This is also wrong, Zimbabwe did not abolish taxation yet the worth of Zimbabwe dollar has vanished anyway. Simple answer is, they cannot have a secure private Blockchain. MMM calls Bitcoin Stupid and all these things as some kind of Ponzi Scheme! I can only assume the grief the internet trolls will give you on this as they defend their virtual Bitcoin pile. This is so weak. January 3, 2018, 12:48 pm. Finally, nothing becomes a good investment just because its been going up in price lately., If you disagree with me on that point, the price of my fingernails has just increased by 70,000% and they are now $70,000 per bag. This is no different from rich wall street people and government controlling fiat currency. Everything youve said makes sense. The Vigilante 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. Een of andere blog . For a long answer you need to understand the technicalities of it which I am not going to educate you on! > However EVERY SINGLE BITCOIN TRANSACTION IS PERMANENTLY RECORDED AND TRACEABLE. Personally, I am out of Bitcoin because it is no longer useful to me. January 15, 2018, 4:00 pm. Also appreciate fungibility. MMM, Internet has pretty much destroyed every industry it has pitted against. Even if youre the only one doing it. January 2, 2018, 6:46 pm. in my opinion. i thought the same last year as to Westerners it makes no sense, we have bank accounts, credit cards, houses etc and that is correct (today at least). Your question was answered. I noticed that you didnt deny that you are invested in Bitcoin. Mr. Money Mustache on Twitter: "I dunno man. obsolete. No doubt it will crash but I think it still has room to go. January 3, 2018, 12:15 pm. February 19, 2018, 7:36 am. I just wish it had come out before the holidays so I could have just pointed family members to it instead of attempting (unsuccessfully!) One reason why everyone is piling money into BTC and other crypto might be because the stock market is way too expensive right now. Stay on the sidelines. Im not saying to build a bunker or anything but just diversify your portfolio for different economic times. 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. Youre 100% right that fiat currency is only good when people trust itand that trust could be ZERO. But some people actually DO value rare baseball cards and stuffed animals and gold and tulips at current prices, as goods in and of themselves. Do you think Governments and Regulators have sat on the sidelines so far while Bitcoin is just exploding to a point that MMM had to sit and write a huge article? Vijay, its okay. Because it is. So now that youve got an truly immutable public data store, what do you do with it? 1. US is just one country in this big bad world, and not vice versa! By exchanging dollars or euros for a fee? Tim, do you think Bitcoin cares what the Government thinks or wants? Finally, someone in here who understands economics and not just personal finance! You are a noble man ! (based on July 20th blog post) Started by caracarn. 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. Because reasons, technology and internet! I read an interesting article regarding the price fluctuations, but I cant find it now. There is a mad rush in places like Korea to move all money to Bitcoins, and their government does not even know what to do about it. So in order to have immutability, we need decentralization. This is the same exact dynamic as tulip bulbs: Do tulip bulbs have a value? Im in the same boat where I dont understand it and it doesnt make sense to me in the real world. Cryptos may be the money of the future, but there is nothing sane about its rise this past year. Then the mining ist just looking up data in this table. It is, above all else, pure wealth, other substances, and activities may be valued in gold bullion. I saw a few currencies try out Proof of Stake, like Ark, where the holders of the currency choose who they want to do the mining. 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, some cryptocurrencies DO have intrinsic value, which is computational power. 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. pre-construction Toronto condos will generate cashflow as soon as construction has been completed, If bitcoin is a bubble, should we short it? You will not own your money more with virtual currencies. There is no reliable way to track or trace paper. We clearly see them in Africa, Middle East and Latin America. Basic Economics Vijay. Stefan Brand Research further. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Take a look around. (Now, as you mentioned, it is most likely just speculation driven by greed). Then it started falling as people cashed out. Fiat currencies my friend is working overtime for its own demise. 15% off everything you buy on Amazon basically. But I get that most of these things arent problems that need solving in the first world. In a world of human trust, putting the wisest and most respected people in a position of Adult Supervision is a useful tactic. Why would anyone do business with a medium of exchange that is accountable to nobody? im not some conspiracy theorist but I do see the value in a global decentralized currency (none of which is tax evasion btw, Every major exchange currently advises and provides you with a modified 1099-INT for you to file taxes, the IRS as well recognizes bitcoin as owning property and implicated short/long term taxes for owners). Remember there was social media before Facebook. A billion dollar gaming industry creating games worth watching. TO_Ont January 4, 2018, 9:20 am. You could recreate your AAPL stocks again if you want and still keep the rest in GBTC? I know have around $20k in crpyto having invested around $3500. It doesnt matter if it goes to $100 trillion per coin or per fingernail the underlying speculation is bullshit, which is why it needs to be stopped. So for it to be a global currency taco bell is going to have to start paying kids in btc. I for one am lucky enough to participate in the birthing of an alternative financial paradigm so that people have choices. January 3, 2018, 12:13 pm. Blockchain technology may do that too. Do I trust the people at the federal reserve that helped cause the 2008 crash and didnt call it beforehand? They are set at the margin, by the marginal buyer. So every time I say Bitcoin/altcoins are a stupid idea, I chuckle. Theyre not very good experts. We dont buy average cars or average homes we buy older cars, and smaller homes to cut costs and live a modest life. Why is the author so angry about this fact? The poorest in Sub-Saharan Africa earns the same money that you sitting in Manhattan, NY do. FriendlyPoster College, Medical, Cars, houses, Child Care, Stocks, Bitcoin, hell even dining out is all overinflated. Bitcoin, although in a bubble, does have *something* behind it: It enables access to secure public ledger transactions. The need for a cryptocurrency is very real. I agree w jon. An investment is something that has intrinsic value that is, it would be worth owning from a financial perspective,even if you could never sell it. As strong, intellengent Mustachians, we must think critically for ourselves about what is implied by trusting fiat currencies. A Ponzi scheme is a fraudulent operation designed to steal peoples money. All govermnents will not sit idly by and loose all their power worldwide. Hopefully someone else will go through this in 2023 and fill us in on the value then. Bitcoin mania isnt different from the dot.com mania or any other mania going back to the tulip mania. He is typing in capital letters to draw attention to specific words. January 2, 2018, 6:20 pm. Tulips? January 23, 2018, 12:50 am, Why Mr. Money Mustache is wrong and Nassim Taleb is right about Bitcoin: https://medium.com/p/81f5ffa42deb?source=linkShare-6c666494704c-1516693614. They saw value in it very early. Ive made more per hour than I do at my day job compared to the effort that I have put into this. Bitcoin has just 200 billion capitalization currently. Another intelligent case by highly experienced crypto business lawyer Preston Byrne. Well, shit. Again, how is Bitcoin replacing that? January 3, 2018, 7:32 am. Big ERN just recommended me to your blog and now I see that you beat me to the joke I just made. How else should people behave? If you do not know, We have prepared this article about details of Mr. Money Mustache's short biography-wiki, career, professional life, personal life, wife, girlfriend, dating, divorce, kids, today's net worth, age, height, weight, and more facts. PS: Brent, you write that if earnings dont pan out, stock prices wont necessarily drop. Subsequently, some 70 years later, Im still using that toilet paper to finance my retirement, buy cars, houses and all sorts of things? Just like we could end the climate castrophie in a couple years if everyone decided it was a priority and started working together to fix it, we can end milennia of war and economic oppression in just a decade or two, if we take back control of our money. Your in effect speculating on a winner even if you do believe the technology is the future. Its very informative and answers many questions you raise, 2. We have been in an expansion (the weakest one in US history) for almost 9 years. The value of a blockchain is its immutability, derived from its decentralization. That has happened before in the world. MMM says: There is no intrinsic value in cryptocurrencies. No one is suggesting that investing in mining is a good idea. Yes, that is your ground reality today. This is the most blasphemous thing ever to be written by MMM. 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. No bubble lasts that long and keeps growing exponentially. They dont tend to go longer than that. In other words, if you truly need it to buy stuff, and thus you need to buy coins from some other person in order to conduct important bits of world commerce that you cant do any other way. 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. E.g. However, governments and institutions are investigating the uses of some platforms, like Ethereum: https://globalnews.ca/news/3977745/ethereum-blockchain-canada-nrc/. It is cool. Let it get to 10 Trillion + in a couple or so years and then you come back talking about its stability! Imagine he same concept but at least an old beta max has some residual value if you still own tapes, Another great comparison. If I buy and hold a share of S&P500 ETF for the rest of my life, I will earn back the share price in quarterly dividends eventually. Closer to 85 years than 40. Prices would rise, especially if the supply of these pills was limited (just as an artificial supply limit is built right into the Bitcoin algorithm.). At the moment, theyre incredibly volatile compared to the monetary systems of the developed world. If it works out, its a windfall. Doh! When the common person does it, it can cause very big problems. Mustachianism the mental training that gets you to very early financial freedom requires you to evaluate inefficiencies in our culture and call bullshit upon them. Also if youre going to start the whole not everywhere is like the U.S. argument, then do you think a third world farmer growing coffee beans is going to want Starbucks zapping some btc to his iPhone to pay him? January 3, 2018, 12:41 pm. TO_Ont Care to mention how deep you are into it? NOTHING HAPPENS! Understanding the motivation is a big part of understanding Bitcoin. Well, imagine you are in 1963 and you hear the speech I have a dream from Martin Luther King on abolishing slavery and you ask the question Why do you think this will happen?. I can trade with anyone in the world for a low price (not necessarily with bitcoin as the price has gotten expensive but with other currencies). If you could have somehow monetised the Internet in 1992 and sold it, imagine how rich you would be right now? And gold has at least *some* practical value you can make attractive jewelry that doesnt tarnish, use it in electronics, dental fillings. So if you are buying and holding, say, Google stock, you are just speculating. That said, Im still not so sure. Im selling because I agree that cryptocurrencies have entered the bubble phase, but when it comes to theirlong-term viability, you have completely missed the bigger picture. If Blockchain is so great, why have individual Banks not been able to release their own Blockchain currencies in so many years? So what Im saying isdont dismiss it based on where you see todays generation using todays rudimentary blockchain with todays technology and society. Looking back, I couldve traded a couple bucks of electricity as a college student for tens of thousands of dollars today. Then I came to my senses and realized that I only want to make money providing value to society. And nothing that can go on forever, does. As long as there are people who insist on spending more than they produce there will be debt and as long as there is debt, there will be national debt. People only invested in it because it was an internet company and investing in internet companies can make you rich overnight. Looks like I made a big mistake then. On the popular Coinbase it will cost you about 4% just to exchange USD for BTC. What value is there? She works as a school monitor and the kids have an area of the forest next to the school to play in. This volatility thing that seems to be biting you folks is because Bitcoin is at 200 Billion capitalisation today. What are the world currencies pegged to ? Back it up, or youre just another nutjob. This instability just further proves that it would make a terrible currency and a recent study reveals that about, Mr. Money Mustache. Hurry! You need some sort of fundamentals, and in bitcoin there are none. Yes, it is true that bonds are *also* in a bubble at the present timeand that the bond bubble is so big that it makes stocks look relatively cheap by comparison. Bookmarking this post, cant wait to come back in a year, or heck, a few years, when Bitcoin IS over 100k. Governments have no choice here. It seems like youre advocating for scenario #2. Im a younger kid so I definitely only heard of Betamax. 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? They could also plateau until earnings catchup with prices.. Glorkvorn Its a huge money maker if you can bet that youre not the bigger fool. January 3, 2018, 12:55 pm. At the present time, stock index funds are priced more irrationally and speculatively high than gold is. I believe the current Cryptocurrency investment mania is a huge waste of human energy, and our rate of waste has been growing exponentially. But boy, are you wrong on this one. The act of speculating on an asset is what drives it to its proper price; they are critical players in the process of price discovery. Not going to do this with you. Thus, they are not useful, and produce nothing useful. The growing demand for more electricity is the most serious issue with Bitcoin, IMO. The very definition of an unsophisticated investor is Being more willing to buy something, the more its price goes up.. I totally agree with you on bitcoin. And then follow that thread all the way back to the fact that the future blockchain(s) all of these future uses are built on are going to be continuations of the most valuable blockchains of today because valuable blockchains are a prerequisite for the data integrity required for high value use cases. if you over leverage yourself in any of these you can find yourself in trouble. Vijay What ICO do you own? Or physical goods if you want to use it to record land or vehicle deeds, etc. Why not somebody else's fingernail clippings? So I also read a lot about investment bubbles and fundamentals and how to tell those apart. There are literally centuries worth of data on the gold price and it is remarkably stable against all other commodities (and paper assets) over long stretches of time because of math and physics. Thats why its unwise to go all-in on something just because its going up. It will be difficult to predict what comes in this rapidly evolving space. 4. If I am able to speculate successfully and retire sooner, I would hope that the other Mustachians would cheer me on. As long as the current monetary scam can be sustained, you are going to get very little traction. Also, what is the source of that study? Liked. This results in a silent crash, and a loss in purchasing power for stock holderseven if the nominal price of stocks remains the same. Market timing is a fools errand anyway. If cryptocurrency takes off, its much more likely that the winning one hasnt even been created yet, if history holds. January 4, 2018, 2:35 pm. Tulips. https://t.co/wfi8XTq77s" Taxation does not give money purchasing power. It is subject to crazes and manias. It all depends on how much personal enjoyment they get compared to the cost to own them. Its hard to quantify the lost energy and human potential, but the cost is real. But I think you meant to write apologize on behalf of half of humanity. The other half of humanity has no internet access at all (internet access just eclipsed 50% of the worlds population this past year), and thus they should not bear any responsibility for the cryptocurrency craze. I agree with MMMs eloquent outlining of the major concerns with investing in cryptocurrencies. That is something very valuable just like stocks are. Thanks, MMM! Here is one interesting chart among many that shows exactly that: Even things that can be good investments can be in a bubble. He or she still determines the current market price. So buying tulip bulbs is not insane at a reasonable price. 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. There are dozens more data points just like these. Naturally sentiment plays an important role in BTCs price. It is when stock prices stay the same in nominal terms but everything else rises in price around them, effectively masking the very real stock market crash through inflation. There is a high chance that Bitcoin doesnt remain #1 forever because there are so many cryptocurrencies, many of which with very different applications, including some that arent even based on blockchain technology. Bubbles or Tulip Mania as you put it dont do what bitcoin has done since its inception in 2009. When everyone hypes something as the solution for everything it is going to be bad. The potential upside outweighs the risk of the initial cost. Very good article! 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Me on good when people trust itand that trust could be ZERO I read! Put it dont do what Bitcoin has done since its inception in 2009 ( now, you.
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