be. Thanks for sharing your opinion! 1. This Vice article explains yet another ridiculous aspect of Cryptocurrency: running the transaction network (called Mining) involves a deliberate computer-intensive crypto challenge syetem called proof of work. I have accepted lifes nudge and opened up several pages of your blog and am working through them right after this, The Vigilante Because I still cant pay for groceries in my town without swiping a card or handing over some US dollars. WHY HAVE YOU NOT INVESTED YET!?!?! I have to disagree with one of your points here: in a worst-case scenario, if you have enough gold, you may be able to beat it between some rocks to make a serviceable frying pan. Almost everyone will have access to a mobile phone and network in a decade which is when I expect brick and mortar banks to collapse completely! The problems it solves for the billions of people in the second and third world shouldnt be so casually dismissed though. ;). A large proportion of other coins are long term holds. MentalArson Dit is je geld nu waard als je een jaar geleden Bitcoin, goud of andere assets kocht. It is subject to crazes and manias. This way you will be truly rich in 5 years. 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