I buy bitcoin with the expectation that bitcoin will solve the problems it currently faces and become more widely accepted thus increasing demand driving up the price. After that crash, the industry re-invented, pushed forward tech and then Google etc came and actually started making some real hard cash! You gotta have it. I believe MMM has missed the point completely in his rant above. After all, you could make the same argument about Mr. Money Mustachesfingernail clippings: they may have no intrinsic value, but at least they are in limited supplyso lets use them as the new world currency! Mr. Money Mustache @mrmoneymustache Follow @mrmoneymustache There's nothing wrong with blockchain technology - as I said in the article. The reason that people have never owned their own money as you inelegantly put it, is because there is no full faith and credit under this model. Not going to do this with you.. I can see scenarios where some of these platforms develop staying power and become increasingly valuable for the actual work that they are needed to accomplish. Is the theory that eventually there wont be anymore banks? Its a vicious cycle, but Ive just got to bite the bullet instead of going Wah, it was $2 cheaper a week ago.. Mr. Money Mustache 3) If you are retired, with enough to last you the rest of your life even in cash, then you have eliminated most risks (market crash etc) but not all- the currency you hold your wealth in can fall greatly. I have no issue with the block chain. Calling this a waste of human energy is NUTS. It's natural to just look at the price itself and how much it's . Now, when that happens, I am ready either way. But the fantasy that the world will switch to Bitcoin so you'll need it to conduct commerce so you better get yours now is just totally implausible to me. Andre Kostolany. It can be entertaining, though, to sit there and watch people who just happen to have $7k in small bills on them feed it into the machine at 2 am. Its not about bitcoin anymore and unfortunately people still dont realize that. I dont invest in Bitcoin, but Ive had this sob story in the back of my mind about how I missed out when I decided sometime pre-2010 to NOT mine Bitcoin. Bitcoin has its flaws and needs to improve as you mentioned: Given that China has a lot of bitcoin mines and electricity is produced by coal in China mostly thats a lot of unnecessary CO2 that just got bumped in the atmosphere. And what about physical forms of cash for private sales? While it is true that stocks are probably expensive right now, one thing that doesnt get mentioned enough with Shiller P/E is the E represents the 10-year rolling average inflation-adjusted earnings. Sir, its $0.33 for that pound of bananas. You are as usual missing the point and are behind trivia! Lastly if you still are convinced that your fingernails and bitcoins are synonymous then you may want to contact the Chicago mercantile exchange (CME) or the CBOE as they both recently added bitcoin futures contracts for investors. Speculation is fine, as long as you are using only money you are willing to lose. Alright then, do you have all your money invested in cryptocurrencies? 100% agree. Because of this, newspapers start reporting on prices daily, triggering so many tales of instant riches that you notice even your barber and your massage therapist are offering tips on how to invest in this new asset class. In the field of personal wealth, this means walking your children past the idling lineup of your neighbors Mercedes SUVs, over the snowy grass and up to the door of the school and being confident that you are doing the right thing. This has happened with EVERY speculative event throughout recent history. 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. The stock market over the long run will ALWAYS grow as long as the population and technology and our output as humans continues to grow. The general trend seems to be accusing me of not doing enough research, even after I dug into this stuff pretty deeply for a long, long time. Also appreciate fungibility. This is no different from rich wall street people and government controlling fiat currency. My heart would break if I said goodbye to $200k. And likewise you can scratch off the idea of any government backed cryptos, because those are by definition centralized. However, Bitcoin is one of the least performing major cryptocurrencies, so lets not talk about fucking Bitcoin all the time just because the price of one unit is in the thousands. January 4, 2018, 2:35 pm. I also invested in a bitcoin two years ago, and paid off all my debt with it. This fiat economy itself is only 40 year old. theirlong-term viability, you have completely missed the bigger picture. Therefor, John will go on believing strangers on YouTube over me so I will be there to pick up the pieces when the house of cards crumbles. Saving billions from poverty, war, and the enslavement of banks or the lack of any banking is Altruistic. The price went on a historic and seemingly unstoppable run all the way to $150 per barrel in 2008. January 2, 2018, 8:08 pm, Another great article that i share with my friends who are obsessed with Bitcoin: http://contrarianedge.com/2017/12/01/bitcoin-millennials-fake-gold/. Yes. While I agree with your sentiment about Bitcoin I have been echoing similar warnings to friends and family since its mid-2017 breakout to $2k I think several other cryptos are definitely deserving of a portion, albeit small, of an investment portfolio. In fiat currency the car is valued at $41,940, but 18 days later, the car is valued at $31,850. I believe the current Cryptocurrency investment mania is a huge waste of human energy, and our rate of waste has been growing exponentially. Lady Dividend Quick, get me that money on PayPal before you miss out on any more of this incredible performance!, Figure 2: Random people on Twitter doing some deep, useful Investment Analysis on Bitcoin. Hardware. Its like trying to say Bank A is better then Z Bank because it has a fancy new way of getting money. Theres illegal activity in all its shapes and forms (ie. MentalArson BigTasty1212 Blockchain is just a computer protocol, which allows two people (or machines) to do transactions even if they dont trust each other or the network between them. I enjoyed this analysis by Aswath Damodaran, a thoughtful investor and Professor at NYU school of business. False analogies. So, they sell it at a discount instead of losing revenue. First petition your government to audit this fraud bank which they have not done in decades! Silicon Valley is out to eat Wall Streets Lunch and this tech will defy all ideas of finance that have come before. 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. And if YOU had bought my fingernails halfway through this article at $100 instead of waiting until they were $70,000, you would be a paper millionaire too! If it works out, its a windfall. And it gets worse: Some large, popular components of the S&P have a PE of closer to 300, meaning it would take 300 years to earn back your initial investment. babysitting, lawn mowing, snow shoveling, etc..) So, how is Bitcoin replacing that? January 2, 2018, 6:46 pm. However EVERY SINGLE BITCOIN TRANSACTION IS PERMANENTLY RECORDED AND TRACEABLE. January 4, 2018, 2:48 pm. Sun, these guys are just parroting stuff the banks put out, to suit their points. Trust yes. I am not a millionaire either or have any heavy investments in any of this and I am not certainly looking to grow my investments by commenting on a blog, of all places! Ive yet to find anyone who has. Bitcoin (aka CancerPills) has become an investment bubble, with the complementary forces of Human herd behavior, greed, fear of missing out, and a lack of understanding of past financial bubbles amplifying it. January 15, 2018, 9:20 am. Heres a great description of the whole scene by Chain CEO Adam Ludwin. Its a speculation, pretty much like buying gold. January 3, 2018, 4:28 pm. One book that I found very useful in understanding the greed-fear cycle (and Central Banking and the Federal Reserve system to boot) is the 2001 classic Towards Rational Exuberance by Mark Smith. This inefficient design is now wasting more electricity than many entire countries. FirstPrincipleThinking Is this likely to be worth $20,000 long term? Some companies are already testing it in main net as well! How many do you need? Mr. Money Mustache is a thirty-something retiree who now writes about how we can all live a frugal, yet awesome, life of leisure. Couldnt have said it any better myself. The only reason the dollar is working as money is because it started out with gold backing and then they gradually removed the backing. I could only shake my head. Market timing is a fools errand anyway. Bitcoins are all the same, they are not numbered, they dont rot and dont have a shelf life. Cmon people its not rocket science. January 3, 2018, 8:06 am. Maybe not $500,000 an ounce or a bulb, but at some other far lower price, they can be an entirely reasonable purchase. When evaluating investment bubbles, it means looking at where everyone is throwing their money no matter how many billions and being willing to say Bull. rollie fingers If they had money in gold they could have mitigated some of the affects of the politicians and bureaucrats in those countries (and the IMF). Good post. Im just a mere boring community banker by trade and I get dismissed for speaking out about bitcoin because I just dont understand the new economy. 26 Replies 18313 Views March 27, 2020, 01:47:17 PM by talltexan: How do you press your kids to learn money habits? VTSAX returned over 22% last year. You need some sort of fundamentals, and in bitcoin there are none. He said Bitcoin is stupid and speculative. If people are creating an bubble out of it, people is stupid, not bitcoin. The Money Mustache Community . Woodser Why? Please dont fall for Hype, generally fed by the Banks and their Media! November 20, 2018, 11:56 am. January 3, 2018, 12:55 pm. Read your history, it happens occasionally even in the great USA (a few times actually). A real, usable currency CANNOT have such huge fluctuations. If you want a proper Blockchain, then it has to be decentralised and a Public ledger where multiple computers across the globe validate and keep it secure, and we already have Bitcoin for that which already has the necessary network effect, the developer ecosystem and helluva lot of miners. Don't look at prices, look at relative prices. November 20, 2018, 9:31 am, rollie fingers (Or computers or spaceships.) So theres a positive feedback loop here. (see: Long Island Iced Tea Corp. becoming Long Blockchain Corp.). It is not an investment. MentalArson Max Your Freedom Well, SOMEONE has to keep the bankers & wealthy rich, right??? 1 Replies 290 Views February 10, 2023, 05:55:08 AM . Sun, these guys are just parroting stuff the banks and their Media reason the is. 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