If I exchange an ounce of gold for ten cords of cut wood, where is the bank?
I am well aware of the things your write. I am not an investing rookie. I have been pulling out money every day since last June. I pay my taxes every quarter. I am well beyond the point of getting all of my money back.
There are a lot of people who cannot see a disruptive technology, and how it might benefit them. I am not a shill for anyone. I would recommend most people not put money into this because it is a very different asset.
If it goes to zero, I’ll be out long before that. And I will be grateful to have gotten in early and used the benefits to pay off everything but my house. And that is coming.
An economy based off of nothing but barter is a fantasy. It can exist out of dire necessity but lugging gold around, not to mention firewood, is impractical so more practical proxies arise, for instance silver notes, then comes a desire to secure it from theft and fire, then interest, then loans. That isn’t going away.
The value of bitcoin such as it is, is in future applications of the transaction. The individual transactions being speculated upon at present have no value to anyone other than speculative, though.
If it goes to zero, I’ll be out long before that. And I will be grateful to have gotten in early and used the benefits to pay off everything but my house. And that is coming.
Bitcoins may go down but the probability it “goes to zero” is infinitesimal because weird as it seems, it is after all based on tangible (the amount of electricity and processing power to mine coins). For shrewd investor, your hit-or-miss instead of probability-based reasonning is surprising.
The only reason bitcoins would “go to zero” is a theorical flaw in the blockchain or a new algorithm to mine coins for nothing. I doubt anybody can say something definitive about that.