I could only shake my head. If they had money in gold they could have mitigated some of the affects of the politicians and bureaucrats in those countries (and the IMF). However, governments and institutions are investigating the uses of some platforms, like Ethereum: https://globalnews.ca/news/3977745/ethereum-blockchain-canada-nrc/. Reward for Risk is worse for Powerball. The happiness of society is made of the happiness of individuals and nothing else. Hi Financialindependence.. When everyone is on the train and praising it like it is the next coming of Jesus or whatever? Ill go with Ponzi Scheme. 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? Do you also believe that you have a prayer of creating an internationally recognized currency that simply skips out on national and international financial accounting laws? The bubble crashed and the internet didnt die. They cant use these gift cards. Or streaming music, and streaming movies! Warren Buffett explained the difference between investing in Bitcoin versus in Coca-Cola was what cemented it for me. 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. The truly irrational. November 20, 2018, 9:31 am, rollie fingers It is an innovation worthy of a Nobel that is being trashed by MMM and his horde of supporters who have no clue how the Internet of Money is going to replace everything we know about Banking and Finance! Use the blockchain to store the state of running programs and you can create publicly verifiable and trustworthy (because they require none as they operate publicly and transparently) applications that can interact with money. Its mind-boggling how much electricity is being wasted. Exchanges and funds get looted (or looted by the operators) all the time. Google, Amazon and Facebook came out of it. January 3, 2018, 7:13 am. Its super risky and probably not compatible with mustachianism, but that said its pretty interesting and I think it remains possible that MMM is wrong. Something a step up from bitcoin t-shirts but nothing too risky. Its like trying to say Bank A is better then Z Bank because it has a fancy new way of getting money. Market timing is a fools errand anyway. You keep spouting off nonsense. Also, what is the source of that study? I have done this, and Bitcoin has a carbon footprint which is about 500-30,000 times larger than the US dollar. It all depends on how much personal enjoyment they get compared to the cost to own them. People want Bitcoin to grow exponentially and be stable at the same time! Bitcoin has a deflationary nature, its only logical to pay you in $100 non-bitcoin bucks that are racing with the inflation rate of the Feds printing machine instead. Some more attractive or reliable bulbs might even reasonably cost more. If you're like most Americans, you're a few . I know, when you received hundreds of emails eventually you just have to buckle and say, Okay, damn it I will write it up. Naturally with higher growth comes the risks which you should be ready to deal with. And nothing that can go on forever, does. It stays below the prior high for decade at least, sometimes forever. All technology goes through a bit of a curve where new technologies have multiple competitors and slowly they formulate around standards and a smaller core group of players. > . These ideas are most problematic: MMM Says: Trust world governments to control fiat currencies. January 3, 2018, 12:48 pm. December 10, 2018, 5:45 pm, Dang! Be careful what you wish for. (Again, you also cant go to space without it, or use your computer, but we can set that aside for the moment. This video epitomizes the Bitcoin market right now. Invest in anything wisely and safely. And like investing in anything, its not a matter of altruism if Im right about the continuity of value in blockchains as measured by the value of its underlying currency, Ill see a healthy return on my investment. Problem I have with this article is the blatant statement that Bitcoin is Stupid! January 3, 2018, 12:13 pm. Or when I have to go to the grocery store to buy milk and theres the sign that says NO POWER, CASH ONLY and my toddler is crying for milk, Im going to pay them in cash. 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! So I also read a lot about investment bubbles and fundamentals and how to tell those apart. However when every Joe on the street becomes an expert in an assetthen its suspect and you dont need to be clairvoyant to know that this will not end well. Is the logical conclusion to short a mania or stay on the sidelines? Episode 497: Why Bitcoin is Stupid - 2 by Mr. Money Mustache. I totally agree. As a result, changes in perceived value result in big price swings. WantNotToWantNot It can be entertaining, though, to sit there and watch people who just happen to have $7k in small bills on them feed it into the machine at 2 am. 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. 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.). They have been making a killing. Why not somebody else's fingernail clippings? The $16,728 Social Security bonus most retirees completely overlook. I was one of the first subscribers to this subreddit when it was invented. 3. Bitcoin mania isnt different from the dot.com mania or any other mania going back to the tulip mania. Congratulations, it sounds like you gambled and won. Hell if I believed that I would work my ass of taking EVERYTHING I could and putting it into cryptos! An emerging application that will be huge is true ownership and verifiable authenticity of digital goods. And if immutability isnt necessary for your use case, just use a database and save yourself the headache. Vivek Prasannan January 4, 2018, 2:35 pm. But a collective insanity has sprouted around the new field of cryptocurrencies, causing a totally irrational worldwide gold rush. January 3, 2018, 4:34 pm. And its back to 12.5K in two days. Therefor, John will go on believing strangers on YouTube over me so I will be there to pick up the pieces when the house of cards crumbles. The market can remain irrational longer than you can remain solvent, and maybe everyone that posts here about how wonderful Bitcoin is will be minted a Bitcoin millionaire and will lock in those profits can we remain sane and humble on the other side? Not the only reason, but if earnings dont pan out, stock prices wont necessarily drop. That is where we are with Bitcoins. Think about how many leaps needed to be made for someone in 1990 to believe such a thing was possible. Why does bitcoin have to be the winner? Evan Drake Individuals getting rich off speculation doesnt mean its not speculation. Long time reader, first time commenter (ha). Is it likely worth closer to $0 than to $20,000? Its a win-win situation. November 20, 2018, 11:56 am. But, these days you shouldnt use resistance heaters except for the lightest heating loads, because they are obsolete. E.g. At the present time, stock index funds are priced more irrationally and speculatively high than gold is. It remains to be seen. The Money Mustache Community . Either one will get your CAPE ratio back into whack. It is cool. I did Control F, and verified that MMM never used the word Ponzi or Pyramid, and in fact Vijay, you were the first person to bring up the Ponzi Scheme topic, and then you linked some article (which I did not care to read). Retweet. On the other hand, some items such as historical art, with no intrinsic value other than emotional attachment, can be worth millions. Because I still cant pay for groceries in my town without swiping a card or handing over some US dollars. (see: Long Island Iced Tea Corp. becoming Long Blockchain Corp.). For one you keep bringing up this no intrinsic value point, which is common, but fail to recognize that the USD also has no intrinsic value. Given that he vouched for Blockchain, but not for the hype over Bitcoin itself, you seem to be overreacting. However, cryptocurrency is what incentivizes the network to secure a blockchain, so theyre two sides of the same coin. The root of crypto is decentralization and independence from government that empowers people. Ms. Frugal Asian Finance Yes, that is your ground reality today. But boy, are you wrong on this one. A boy named Sue (Serious question. 26 Replies 18313 Views March 27, 2020, 01:47:17 PM by talltexan: How do you press your kids to learn money habits? And just as a warning, I am always going to tell you that price speculation is a bad way to spend your life. Im fine with crypto but not as an investment. You may be smart enough to recognize why one currency is going up and another isnt and to not go all-in on something. Why should it not be? 0 transaction fees, infinite scalability, instant transaction times (2-10 seconds), and no mining (aka no ridiculous power consumption). Do you really think you own your Fiat paper? Im not saying to build a bunker or anything but just diversify your portfolio for different economic times. as well as all legal forms of private sales (ie. I dont know that page very good, but I think that answers this question ;). So Im going with no. Blockchain (you are the first person I read who thinks the jury is still out on blockchain (I agree)) takes more and more energy as it grows. I have accepted lifes nudge and opened up several pages of your blog and am working through them right after this, The Vigilante About purse.io: Do you have to pay the transaction fee to deposit the BTC to escrow? The national debt comes from fiscal irresponsibility from people, not a fiat currency. Some of them may be insane purchases at some prices and very sane purchases at other prices. I just hope my tax dollars arent used to bail these folks out. Same with internet search: remember AltaVista, Lycos, Dogpile? Then you have to pay a ton of interest to borrow it, and be lucky with the timing. Ten years later and the price is still nowhere near that prior high, with it currently trading around $60. LennStar When someone has a 180 degree different opinion to you, just discredit them eh? If so, congratulations. 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. Bitcoin has very little potential for the long term. Anyway, if your argument were correctwhich it partially isthen you of all people should be against fiat money systems like the US dollar in its current form. Humans are conditioned for shortcuts in all aspects of life. In your example, the 1992 internet might be comparable to Blockchain time will ultimately tell. The EntreLeadership Podcast is a must-listen for any entrepreneur or business leader looking to take their business to the next level. For a shortcut to understanding good investing, you can also simply look up Warren Buffets thinking on almost any topic hes careful enough about offering opinions that by the time he makes a statement on something, you can be pretty sure it will be among the best answers out there. Pretty weak overall. I reply, if its gotten that bad, I dont want to live in that world anyway. Its not as simple as you make it personally. The car still has value to you, but my Ive lost nearly a quarter of my trade through no fault of my own. coinwarz.com keeps track of profitability, but it can rapidly swing with changes in coin price. Maybe you know about Mr. Money Mustache very well But do you know how old and tall is he and what is his net worth in 2023? So, please dont keep repeating this Blockchain is great but bitcoin is not bullshit! I own my currency as it is today (EUR and USD), how come you do not own yours? This MMM article seems almost contradictory to what has become an investment philosophy that reciprocates with many people. If you think its a great investment, go ahead and buy some / a lot we are not stopping you. I dont know if stock prices will go down. Thanks for sharing your opinion! Even though it really is nothing but cyber reality. Devs in their mid 20s who owe the IRS 50k and lost most everything. In the US, Pesos are worthless in transactions and cost money to convert to US dollars. January 3, 2018, 9:23 am. Noticed this ad on the corner of a website recently because we ALL need daily updates on an obscure piece of niche software technology! It is too inefficient to scale to become a global currency, too volatile to be practical as a global currency, and there is a cap to how many bitcoins can be made therefore no reason to ever spend your bitcoin. I read through your article bordering on rant at many places and would suggest you to go through the following Mr. Money Mustache. It is a commodity. 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. Research Ethereum further. Why not one of the other 1500 cryptocurrencies? While it is true that stocks are probably expensive right now, one thing that doesnt get mentioned enough with Shiller P/E is the E represents the 10-year rolling average inflation-adjusted earnings. Because it is backed by an entity that will ensure its value is honored and, to at least a small degree, those that are responsible for it are also accountable to the citizens of the US. MMM has clearly thought about this more than most, however I think people would need to read more than this post to completely dismiss that a current crypto will have long term value. Until the price of bitcoin (any of the crypto currencies) achieves some semblance of stability, they will fail to be good mediums of exchange. The cryptocurrency is the glue that holds the system together. This has resulted in the Bitcoin blockchain ledger being nearly immutable. This article seems ranty/irrational. If so, this could negate the discount benefit for small purchases. And you dont want it for this purpose anyway after all, do you currentlyhide your money in offshore tax havens and transact your business on black markets? I agree w jon. At the moment, theyre incredibly volatile compared to the monetary systems of the developed world. > what is the fundamental reason that existing currencies have been driven up so high? Either way I dont think youve fully connected the dots as to why it has value. If your chosen currency doesnt win out it goes to 0 since if it has no users it has no value. Watch on. According to the index, the amount of energy consumed by mining bitcoin surged about 26 percent in November alone and now totals nearly 36 terawatt hours, enough energy to power about 3.3 million homes. 2 years later, and each coin is 28,736.04 or $39,388.47. Spot on VIJAY. Oh my gosh, get out! If history is any indication of the future, we can presume the government will print more USD to make up for lost revenue. I first thought about shorting it at $1000, and again at $10,000, so obviously I have no particular insight into timing. A whole Bitcoin? Now, lets see who is smiling? April 2, 2018, 7:38 am. Its not going to consume ALL the worlds energy? Research further. Except for ripple coin. Read your history, it happens occasionally. If you were setting up your portfolio from scratch today, would you buy $500K of GBTC with it? Speculation is great. January 15, 2018, 9:20 am. 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