Sep 01, · Bitcoin is a terrible store of value and an equally terrible long-term investment. And the more bitcoin becomes mainstream, the more the most powerful governments in Author: Wayne Duggan. Dec 21, · Foolish takeaway. Bitcoin has proven to be the runaway hit of the investing world in A volatile asset, it surged forth to record highs this year. If you can handle the volatility, then. Jan 15, · To answer why bitcoin has become so big, we need to separate the usefulness of the underlying technology called “blockchain” from the mania of people turning bitcoin .
Bitcoin foolish'Foolish': Crypto Fund CEO Warns Against Bitcoin Maximalism Narrative
Expecting that this will always be the case or that holding only BTC is the right move strikes me as foolish. Unlike the previous bull run in , alts have so far failed to rally, losing more and more value in BTC terms.
Against BTC, both are lower than ever. Well-known traders have thus gone on record in recent weeks to announce the death of the altcoin market, possibly for good. Among them was Peter Brandt, who likened the lifelessness of alt markets to the dot com boom of the early s. So BTC remains king, but discounting everything else is silly. What do you think about the Bitcoin vs. Let us know in the comments below!
Could you be next big winner? I consent to my submitted data being collected and stored. Treasury, looking to decrease the reporting requirements Belarus has become a hot ground of the great Bitcoin experiment as the country dwells into one of its most disturbing civil crisis. The correction appeared as a testament to profit-taking behavior All Rights Reserved.
I think we can all agree a cure for cancer is immensely valuable to society blockchain may or may not be, we still have to see , however, how much is a Cancer-Pill worth? Our banker goes on to explain that the first Cancer-Pill bitcoin might initially see some great sales.
Prices would rise, especially if supply was limited just as an artificial supply limit is built into the bitcoin algorithm. But since the formula is open and free, other companies quickly come out with their own cancer pills. Anybody can make a pill, and it costs only a few cents per dose. This screenshot from coinmarketcap. Bitcoin AKA Cancer-Pills 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.
To better understand this mania, we need to look at why bitcoin was invented in the first place. As the legend goes, in an anonymous developer published a white paper under the fake name Satoshi Nakamoto.
The author was evidently a software and math person. But the paper also has some in-built ideology: the assumption that giving national governments the ability to monitor flows of money in the financial system and use it as a form of law enforcement is wrong.
This financial libertarian streak is at the core of bitcoin. Government-issued currencies have value because they represent human trust and cooperation. There is no wealth and no trade without these two things, so you might as well go all in and trust people. Bitcoin has none of these things, and even safely storing it is difficult.
Bitcoin exchanges such as Mt Gox in Japan, Bitfinex and various other wallets and exchanges have been hacked. The second point is crucial. Bitcoin is only valuable if it truly becomes a critical world currency. Right now, speculators are the only people driving up the price. A speculative cult currency like bitcoin is only valuable when you cash it out to a real currency, like the US dollar, and use it to buy something useful like a nice house or a business.
When the supply of foolish speculators dries up the value evaporates — often very quickly. A currency should also not be artificially sparse. It needs to expand with the supply of goods and services in the world, otherwise we end up with deflation and hoarding.