It is a bubble based on mere speculations lacking in monetary regulation. If people still buy into this high-risk enterprise and get stung, they should just quietly lick their wounds and rock themselves to sleep. A fool and his money are soon parted anyways. Trading in futures that are not anchored to tangible financial assets is to me akin to borderline lunacy and is unsustainable but then what do I know? To be rich is not the same as to be wealthy.. Wealth is built organically, a little at a time while riches sometimes are evidence of opportunity presenting itself without a knowledge base. It is an established fact that Ponzi schemes succeed in climes where low financial literacy, lack of collective thinking and low value systems thrive. Let them invest and keep investing. They only have themselves to blame. After a flash of lightning comes thunder.
Bitcoin is a block chain of numbers is thin air. It is like backing you financial assets with lines of code… DOA
Blockchain is not DOA. It is not numbers in the air. It’s technology is one of the most secure. You can say all you want from what you understand. Like all new technology everyone is skeptical. Blockchain is not just about bitcoin. It is a decentralized and distributed digital ledger that is used to record transactions across many computers so that the record cannot be altered retroactively without alteration of subsequent blocks and the collusion network. I work for a tech company and we sell blockchain solutions. Its ledger handling is secure to non.
Finally, from Omo Leigh:
The way I look at it is this, cryptos like Bitcoin—I would argue like certain other commodities like gold—lack intrinsic value It serves only as a store of value. We can argue about its effectiveness at storing value due to its high volatility. Beyond that, I do not think it is capable of serving as real currency for now due to the wide gyrations and unstableness.
The upward movement of the king-crypto is largely speculative, not fundamental, it is only a matter of time before this tulip bubble busts. Having said that, early investors, and more recently big institutional investors are making a kill. I bought Bitcoin when it was under $600.00 (now $9700). My colleague at work bought at $35. I bought Etherium @$30.00 (now $470 as of today). Assuming there is a 30% correction, I still come out way on top. Like you always say MO, it’s about knowing what your risk tolerance is.
As for the charge that Bitcoin is rich people’s MMM, not quite—may be it now is. Early investors were mostly the underworlds and deadbeats, which was why mainstream folks like me did not invest. These everyday Joe Blows bought when it was $0.57. A paltry $27.00 invested could have netted you millions today with minimum risk. Chai! See my life! Sadly, it is late entrants who will suffer.
This is my take, invest not in the currency but in the technology. Blockchain tech is revolutionary. Its application will eventually disrupt how transactions are conducted. I buy Etherium for its revolutionary ledger blockchain, not for the currency. We are still far away from cryptos upstaging fiat money but blockchain is quickly gaining wide usage by banks and fortune five hundred companies. The underlying tech, Blockchain, will outlast bitcoin craze; only a matter of time. If you tailor your investment goals with this in mind, you are more likely to come out on top because more often than not, it is new and previously unknown companies that last into the future not the pioneers. Look at what happened to early dot com pioneers; they are no where today.
IBM is currently working on its own blockchain ledger. You can play the game by proxy. Buy into companies that support the crypto market like Envidia and other Chip makers like AMD. Edge your exposure but whatever you do, have a skin in the game. Blockchain is the future; potentially bigger than the internet.
You can download BTCNEWS app on your iphone if you want to keep up with blockchain news. Watch out for all the noice and promotions pay attention to the critics and make informed decision. Remember Warren Buffet was wrong about the internet and he was wrong about facebook. Don’t just dismiss blockchain tech. Educate yourself. Have a skin in the game.