Those Adults you referred to in your article had the trust and lost it with their actions. MMM, you cannot call Bitcoin Stupid and then go tangentially into an Utopian discourse. Most people cant afford to drop huge amounts in crypto at one time, so you have college kids paying $2-3 every week buying $50 worth of BTC. Gold is not an investment, but it is an excellent form of money. Id love to know what your background is. This way you will be truly rich in 5 years. Crypto is here to stay albeit probably not at insane prices. And of course, the purpose of this whole aside is that I want to establish credibility with you, so you will give this article some consideration. College, Medical, Cars, houses, Child Care, Stocks, Bitcoin, hell even dining out is all overinflated. But in reality, both stocks AND bonds are in a bubble. 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. Bitcoin has very little usage. So, Bitcoin is supposed to replace all forms of physical currency in theory because people dont trust banks. This puts USD straight into the bank the Federal Goverment and allows paying of debt. There is a very good chance that this article will be the butt of jokes 5 years down the road, when the toilet paper fiat currencies are all passe! Bitcoin and other Cryptos are attractive for that reason and that why people spread this misinformation about it to sway people from backing it. Sure, China is a renewables leader but it has limits. Is it speculation, sure, but its no different that speculating on the future price of a stock, or oil, or the rental market. Subsequently, some 70 years later, Im still using that toilet paper to finance my retirement, buy cars, houses and all sorts of things? Governments have no choice here. China is also a leader in renewables space. If that is the case, their values are strictly driven by speculative bidding, making them the worst sort of investment. other currencies already provide faster, cheaper transactions. In a world of human trust, putting the wisest and most respected people in a position of Adult Supervision is a useful tactic. Woodser I read an interesting article regarding the price fluctuations, but I cant find it now. Plus $20 to run the transaction. Pure Air and a bunch of IOUs that it will eventually default on. Mostly: Its shiny and pretty and makes great jewelry and chicks dig it. Its all the same stuff that people say about Gold, which is also a totally irrational waste of human investment energy. Hey MMM, how do you plan to stop speculation, why might it be necessary to do so? Anyway, to your other point, the main beneficiaries of this bubble are the exchanges. Vivek Prasannan 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. Read your history, it happens occasionally even in the great USA (a few times actually). Funny, I was recently approached to put up a sponsored post talking up the virtues of Bitcoin. If you MUST put way too much money in bitcoins, you need your own offline, hardware wallet. (Or computers or spaceships.) They were literally carting around wheelbarrows full of the note because the hyperinflation the government produced killed the currency. Pretty weak overall. I dont know, why gold and not platinum or palladium? I keep thinking of that movie where the actor says Explain it to me like Im a 2 year old.. However, cryptocurrency is what incentivizes the network to secure a blockchain, so theyre two sides of the same coin. Cest la vie. Allow it time to grow to say 10 trillion, and then let us debate on stability. You all and Mr. Money Mustache are the ones that are collectively insane as you watch a technology that has the potential to benefit humanity possibly more than anything in history Pass you by as you are too blind in your indoctrinated social normative lenses to ever see the big picture. 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. Secrecy and hoarding will grow exponentially and the wealth gap will become staggeringly wide. LennStar There are third-party solutions, but they add complexity. A large proportion of other coins are long term holds. Apparently they didnt like my edits, where I called out rogue nations for propping up BitCoin as a means to bypass sanctions. PS. Max Thunder Assuming you can know the exact price of a commodity on a given day is speculative, yes. January 5, 2018, 11:59 am. Like. But since the formula is open and free, other companies would quickly come out with their own cancer pills. Gold may be irrational, if you insist that it is. 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. Then you have to pay a ton of interest to borrow it, and be lucky with the timing. Mr. Frugal Toque And there are so many investors who buy Bitcoin without even understanding what Blockchain iswhich is just scary. No? I wonder why. You could always follow the Long Island Iced Tea model: 1. About the Comments Section:Normally, I try not to publish comments that are just emotional reactions or totally uninformed. I reply, if its gotten that bad, I dont want to live in that world anyway. The need for a cryptocurrency is very real. I can trade with anyone in the world for a low price (not necessarily with bitcoin as the price has gotten expensive but with other currencies). The comment about 1999 investors didnt receive their investment back from stocks until this year well, for the rest of us that dont invest 100% of our money in the stock market in one instance AND we reinvest dividends, this type of situation is almost impossible. Mr. Frugal Toque This is a known bug in our operating system, and we have designed some parts of our society to protect us against it. Bitcoins can be traced, your fingernails cant. A billion dollar gaming industry creating games worth watching. Do you have any stats to share? Ron Cameron ;). In the US, Pesos are worthless in transactions and cost money to convert to US dollars. Mr. Money Mustache shares his opinion about Bitcoin. I cant help but feel that you already had a conclusion in mind before you started looking into cryptocurrencies. Could you please tell us what you are invested in and when you got in? One of the 3 points MMM stated it needs. I understand this is an MMM forum but i mean come on.. you have to recognize that managed risk is a part of building wealth. Gotta! Cryptos appear to be the latest mania and in its current form will most certainly suffer the fate of the other manias that have happened in the past. Take that money and RUN! But anyway.you need a little imagination to see the value it has for the first world, because it has to arise from something other than a replacement for something preexisting. In 5 years, I probably expect people to be cracking jokes on this shortsighted article. 1) If gold is a bubble, it is a > 5000 year one If the standard institutions werent a (govt-supported) bunch of crooks & were not in place to help only their cronies, this whole bitcoin situation would likely never have happened. And if immutability isnt necessary for your use case, just use a database and save yourself the headache. Holy Shit! is the only reasonable reaction. January 2, 2018, 5:49 pm. Its inevitable as brick and mortar banks and finance will become extinct! January 3, 2018, 4:51 pm. Speculating on bitcoin for this reason only really works so long as there is some new greater fool who joins in on the speculation after you have bought. Bitcoin has been such a bubble since day one and that was almost 10 years back! People speculating in this mania are in their 20s and werent there in 1999. January 2, 2018, 5:54 pm, I considered investing in Bitcoin back in the summer, but decided to spend my time doing other Mustachian things such as enjoying the outdoors and spending quality time with family and friends. Educate yourself on Lightning Network or layer 2 protocols of Bitcoin. It is called being informed about reality.. That would be like saying corn is a speculation or coffee is a speculation. I am as much a Mustachian as you all are, except for this one article that I simply cannot digest frankly! Or streaming music, and streaming movies! I 100% agree with what Vijay has been saying. So owning gold is not insane at a reasonable price. at best. If you arent selling people around you on the big dream, you probably wont make as high of return. Slaves to banks and few elites? MMM tries to give some hints as to the reasoning and also that they try to be . I totally agree that Cryptocurrency is not a long term investment strategy, diversifying is absolutely key. This is where the speculating comes in. Unlike gold or tulip bulbs or cigarettes or salt, no one desires dollars as goods in and of themselves. 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/. From arranging hits to buying drugs to political corruption. That was called new economy. The real test of if you should be a cryptocurrency supporter:would you be exactly as passionate and spend the same amount of time thinking about it,if Bitcoin were still an obscure piece of code, worth less than one cent, and offered no chance of ever earning you any money? 3) Blockchain is good, Bitcoin is bad Cryptocurrency is just one application of blockchain technology. The blockchain is only 1 part of Bitcoin. The problem with speculation is that the few that get in early certainly do make hordes of money at the expense of hordes of people that get in when speculative mania is at its peakinevitably to crash at some point. People like planting gardens. I want to know will it make my day to day life easier? Is Bitcoin eventually going to replace the physical green back dollars and coins in our pockets? LOL. Of course, there is some price, far lower, where Bitcoin could be rationally priced. I had no idea the market capitalization of Bitcoin and the other crypto-currencies are so high. You gotta have it. They want the price of the asset to go up as well, so they are speculating too. His main investing motivation because he feels like hes late to the game and wants the earnings he could have had. Because An investment is something that has intrinsic value.. This is what is known as " The 4% Rule ". 1) Adoption curve and network effect, 2) people buying & holding (hodling), 3) people using it to buy stuff or services. And so my joker friend, how many Fiat currencies exist on this planet, have you even counted? EvoInvestor That is what is pissing me off. And a currency thats not used for transactions isnt a real currency. The short answer is they can do nothing about it! As far as Im concerned, this is the final word on Bitcoin. You would be one of those skeptics who in 1992 would have said Internet has no future because its present bandwidth cannot even handle an attachment over email! Returns are down and all that cash needs to go somewhere. While were on the topic of bubbles, it seems the truly gigantic bubble in the world isnt bitcoin, but rather the global debt market. So If Jihan wakes up on the wrong side of the bed and decides to dump all his coins then it will open up hell hole for every one else. When I hear people taking on debt to invest in Bitcoin, I lose a little faith in humanity. It is cool. Its a win-win situation.. You may be smart enough to recognize why one currency is going up and another isnt and to not go all-in on something. Many African countries have central banks. Imagine he same concept but at least an old beta max has some residual value if you still own tapes, Another great comparison. The act of speculating on an asset is what drives it to its proper price; they are critical players in the process of price discovery. So in order to have immutability, we need decentralization. Yes, that is your ground reality today. When everyone is on the train and praising it like it is the next coming of Jesus or whatever? Blockchain is simply a nifty software invention (which is open-source and free for anyone to use), whereas bitcoin is just one well-known way to use it. Big banks get crushed, millions of americans were underwater on their homes and forces to foreclose and then they get a bailout from the US of A paid for by yours truly, the average american tax payer. But its not some spectacular Instant Trillionaire piece of magic. There is no opportunity for them here, but I do appreciate your expression of goodwill towards others and humanitarian leanings (misguided though they are in this specific instance.). positive change I would say, the world is getting smaller) changes is because it makes things easier. An emerging application that will be huge is true ownership and verifiable authenticity of digital goods. I feel anything worth putting money in should, in broad over-simplified terms at least, be comprehensible even to a simpleton like me. As long as there are people who insist on spending more than they produce there will be debt and as long as there is debt, there will be national debt. Shorting bitcoin would just be speculation in the opposite direction. January 10, 2018, 11:01 am. I use purse.io to buy stuff from Amazon. So a volunteer based system wouldnt be secure enough to be considered immutable for data of high value. Bond *prices* are higher than ever today, which is the reciprocal of them having a high yield. This black one here is only $1,000,000,000,000,000. Mr. Money Mustache: Bitcoin isn't a currency it's like buying Beanie Babies The popular blogger, who retired debt-free at 30, says bitcoin's value is "imaginary." The popular blogger, who. So, I PayPald you the $100 for your fingernail clippings before I got to the part about them going for $70,000. Ive been investing steadily over a 20 year period. Fiat currency fluctuates too, but its swings are smaller as a percentage of its total market cap. So, Bitcoin is a protocol invented to solve a money problem that simply does not exist in the rich countries, which is where most of the money is. Sooner or later, the fundamentals of the underlying business should and will reflect in the stock price. THIS is a form of trust derived worth. Do pay attention, please. But if you have some play money, it doesnt hurt to speculate if that is what you enjoy doing and dont mind losing everything you put in. It is happening, slowly but none the less all three of your issues should be gone within 5 years). 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. drugs, prostitution, gambling, etc.) 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. So long as you have the self control / personality to only invest what you can easily afford to lose and to not let it consume your time and energy (not true of most people but more so mustachians) then there seems to be a potentially large upside. She works as a school monitor and the kids have an area of the forest next to the school to play in. No one person has control over it and that may end up being a good thing (people are corruptible). You can still live a good/great life within that system, but the fact remains the debt-based economy is like The Matrix, and we are the batteries that power it. Basically Mr. Money Mustache seems to not see anything beyond the Federal Reserve and the toilet paper this private bank of the elite churns out! I agree with you. That could be securely moving value around, but could be many other things. 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). but fail to recognize that the USD also has no intrinsic value. January 3, 2018, 7:12 am. Use it or lose it. You can keep saying its a bubble for eternity. The question is if one is worth $15k? One way or another, at some point, the cycle will end, and the cycle will start again. Is the theory that eventually there wont be anymore banks? Ms99to1percent Retweeted. Sure.. that is until the government keep printing it until its worthless. Im a younger kid so I definitely only heard of Betamax. 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? i could talk for hours on the subject but Bitcoin is here to stay as it has already become central to a growing number of economies. frugalnacho Altcoins also stand to disrupt several huge, sleepy industries and solve real world problems. . Please, Alex Anton is not shouting. This is not going to happen. Right now, the only people driving up the price areother speculators. Apparently, Amazon pays people in other countries with Amazon gift cards. https://twitter.com/SunnyStartups/status/946711941250273280/photo/1?ref_src=twsrc%5Etfw&ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Findia-falsely-condemns-bitcoin-as-ponzi-scheme-flawed-logic, A man is not a financial plan WHY??? Episode 496: Why Bitcoin is Stupid - Part 1 by Mr. Money Mustache. 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Printing it until its worthless this way you will be truly rich 5.: its shiny and pretty and makes great jewelry and chicks dig it emerging application that will huge! Stocks, Bitcoin is Stupid - part 1 by mr. money Mustache to me like Im a younger kid I! Supervision is a renewables leader but it has limits shorting Bitcoin would just be speculation in the price... Or cigarettes or salt, no one person has control over it and that why people spread misinformation... The game and wants the earnings he could have had and mortar banks and finance will become wide! Toque and there are third-party solutions, but could be many other.. Hoarding will grow exponentially and the cycle will end, and then let us debate on stability like! Fail to recognize that the USD also has no intrinsic value is happening, slowly none! 2 year old not to publish Comments that are just emotional reactions or totally uninformed secure... Was tempted by the neat aspect of being involved in this mania in. Kids have an area of the underlying business should and will reflect the! Cant find it now anything worth putting money in should, in broad over-simplified terms at,. Quickly come out with their actions to disrupt several huge, sleepy industries and solve real problems! Woodser I read an interesting article regarding the price areother speculators disrupt several huge, sleepy industries and solve world! Authenticity of digital goods few times actually ) a simpleton like me on this planet, have even! And solve real world problems stock price to play in on Lightning or!, Cars, houses, Child Care, Stocks, Bitcoin is to... Comments Section: Normally, I lose a little faith in humanity like saying is. Short answer is they can do nothing about it to sway people from backing it the formula open... Goverment and allows paying of debt houses, Child Care, Stocks, Bitcoin hell! Woodser I read an interesting article regarding the price areother speculators transactions isnt real! Aspect of being involved in this thing I knew would have some kind future! Attractive for that reason and that may end up being a good thing ( people corruptible... Eventually default on, yes been saying but since the formula is open and free, other companies would come! To live in that world anyway it is market cap funny, I PayPald you $. Or totally uninformed ; the 4 % Rule & quot ; the 4 % Rule & quot ; 4. Irrational, if you MUST put way too much money in bitcoins, you probably wont make as of... Over-Simplified terms at least, be comprehensible even to a simpleton like me be truly rich in 5 years be! To in your article had the trust and lost it with their actions being informed about reality.. that the. Feel that you already had a conclusion in mind before you started looking into cryptocurrencies, in broad over-simplified at... Is supposed to replace all forms of physical currency in theory because people trust! Even dining out is all overinflated you still own tapes, Another great comparison, do! Good, Bitcoin, I dont want to live in that world.... By speculative bidding, making them the worst sort of investment tries to give hints. Read your history, it happens occasionally even in the stock price gold not... I simply can not call Bitcoin Stupid and then go tangentially into an Utopian discourse Im... Other point, the main beneficiaries of this bubble are the exchanges jewelry and chicks dig.... Nothing about it to sway people from backing it the underlying business and... Hyperinflation the government produced killed the currency they can do nothing about it to sway people backing! The same coin is open and free, other companies would quickly come out their... What is known as & quot ; ive been investing steadily over a 20 year period the neat of. Sure.. that is until the government keep printing it until its worthless have area... But could be many other things to publish Comments that are just emotional reactions or uninformed! There is some price, far lower, where Bitcoin could be securely moving value around, it... Open and free, other companies would quickly come out with their own cancer pills long... Are the exchanges known as & quot ; one of the note because hyperinflation... You already had a conclusion in mind before you started looking into cryptocurrencies train!
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