Because this whole blog is built around the idea that you should seek financial security not riches. Then you are in at twice the actual price of Bitcoin. Mr Money Mustache 26-02-2023 Hobbyen. A boy named Sue Of course, there is some price, far lower, where Bitcoin could be rationally priced. Fired & Free Gold is not an investment, but it is an excellent form of money. Even the USD was a deflationary currency till the 60s after which Nixon got it out of the gold standard. So you are further wagering that Bitcoin will literally supplant the USD as the world medium of financial exchange, and frankly, that is kinda bonkers. 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. 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. I think environmental impact is overstated since the major users arent using coal. Blog readers. January 3, 2018, 9:23 am. Bitcoin didnt fly off the charts until a couple of months ago, after (maybe) finding itself in the perfect storm to take a bubble to biblical proportions. 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. All true. I really would hope that MMM doesnt sell out like most social influencers but regardless not understanding the technology is no excuse for spreading fear, uncertainty and doubt about it. 3 years and 1 week later. Market prices are not set by consensus. I read an interesting article regarding the price fluctuations, but I cant find it now. They will have to learn the hard way. Not everyone agrees, but it cannot, unlike cryptos, be regarded as stupid. You expect a currency that is controlled by individual owners can be reliably used across national boundaries? John Tucker These ideas are most problematic: MMM Says: Trust world governments to control fiat currencies. January 2, 2018, 7:03 pm. I feel anything worth putting money in should, in broad over-simplified terms at least, be comprehensible even to a simpleton like me. Things arent as crazy as 2000, but this is the 2nd highest peak of all time. November 20, 2018, 9:31 am, rollie fingers These are all things that people have bought in the past, and driven to completely irrational prices, not because they did anything useful or produced any money and value to society, but solely because they thought they would be able to sell them to someone else for more in the future. But it is a valuation technique that goes back practically as long as there have been stock markets.). January 2, 2018, 6:04 pm. This is yet another extreme example. Now, with that moral sermon out of the way, we might as well talk about why Bitcoin has become such a big thing, so we can separate the usefulness of the underlying technology called Blockchain, from the mania about how people have turned Bitcoin it into a big dumb lottery. January 2, 2018, 6:23 pm. Cest la vie. Regular money has nothing behind it either. So when I invest in bitcoin, Im not betting that itll replace dollars anytime soon. MentalArson The truly irrational. Now they trust the mathematics, and the lack of centralized human control. I have seen several bubbles grow and then burst, and one thing you learn is that an actual bubble rises like crazy and then totally pops. ie beauty counter for nerds. January 3, 2018, 12:55 pm. Holy Shit! is the only reasonable reaction. This means that the long-term value of Bitcoin comes down to its value as a commodity. I believe the current Cryptocurrency investment mania is a huge waste of human energy, and our rate of waste has been growing exponentially. They were literally carting around wheelbarrows full of the note because the hyperinflation the government produced killed the currency. So a volunteer based system wouldnt be secure enough to be considered immutable for data of high value. LennStar Your risk is your own, but understand that bitcoin is gambling. They are speculating like crazy which has lead the government to try and protect their people through the regulation of crypto trading. Nathanael Shit. It will be difficult to predict what comes in this rapidly evolving space. Im interested to see how this plays out. I think I found the mistake in your reasoning. Problems that dont bother your average North American, but could be very valuable to many people the world over. I know a lot of people in the DOTCOM bubble in the 2000s that were too focused on maximizing profits and lost most of their wealth on paper after the tech crash. Lets get this straight: in order for Bitcoin to be a real currency, it needs several things: Bitcoin has none of these things, and even safely storing it is difficult (see Mt. Jay Holden They have been making a killing. Just think never having to get ripped off for currency exchange10 years from now. Secrecy and hoarding will grow exponentially and the wealth gap will become staggeringly wide. Its totally different when you lose your money by yourself. 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. This way, whichever direction GBTC goes, you wont be in a regretful situation. I totally agree that Cryptocurrency is not a long term investment strategy, diversifying is absolutely key. How many do you need? I wonder why. Or? Is it possible youre confusing the message of this article? Transactions takes as long as for banks (and soon banks will do trasnfers in seconds too, the real life tests have already started) and cost MORE. But its not some spectacular Instant Trillionaire piece of magic. If you read your history on this subject you would understand why I dont. Here's the one I like: 25x the annual amount you spend/4% of your assets. Bitcoin and other Cryptos are attractive for that reason and that why people spread this misinformation about it to sway people from backing it. by jlcollinsnh 18 Comments. Lets be frank. As a result, I have cashed out on their misfortune. I am not trying to be friends with anyone here, but only debating an one sided article that seems to be trashing something that is unique and precious according to me. Right now, I think that this space allows people to be their own VC. I suspect it will have uses beyond public currency. Michael You clearly have a contrarian opinion here. I am beginning to get it Mattheus. Also, saying Blockchain Yes and Bitcoin No is tantamount to saying, Social Media is great but Facebook is not so great, or Internet Search is Great but Google is not Great!!! More computing power leads to higher data integrity which creates more value which attracts more computing power, and so on. Or grid power in general. I think in five years bitcoin will pretty much disappear. How much are these companies worth today? Youve made a great profit, and you can play with that $28k. For this article, I have set the bar much lower to show you the religious conviction that crypto speculators have. That means over the next 2 years, the Shiller P/E will be rolling out some of the terrible earnings numbers from the global financial crisis. (Aside from the threats of force that stem from legal tender laws.). The underlying value of stocks are tangible assets and value added production activities. Aside from what it can do, cryptocurrency guarantees an economy with very different fundamentals than government-issued currency because 1) its supply is finite and 2) no central authority controls distribution of new supply. How many here have switched from Mortgage Fast Pay to Money Market? I find that they either admit that the herd behavior is ridiculous, or they skirt around that topic, citing the returns as being a good thing. But yes, I would not invest in crypto currency. I dont know, why gold and not platinum or palladium? Regulation by SECI doubt theres any way to know the innovation that has been stifled, the small companies which never existed, the middle class growing local investment missed, because theres no cheap seat at the table. Problem I have with this article is the blatant statement that Bitcoin is Stupid! All points noted. More than triple the speed of Visa/MC. What are you doing arguing with strangers on the Internet then, my friend? I invested and I am sitting pretty with my finances, where are you my friend? They said they are going to ban it, but there was such public outcry the government just backed off and now says they are still discussing the matter! Holding gold is not an investment in this case, it is a hedge. Think about how many leaps needed to be made for someone in 1990 to believe such a thing was possible. However about 6 months ago, I withdrew all my stocks and threw it in altcoins. Not only stocks, but real estate and bonds are expensive as well. We live in a world where both can, do and will exist. And now in 2017, we sit and discuss how much better a world we have after the whole event. Publicly verifiable voting as well, when the chains are worth trillions. pre-construction Toronto condos will generate cashflow as soon as construction has been completed, If bitcoin is a bubble, should we short it? I dont know that page very good, but I think that answers this question ;). Its not as simple as you make it personally. An Aside: Why should we listen to you, Mustache? 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. He appeared on the Kevin Rose podcast as well. Its inevitable as brick and mortar banks and finance will become extinct! Gold is relatively inert (wont rust except for very tiny amounts of oxydation), it is relatively easy to verify its authenticity (its malleable, the good ol biting the coin to see if it dents, you can melt it to look for impurities as well as hard to fake the colour with lead based forgeries). I do believe blockchain technology and people like Charles Hoskinson and ADA are interested in uses beyond money grabs. A network like bitcoin that possesses millons of users and consists of billions of dollars of wealth means that in times of crisis around the world, the network itself can provide relief to anyone without discrimination. Market timing is a fools errand anyway. Its definitely useful for me to hear opposing views though and Im hungry for intelligent people to discuss it. We will have to see if that new blockchain style will win out. I think the far greater chance is your comment will be the joke. College, Medical, Cars, houses, Child Care, Stocks, Bitcoin, hell even dining out is all overinflated. Personally i feel that the USD is rapidly approaching hyperinflation. 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. Does that mean investing in Berkshire Hathaway is speculating? 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 -> Warren Buffet says dont invest in what you dont understand, and I dont understand Bitcoin. Ive been trying to think of an entrepreneurial way to capitalize on the hysteria without investing in it. Couldnt have said it any better myself. Every day when I go online, Ill see updates, news or discussion about Bitcoin and the craze it has created whether its on YouTube, blogs, or mainstream news. Thats cool. It has been made ground up to be censorship resistant and has been thriving for past 8 years despite singular opposition from every quarter. The fact that Mr Money Mustache, one of THE most influential FIRE movement supporters, has made a post on itseeing how many financially illiterate people are out there is mind boggling. I am already looking forward to looking back and laughing at all the companies who did away with their normal businesses to become mining companies. You disagree. This leviathan now stands at around $233 trillion, or 318 percent of global GDP. Have you ever taken a look at how correlated the stocks of an index were? Ask me Anything! Most MMM readers recognize that there is a serious flaw within the system which is why most of us just reject it. Good comments Jon. The bubble crashed and the internet didnt die. The Ramsey Show. that would be a PE ratio of 1. You gotta have it. I use purse.io to buy stuff from Amazon. While were on the topic of bubbles, it seems the truly gigantic bubble in the world isnt bitcoin, but rather the global debt market. Exchanges get hacked or hacked (where the operators secretly run off with the coins) all the time. January 3, 2018, 7:32 am. Maybe then it will go away. So you did. ), but not because they did anything useful or produced any money and value to society,. I own my currency as it is today (EUR and USD), how come you do not own yours? Anyone whos ever had to wire money between banks will appreciate the quick transaction times and low (or zero) fees of these coins. When the internet / electric / grid is down, I cant pay him via my iphone and at the moment, the kid wants cash. 15 Replies 10705 Views March 26, 2020, 05:23:27 PM . :). Probably because it was the first and still the largest blockchain based tech, a lot of capital has gone into Bitcoin mining equipment. This separation is important becausethe usefulness of Blockchain is the primary justification people use for the big dumb Bitcoin lottery. Change the company name to include the word blockchain, and explain that youre pivoting from [USEFUL_WIDGET] to exploration of and investment in opportunities that leverage the benefits of blockchain technology. They only speculate that others may want them in the future. Thats cool. Any efficiency brought to commerce through blockchain technology are very likely to show up as increased dividends from index funds. I have stocks I purchased at the peak and stocks I purchased at the bottom of the valleys. When everyone is on the train and praising it like it is the next coming of Jesus or whatever? There you go. Everything youve said makes sense. EvoInvestor Brent Weaver This MMM article seems almost contradictory to what has become an investment philosophy that reciprocates with many people. Yes. Bitcoin is mined using ASICs, not nVidias graphics cards. Mining is only one arm of this whole thing and CANNOT hijack Bitcoins, and that is also why the Bitcoin community refuses to increase block size randomly like Bitcoin Cash, to give the miners any more importance than they deserve. Danny Livewire By exchanging dollars or euros for a fee? The ones who own the farms you mean? Satoshi, the founder, sits on 10% but he has never spent a single cent. Its also dispatchable, which means the generator power output be turned on and off extremely rapidly to meet need. I dare you to look it up! Well said, Bill. "Find a graph that includes [the. Im not saying to build a bunker or anything but just diversify your portfolio for different economic times. I dont know how many of you can even get to understand what this is but hopefully you understand something from the URL I share below of how mining is done, and why this is not some idiotic electricity consuming joke! If you think that irrational bubble valuations in stocks arent possible, then you just havent studied stocks long or hard enough to be investing in them. Nixon just took away the last vestiges of the gold standard. I linked to Aswath Damodarans video on my Bitcoin post also. Mr. Butler January 3, 2018, 5:30 pm. For gamblers Bitcoin might make a good short but Im definitely too much of a wimp to try it. For newer cryptocurrencies, there may be a higher dollars-per-kilowatt-hour return, but I dont know these numbers myself. 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. Sorry*blockchain* may be worthy of accoladesNOT bitcoin. That money would now be long gone as uses of the underlying technology was developed and refined. Only speculate that others may want them in the future mania is bubble... 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As crazy as 2000, but i cant find it now just think having! Never having mr money mustache bitcoin get ripped off for currency exchange10 years from now by dollars. Post also you read your history on this subject you would understand why i dont know These numbers.. Fired & Free gold is not an investment, but i cant it... Production activities Cryptocurrency is not an investment, mr money mustache bitcoin i cant find it now Charles and!

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