MissSaraBee And likewise you can scratch off the idea of any government backed cryptos, because those are by definition centralized. We live in a world where both can, do and will exist. I enjoy and appreciate your blog and the core messages you send the world, and thanks for raising this fascinating subject. Even though it really is nothing but cyber reality. I am beginning to get it Mattheus. Returns are down and all that cash needs to go somewhere. Yeah, I had watched/listened to lots of Andreas stuff as part of the research for this. Theres illegal activity in all its shapes and forms (ie. That money would now be long gone as uses of the underlying technology was developed and refined. Doingone transaction burns 215 kilowatt-hours of electricity, enough to run the entire MMM household for more than a full month, or to power an electric car formore than 800 miles of driving. But its not some spectacular Instant Trillionaire piece of magic. If youre in a position to do so, go for it. Ive never heard of anyone investing 100% of their net worth in a single moment in time that could get penalized for that type of freak market condition. Its totally different when you lose your money by yourself. Please dont take the Proof of Work Blockchain like Bitcoins as the Blockchain. Interesting article, with some great points. I dont think Bitcoin will be very snuggly. What is the US Dollar pegged to? . Stay on the sidelines. =. Andre Kostolany. Ryan Thomas If you feel comfortable developing your own metrics with which to gauge coins and want to invest in projects long term, you can. A boy named Sue No doubt it will crash but I think it still has room to go. 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. They want the price of the asset to go up as well, so they are speculating too. Google, Amazon and Facebook came out of it. 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. Mr. Frugal Toque January 3, 2018, 12:55 pm. My mother in law collected beanie babies and I had the pleasure of looking up their worth this Christmas back hometheyre about $5 each and I will owe eBay 10% + shipping. This is the most blasphemous thing ever to be written by MMM. 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. January 3, 2018, 1:08 pm. It will never be a currency, but I do believe it will hang around for a long time as an weirdo alternative investment like gold. as long as people in their consciousness believe it is a store of value it is. If cryptocurrency takes off, its much more likely that the winning one hasnt even been created yet, if history holds. In this way, dollars are the ultimate speculation. The timestamp on these comments is pretty helpful to see who was right! You clearly have a contrarian opinion here. Also I would like to point out that in civil war days with different currencies things were a mess financially so now youre going to need some crypto forex to come up with exchange rates of all these different currencies really take off. Right now a nascent currency like Bitcoin is not able to handle the transactions in a similar fashion due to limited bandwidth, and people like you point that out and say, look it cannot even handle the current level of transactions how is this thing going to replace Visa or MasterCard? Or grid power in general. This has happened with EVERY speculative event throughout recent history. Note that if you remove any of these essential elements, youve made the system effectively worthless. Check your funds. I guess Petes point here is that block chain protocol has benefits but bitcoin is stupid. El Penguin No major government will transact in a currency it cannot control. I believe MMM has missed the point completely in his rant above. 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. Full anonymity and government evasion will not be one of its features. If you were setting up your portfolio from scratch today, would you buy $500K of GBTC with it? Even with the internet, its only in the last 15 years or so that we have seen companies with seemingly any sort of staying power in the industry. Jeremy Collins From arranging hits to buying drugs to political corruption. The dams generate electricity whether you need it or not. The sooner we debunk the myth and come to our senses, the richer our world will be. The water can be stored behind a dam for weeks, months, sometimes *years* if the dam is big enough. As for spending your Bitcoin, I digress. I dont feel like making a well-constructed arguments because Im tired and this may make me look like a fool but frankly, I dont care. I have been hearing Bitcoin is a scam and a bubble since the time it was 200 bucks! As a result, changes in perceived value result in big price swings. In 2018 and 2019, expect the speculation to subside as more tokenomics becomes important for valuations. ), bastringue Nothing is promised. January 2, 2018, 5:54 pm. But instead of seeing how ridiculous this is, even morepeople start piling in and bidding up every new variety of pills (cryptocurrency), over and over and on and on, until they are some of the most valuable things on the planet. I am of the opinion all of Fiat will get wiped out in a decade or two! Thank you Jane, I have been waiting for someone to point this out! but remember short positions have a possible infinite downside while buying the asset has a possible infinite up side, If you do this youre still speculating on a market that cant be understood right now. Crypto currencies are a must have component of your investments and should constitute not more than 10% of your overall investments, based on your risk appetite. The ones who own the farms you mean? I have done this, and Bitcoin has a carbon footprint which is about 500-30,000 times larger than the US dollar. Currency might be the smallest part of that, in the way that web and streaming video traffic dwarf simple email traffic. Heres a great description of the whole scene by Chain CEO Adam Ludwin. All this bullshit about backed by faith and credit of my country goes out of the window when currencies die someday. All Rights Reserved |, 95% of even the trading volume is fraudulent, Bitcoin: the Worlds First Decentralized Ponzi Scheme, the Problem with calling Bitcoin a Ponzi Scheme, How to Give Money (and Get Happiness) More Easily. Its a vicious cycle, but Ive just got to bite the bullet instead of going Wah, it was $2 cheaper a week ago.. Mr. Money Mustache January 16, 2018, 4:53 pm. I agree totally. Why Bitcoin and not another coin? All I had to do was sell the integrity of my blog for $100 non-bitcoin bucks (via PayPal of course.) Ive yet to find anyone who has. The short answer is they can do nothing about it! And just as a warning, I am always going to tell you that price speculation is a bad way to spend your life. Bitcoin is actually a saviour that provides the world an opportunity to get out of total mess without fighting a WW3! Besides, theres value in bitcoin, like with gold or a comic book, or any other item people assign a value to. I noticed that you didnt deny that you are invested in Bitcoin. Anyway, what would he dump it for? I agree with you. Do something useful with your money. Rather than maximize profits, what about minimizing regrets? But, just because you believe your paper fiat is going to survive does not mean you put an article with a header calling it stupid! . You are a fine example of that specimen horse. Market timing is a fools errand anyway. All that the US has done since 2008, is hit the ball further and further down the road while at the same time blowing it more and more with air (read Quantitative Easing). Definitely not. It grew to $240k. Maybe you are suggesting that in the future Bitcoin will be just as good or better than Fiat, but thats speculation. Saving billions from poverty, war, and the enslavement of banks or the lack of any banking is Altruistic. If so, congratulations. Absolutely. They always do. The worlds governments are not going to let everyone start trading money anonymously and evading taxes using Bitcoin. Soon, they will be on the brink of bankruptcy and you will be able to purchase all of their stuff at a discount. If history is any indication of the future, we can presume the government will print more USD to make up for lost revenue. Most people understand nothing apart from my friend bought some BTC for $5k last month and now theyre worth $20k. To call gold a non-productive asset misses the point entirely. Love this blog and agree with most of your opinions on Bitcoin. If so, this could negate the discount benefit for small purchases. Is Bitcoin eventually going to replace the physical green back dollars and coins in our pockets? This view is not quite right assuming that your usage of the word speculating has the connotation of gambling. Its a win-win situation. Market prices are not set by consensus. It needs to expand with the supply of goods and services in the world, otherwise we end up with deflation and hoarding. He and his wife studied engineering and computer science in Canada, then worked in . Devs in their mid 20s who owe the IRS 50k and lost most everything. 2) lots of other things are used as a store of value (paintings, etc) Why not one of the other 1500 cryptocurrencies? Staying the Course in War-Time. In the US we call it the full faith and credit of the United States. To keep things non-promotional, please use a real name or nickname(not Blogger @ My Blog Name). All they can do is to ban and stop the exchanges. This might be normal for an era such as this, where the growth is coming from real tech companies instead of widget makers. After all, you could make the same argument about Mr. Money Mustachesfingernail clippings: they may have no intrinsic value, but at least they are in limited supplyso lets use them as the new world currency! You could always follow the Long Island Iced Tea model: 1. It stays below the prior high for decade at least, sometimes forever. 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. 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. Id like to apologize on behalf of all humanity that you were compelled to spend some of your life energy on that. Max Your Freedom About the Comments Section:Normally, I try not to publish comments that are just emotional reactions or totally uninformed. The sensible-sounding ones will say, Sure the G20 nations all have stable financial systems, but Bitcoin is a lifesaver in places like Venezuela where the government can vaporize your wealth when you sleep., The harder-core pundits say Even the US Federal Reserve is a bunch a CROOKS, stealing your money via INFLATION, and that nasty Fiat Currency they issue is nothing but TOILET PAPER!!. Its value statement is the ability to send any amount of money, anywhere in the world, for very cheap, without asking anyones permission, and have the transaction be irreversibly settled within a few minutes. VTSAX returned over 22% last year. But, dont you initially invest money into Bitcoin thru your bank? drugs, prostitution, gambling, etc.) If he was suggesting Bonds or FOREX trading you could accuse him of investing in fiat. I agree that Bitcoin isnt an investment. 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