Skip to comments.Bitcoin not built to last, despite recent surge
Posted on 07/01/2019 9:28:19 AM PDT by SeekAndFind
Last week we saw bitcoin, the great hope of cryptocurrency, skyrocket to over $13,000. It was in the vicinity of $3,200 as recently as December.
Why? Maybe it was Facebooks new venture into creating its own digital currency, Libra although, if that were to be successful, how it would offer any type of validation of bitcoin is beyond me, and a whole lot of smart people on Wall Street.
In fact, it might spell the beginning of the end for bitcoin. There are almost no major Wall Street investors of substance with meaningful track records who have invested in bitcoin.
To me, its fools gold. There are no financial statements, no balance sheets, no revenues or assets. Theres not even a physical product! This is unbridled lunacy in which some astute techies take advantage of what will ultimately be some very unfortunate people.
Real investors do meaningful, mundane, monotonous research in order to determine the viability of a companys stock or a countrys currency. To do research on bitcoin, what is it you should even look at? You cant even melt it down and use it for jewelry!
And whos there when things go wrong? The Treasury, the FDIC or the Fed? Nope. And things have gone wrong numerous times.
Plus, whats the advantage of using it, unless youre doing something illicit or illegal? Why not use PayPal, Apple Pay, Venmo or conventional debit or credit cards?
Facebooks Libra at least has the backing of Visa, Mastercard, PayPal and a few others, and the way its been initially described, there are accounts with assets or credit scores behind each transaction.
But even so, Libra seems a solution for which there is no problem although it will benefit Facebooks bottom line.
(Excerpt) Read more at nypost.com ...
Bitcoin is one of the few ways (if great, knowledgeable care is taken) that Chinese can now get money OUT of China and not affect their social score or otherwise have that act known to the Chinese authorities.
You need Bitcoin to pay ransom to hackers who lock down computer systems. The hackers always want to be paid in Bitcoin.
Fools and their money are soon parted.
Do any financial gurus have an investment opinion on both bitcoin and Facebook’s Libra launch?
I think it does have a utility, the same way tulip bulbs have utility. It’s just not an investment vehicle.
I do not at all see why an instantiation of blockchain technology (such as Bitcoin) can be any sort of "investment". It increases in value because ... Why?
Even gold doesn't really increase in value. Gold holds its value in the face of inflation. That is powerful. But gold doesn't truly increase in value the way a hot stock does (or like Bitcoin seems to).
The technology is interesting. But I see this as Tulips in terms of How-Can-I-Get-Rich-Quick?
I think it does have a utility, the same way tulip bulbs have utility. Its just not an investment vehicle.
Yes, not a reasonable investment, but an excellent way of moving wealth out of the sight of prying eyes.
“Do any financial gurus have an investment opinion on both bitcoin and Facebooks Libra launch?”
bitcoin is fundamentally a scam, has no intrinsic value, lacks almost all of the properties of a currency, and in terms of “investing”, it’s nothing more than a speculative vehicle ...
Warren Buffet regards cryptocurrencies as a racket.
That’s my thought, however I didn’t think the social media companies were worth a damn when they launched. The Libra launches early next year? I’d roll some FRNs if I had some sound advice.
Sounds like you’re describing every fiat currency ever devised.
It’s not currency. Governments have a monopoly on issuing currency. It’s a means of exchange based on an existing currency. As long as there are people who accept it, thinking that it confers value, bitcoin will appear to be doing well.
Well, at least with fiat currency you have the promise of a government backing it, so you can evaluate it based on the track record and policies of that government, and the stability and prosperity of the nation.
Can’t do that with bitcoin.
Bitcoin has two things going for it... 1. The belief of its participants 2. It isnt manipulated by any government
Why does it exist? Four little words -- "too big to fail".
“Bitcoin has two things going for it... 1. The belief of its participants 2. It isnt manipulated by any government”
Bitcoin has two things going for it... 1. The gullibility of its participants 2. It is manipulated by the originals.
I don't like Libra because it's tied to a manipulated fiat currency monopoly, it's owned/controlled by a mega corp., which is in the news for its attempts to manipulate public opinion and that of our elected "representatives", and so forth. That said, I'm considering XRP for its banking connections. I regret not investing in DASH.
Crypto is a phenomenal play for day-traders. This from someone who has also day-traded commodities and stocks. It's hard, stressful work, and I recommend going for the long haul with for those who are around the average age of those who are on FR. There are some great day-trading tools available for for those inclined to do so, however.
I recommend only investing what you can afford to lose and only what keeps it fun. If you find yourself stressing over the amount of money you have accumulated, take some off the table and put it into something else, which is what I do.
I keep it to the top ten cryptos, though I sometimes will buy a rising star, usually to get burned, except for bottom feeding on Bytecoin, which has done well for me.
As always, don't put all of your eggs in one basket and make sure all of the other essentials are covered first and good luck!
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