Today, Jan 26, at 11:30 AM, its trading around $31,850. Fiat currency was implemented in 1933 in the USA. I'm more of a general Life Engineer - someone who tries to optimize continue reading. Long story short bitcoin provides value. Glorkvorn January 2, 2018, 7:25 pm. "@origamicyber So true! January 5, 2018, 8:29 pm. We live in a world where both can, do and will exist. I have no issue with the block chain. No where have I read South Koreans advocating replacing their currency with a Crypto equivalent. They always do.. I was excited to get in on the IFCO (Initial Fingernail Clipping Offering) but the price had already shot up while I was reading. He and his wife studied engineering and computer science in Canada, then worked in . Justin C Thats crazy. Cryptocurrencies are the key to humanitys survival. I think getting out with $500,000 would be a great thing, but then that would be an enormous amount of money for me. Well said! Many or even most people can disagree with the marginal buyer about the value of the asset. This YouTube Video is one of the best shortcuts I found for explaining how Blockchain (and Bitcoin) works. In a practical sense, this . Apparently they didnt like my edits, where I called out rogue nations for propping up BitCoin as a means to bypass sanctions. If you are disgusted with the mining costs of Bitcoin you should be but the fact remains new inventions like RaiBlocks has made cryptocurrency frictionless and without mining or fees with transactions at over 7,000 per second. If FIRE is your goal, Id get out. Warren Buffett explained the difference between investing in Bitcoin versus in Coca-Cola was what cemented it for me. (Now, as you mentioned, it is most likely just speculation driven by greed). The internet. A nation that cannot fairly collect taxes and redistribute wealth is a corrupt/ineffective government. While I dont consider Bitcoin an investment and I wouldnt advise anyone to pour their life-savings into it right now, I do encourage anyone reading this to buy a small amount and start using it to make everyday purchases. Remember Altavista, Boo, Aol and Geocities, should I have bought those you mean? Understanding the motivation is a big part of understanding Bitcoin. As the legend goes, an anonymous developer published this whitepaper in 2008 under the fake name Satoshi Nakamoto. Why not one of the other 1500 cryptocurrencies? 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. Publicly verifiable voting as well, when the chains are worth trillions. Do something useful with your money. Heck no. So, how is Bitcoin better or different? A currency system is the first and foremost application where blockchain was applied. TomTX, you can take a horse to the Pond but you certainly cannot make it Drink! Federal reserve banks and elected governments. And whenever the price bubble pops, you also have a $2700 paperweight. This is where the speculating comes in. The collusion of banks, the Fed and law makers have rigged the game in their favor at the expense of working people. Anyway, what would he dump it for? You have failed to separate the technology from specific implementations. To call gold a non-productive asset misses the point entirely. Further more rants about the skyrocketing cost of housing and how many people cannot afford their mortgages, with further people saying mortgage payments wont matter because those people can just sell for more when the payments become a problem. They saw value in it very early. Barak PazTal Fired & Free Funny, I was recently approached to put up a sponsored post talking up the virtues of Bitcoin. Ms99to1percent Do we really want a place where youre either an Amazonian or Walmartian? Is this likely to be worth $20,000 long term? Hard to shove a tulip bulb through the wires, eh? But some people actually DO value rare baseball cards and stuffed animals and gold and tulips at current prices, as goods in and of themselves. It is already in Beta testing and will be released this year. MMM said Government-issued currencies have value because they represent human trust and cooperation. It really starts to stink if it is left unattended to. A billion dollar gaming industry creating games worth watching. A stock is a share of an actual company, bound by rules and regs (however imperfectly administered, at least they exist). Why does bitcoin have to be the winner? Assuming you can know the exact price of a commodity on a given day is speculative, yes. For a shortcut to understanding good investing, you can also simply look up Warren Buffets thinking on almost any topic hes careful enough about offering opinions that by the time he makes a statement on something, you can be pretty sure it will be among the best answers out there. Even if Mining gets centralised, Bitcoins future cannot be dictated to by them! Bitcoin only has one, scarcity , and even that is debatable. Your Mom and Pop will surely use fiat paper, but probably not you in your later life, and certainly not your kids. Do you know the state of US debt recently? I for one am lucky enough to participate in the birthing of an alternative financial paradigm so that people have choices. The other argument for Bitcoins value is that there will only ever be 21 million of them, and they will eventually replace all other world currencies, or at least become the new gold, so the fundamental value is either the entire worlds GDP or at least the total value of all gold, divided by 21 million. Ms. Frugal Asian Finance That, is where were at. Vijay, I think you should sell every non-bitcoin asset you own, borrow as much money as you possibly can, and buy as many bitcoins as possible. Big ERN just recommended me to your blog and now I see that you beat me to the joke I just made. Who wants to sacrifice to earn financial freedom when you can just invest in Bitcoin and achieve the same in less than a year. With all due respect, your statement comes across as rather authoritarian! These are preposterous numbers. Also, not all crypto currencies use PoW to mine / verify transactions. Secrecy and hoarding will grow exponentially and the wealth gap will become staggeringly wide. Im only a mediocre computer scientist. Google, Amazon and Facebook came out of it. It doesnt come right back a couple of years later and soar again to a new price 10 times greater than the previous bubbles high, which is what bitcoin has done after each one of its three or four previous bubbles burst. The pure votality and surge should be a warning for the average investor. Bitcoin and altcoins consume a ridiculous amount of energy. Anybody can make a pill, and it costs only a few cents per dose. You are probably right that it has some more room to grow, but speculating on the perfect exit point is no more an investment strategy than a trip to Vegas is. The market can remain irrational longer than you can remain solvent.. Digiconomist notes this would make bitcoin the 59th biggest energy consumer if it were a country.. The sooner we debunk the myth and come to our senses, the richer our world will be. The NEW, BEST way to absorb all of this monetary wisdom is to subscribe to the newsletter and boot camp using the boxes to the right -> =. No guarantees that if bitcoin drops that it will ever come back. As the money supply increases, purchasing power is concentrated with the money creators at the expense of others holding the currency. Lastly, once KYC and AML is figured out, I have a hard time understanding why people would even want to use paper fiat instead of a digital fiat. FirstPrincipleThinking January 4, 2018, 9:20 am. We will have to see if that new blockchain style will win out. 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. If you dont have fiat money to buy the bitcoin then someone is going to have to start getting paid in btc. Mr. Money Mustache on Twitter: "I dunno man. If I add your state debt and unfunded liabilities, US is BANKRUPT! Cryptocurrency could be the proverbial cure for cancer, but if its made illegal or heavily regulated through prudent or reactionary legislation (YMMV) it doesnt really matter, does it? The thing that stopped me is that shorting it is a *pain in the ass*. The second point is also critical: Bitcoin is only valuable if it truly becomes a critical world currency. That is a fairly dumb sock puppet, since he never spoke about them. Looks like I made a big mistake then. November 20, 2018, 9:31 am, rollie fingers A timeline in yearsmy probability calculator says 99% or better that youll lose money, possibly all of it, if you hang on for years. Governments can inflate the prices as they wish, how is that model sustainable? A REAL currency must be low risk+ zero (better subzero) return+good liquidity, and all those three things MUST go together. The sensible-sounding ones will say, Sure the G20 nations all have stable financial systems, but Bitcoin is a lifesaver in places like Venezuela where the government can vaporize your wealth when you sleep., The harder-core pundits say Even the US Federal Reserve is a bunch a CROOKS, stealing your money via INFLATION, and that nasty Fiat Currency they issue is nothing but TOILET PAPER!!. Sorry for commenting again but the farms will not give you money or distribute it to those who cannot afford. PS: Brent, you write that if earnings dont pan out, stock prices wont necessarily drop. Based on the completely over hyped behavior, Id guess its going the way of sixdegrees.com or maybe myspace if bitcoin speculators are lucky. Doubly so because it is now so broken by its development team that it is perhaps the only cryptocurrency that I know of that doesnt even work as currency. Im not advocating throwing all your money into crypto (I havent see anyone say that). 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