So right there you can scratch off any use of blockchain as pointless if it doesnt benefit from immutability. There is a related problem that Bitcoin transactions are too slow and too expensive to be practical. Ryan Thomas The poorest in Sub-Saharan Africa earns the same money that you sitting in Manhattan, NY do. Not going to do this with you.. Yes, this is a function. (As Ronnie Chieng says, What IS it!?!?). Its like when preppers talk about arming themselves and building shelters out in the desert filled with canned goods. https://www.amazon.com/giftcardscams/b?ie=UTF8&node=15435487011, Ryan Schaap And so my joker friend, how many Fiat currencies exist on this planet, have you even counted? While silver and copper has been used as a form of money (notably imperial China, it was a silver based society with gold used as a high currency), golds special attributes has always been seen as a form of value storage and trusted trade medium. It also has technological demand. Look up ethereum and Eos and read deeply on how fundamental this decentralised future beholds. Mr. Money Mustache talks about his divorce. As such, its an awful means of trade. January 3, 2018, 5:48 am. A prescient article, but unfortunately, those of us that have investigated Bitcoin and come to the same conclusions(no interest in speculation, possibly completely value-less) must continue to put up with the Bitcoin bulls, and as seen in this comment section, they are extremely bullish. What if you want it for yourself, or have customers or distributors that do? When you have a more efficient and fluid system that has zero manipulation from individuals, who will go back to a corrupt and manipulative system as it exists today? January 3, 2018, 12:48 pm. If you think its a great investment, go ahead and buy some / a lot we are not stopping you. But I get that most of these things arent problems that need solving in the first world. That is when we are talking equality and progress for all! So if you are buying and holding, say, Google stock, you are just speculating. January 3, 2018, 9:23 am. Anytime someone says they are investing in Bitcoin, I have to laugh. For me, its just like watching a show that I dont know the ending of yet. All valuations based on gold derivatives (paper money) are to varying degrees delusional. In this way, dollars are the ultimate speculation. (like ATMs were supposed to replace Tellers years ago *eye roll*) And Bitcoin is replacing the banking system? Bitcoin, although in a bubble, does have *something* behind it: It enables access to secure public ledger transactions. The EntreLeadership Podcast is a must-listen for any entrepreneur or business leader looking to take their business to the next level. You cannot have blockchain without bitcoin. As of now, BTC has none of those characteristics. Bill Batchelor This is where the speculating comes in. MMM says: There is no intrinsic value in cryptocurrencies. I understand the concept of having an idea, building business around it with angel investors and later going public where you and I can invest but I dont understand investing in something like XRP. This will go down in history as the DUMBEST thing Mr. Money Mustache has ever written.it honestly pisses me off how dishonest he is and his he cant see the big picture out of his Statist status quo lenses. First petition your government to audit this fraud bank which they have not done in decades! All this bullshit about backed by faith and credit of my country goes out of the window when currencies die someday. in my opinion. Im only a mediocre computer scientist. Im more inclined to trust contracts that cannot be broken. if you over leverage yourself in any of these you can find yourself in trouble. 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. MissSaraBee Probably the same will happen again. I would say, Probably the same would not happen again. 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. Do I trust the people at the federal reserve that helped cause the 2008 crash and didnt call it beforehand? The rise in bitcoin represents people waking up to one delusion (false paper valuations) and unfortunately accepting another delusionthat digits are more valuable and trustworthy than paper. Exchanges get hacked or hacked (where the operators secretly run off with the coins) all the time. Great text. They know him as Mr. Money Mustache -- a gentleman who retired at the ripe age of 30 without a million-dollar salary. You basically have to first deposit a lot of money (as a reserve) onto bitcoin exchange sites, which themselves are only loosely regulated and would probably become insolvent if bitcoin crashed. This is the greatest use of human energy and capital the world has ever seen. In this video from Motley Fool Live, recorded on Feb. 23, Adeney joined. Simple answer is, they cannot have a secure private Blockchain. but fail to recognize that the USD also has no intrinsic value. Its a little like taking out the garbage. That is what people said 1999/2000 for the dotcom bubble. It makes you want to laugh and cry. 2 years later, and each coin is 28,736.04 or $39,388.47. 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. January 3, 2018, 1:43 pm, Apparently, Amazon pays people in other countries with Amazon gift cards. Last May, when I announced I had inked a deal with Harriman House to publish my new book, Pathfinders, I invited those of you who had embraced The Simple Path to Wealth to share your stories. This will be a fun article to read in 10 years. Facebook is probably the 4th or 5th legitimate social media platform. It seems to me that whats needed here on both sides is touch of humility. Justin C Even if Mining gets centralised, Bitcoins future cannot be dictated to by them! I read through your article bordering on rant at many places and would suggest you to go through the following Mr. Money Mustache. Blockchain may be the future, but that doesnt mean any of the current currencies will be worth anything. That is something very valuable just like stocks are. But with 6-7 big mining players who dictate which fork of bitcoin to mine, the value of BTC or BCC or Segwit or whatever else comes, I have no faith in the value of BTC. David Wendelken Youll note that without prejudice and emotion, he describes the actualuses of the technology, without getting intohow we should all place uninformed bets on its future value. 1. Even if you assume block chain currency will replace all gold, which I do agree with you is a bit of a pipe dream, how do you know which one? But at least 98% of MMM readers do not live in countries where this is an issue. Humans are conditioned for shortcuts in all aspects of life. Agree, the valuation of these cryptocurrencies are out of whack. This inefficient design is now wasting more electricity than many entire countries. They probably also didnt like my stated aversion to cyptocurrency and desire to stick with boring real estate. People will release new ones all the time and people invest in them, not because they will ever be useful but because they expect the price to skyrocket. Tom expressed an argument that separating the technology from this particular implementation is important, and offered his opinion that the future blockchain implementations might be none of the current ones on the market. https://www.nytimes.com/2017/02/19/arts/design/has-the-art-market-become-an-unwitting-partner-in-crime.html. 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. Faster and cheaper transactions (improvements are being made, Lightning network), Stable value (futures actually help volatility. Im not saying to build a bunker or anything but just diversify your portfolio for different economic times. Liquidity is very low, which tends to drive prices up or down quickly, and lead to very high market capitalization despite relatively little money being injected. Bitcoin is almost as irrational from current prices as are US stocks. It doesnt mean they are in bubbles at any price. Things arent as crazy as 2000, but this is the 2nd highest peak of all time. It's natural to just look at the price itself and how much it's . LennStar But boy, are you wrong on this one. In stating that humans have never had a chance to own their own money you have hit on the essential problem with bitcoin and any other monetary alternative. For a long answer you need to understand the technicalities of it which I am not going to educate you on! Any efficiency brought to commerce through blockchain technology are very likely to show up as increased dividends from index funds. January 4, 2018, 2:35 pm. You WILL be wrong. January 2, 2018, 7:09 pm. I could only shake my head. January 3, 2018, 7:12 am. It then proceeded to burst in spectacular fashion just ahead of the financial crisis, plunging all the way back to $30 before rebounding. Thats a really bad equivocation. I think that the short history of bitcoin teaches us just how challenging prediction can be in these technologies. If a good provides value to just one person without hurting anyone else, then it provides value to society. Liked. As the people in Greece and Iceland found out, along with people in many other countries. 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. The dams generate electricity whether you need it or not. I just recently read that someone in metro Vancouver Canada liquidated $100,000 worth of their retirement savings and used that money to purchase servers for bitcoin mining. I dont care either way about bitcoin and am not even sure why hydro comes into the discussion, but you cant say something so blatantly 180 degrees false and expect not to be corrected! Please dont fall for Hype, generally fed by the Banks and their Media! Do you practice illegal tax evasion as your primary wealth strategy? I dont know, why gold and not platinum or palladium? meep er But they dont have to go down for there to be a US stock market crash in real terms. :) If youd like a link, just holler! What, you think rich people dont argue with strangers on the internet? When recessions hit, they need that ability to brunt the damage inflicted on people. People like planting gardens. I am Mr. Money Mustache, mild mannered retired-at-30 software engineer who later became accidental leader of Ironic Cult of Mustachianism. Those who are in it are using it for speculative purposes, not as a currency. Not a repeatable strategy though, Im sure. But coincidentally, after I got my computer engineering degree I ended up specializing in security and encryption technologies for most of my career. You made an unsupported claim. 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. I agree with Tawcan. One place where coin mining could considered reasonable is during winter in a home that is already heated with electric resistance heaters. People are looking for something that is undervalued to put their money towards. So, I harvest other peoples speculation and I dont lose anything, as I have already harvested more than what I put in. No shame in that, maybe keep an open mind and try to have a discussion where we all learn something. . This is why bitcoin was created in the first place. This is really useful for me to hone my thinking about the topic. On the popular Coinbase it will cost you about 4% just to exchange USD for BTC. The timestamp on these comments is pretty helpful to see who was right! MMM says: Cryptocurrencies are useful for anonymity and evading the government which is bad because we need the governemnt and we need to trust each other. Anyway, in real terms, US stocks have been in a secular bear market since 1999. Retweeted. Sorry, PoF, Im staying away from your Bitcoins until I see a Tweet about the ones filled with chocolate. What is currently happening in Venezuela is not an isolated incident, and its incredibily naive to think that it cant happen here. In a sense one could swap bitcoin to USD and the article still stands. Even if you are the only one in the room willing to do it. And its back to 12.5K in two days. Some of my conversations with him inspired the research in this article. Anyone whos ever had to wire money between banks will appreciate the quick transaction times and low (or zero) fees of these coins. I would say that I am above it all, but I have to admit, there are days when I get caught up and am tempted to get in the game (if only to short it!). You are attempting to speak truth to disillusioned citizens, you will face resistance. It just means that some price levels are reasonable, and some are not. Pretty weak overall. While were on the topic of bubbles, it seems the truly gigantic bubble in the world isnt bitcoin, but rather the global debt market. I doubt you really believe this is going to overthrow all of our current financial system. Vijay, its okay. I like the way he analyzes investments. 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. Guess what, we can automate all of those jobs with cryptocurrencies. And regarding Bitcoin as currency, it is already not usable as that TODAY. Right now if bitcoin enjoys the lead, what is there to call it stupid. In the field of personal wealth, this means walking your children past the idling lineup of your neighbors Mercedes SUVs, over the snowy grass and up to the door of the school and being confident that you are doing the right thing. Long time reader, first time commenter (ha). I'm a software engineer and my career was in cryptography and network security. Not likely, bitcoin mining farms are in China because of the cheaper energy costs. January 2, 2018, 6:23 pm. January 3, 2018, 7:59 am. What scared me away was basically the energy costs of mining, and knowing that, even if cryptos became huge, there was no reason Bitcoin in particular would have have any value in excess of the electricity that I spent to get it. Why? The Bitcoin Faithful also mock me for considering all cryptocurrencies (current and future) as candidates for eventual dominance in transactions, rather than just assuming it would be BTC. The issue with the .com bubble was internet companies were given a high valuation with no demonstration that they were profitable or even provided a service/product. A real, usable currency CANNOT have such huge fluctuations. Id love to see MMM fingernail futures one day on my ticker chart. These are preposterous numbers. That's right -- it really does not matter (to me) why they split up. Do I still get the full bag or just a portion of your pinky fingers latest clipping? Its not an investment. To keep things non-promotional, please use a real name or nickname(not Blogger @ My Blog Name). There is no reliable way to track or trace paper. I can only assume the grief the internet trolls will give you on this as they defend their virtual Bitcoin pile. How much do you have invested in BTC? They split up you will face resistance me, its an awful means of trade regarding bitcoin as,. Take their business to the next level your article bordering on rant many... 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