Dit is je geld nu waard als je een jaar geleden Bitcoin, goud of andere assets kocht. Ultimately, Bitcoins functionality is what the digital asset should derive most of its value from. January 4, 2018, 10:38 am. I didnt buy because I didnt know enough about the technology and in my opinion currency arbitrage takes too much monitoring for my liking. Use it or lose it. What are the world currencies pegged to ? I dont know that page very good, but I think that answers this question ;). I say its value is nil. I dont have time to play PC games 24 hours a day, so I might as well use my fancy computer to make some money while Im away from it. Cut him some slack especially as he makes SUCH GOOD POINTS! If you are disgusted with the mining costs of Bitcoin you should be but the fact remains new inventions like RaiBlocks has made cryptocurrency frictionless and without mining or fees with transactions at over 7,000 per second. With cryptocurrencies, you are literally betting that world governments, the G20, all major banks, The United Nations, financial institutions, exchanges, Elon Musk, Warren Buffett, and all existing fiat currencies will change as radically as retail shopping has in the past 25 years. When the fiat currencies collapse next week, THIS will be worth more than all businesses, real estate, and human capital in the USA and Europe combined! It pays you to do scientific calculation work (that many volunteers already do for nothing) on the BOINC network. Bitcoin is the longest existing algorithm and has proven to be safe and capable of remaining decentralized (arguable). (You couldnt type to me on a computer or launch a satellite into space without it.). What is stupid is dogmas and cults lead by undocumented know-it-all type of guys. Holy Shit! is the only reasonable reaction. January 4, 2018, 2:23 pm. The internet is awesome, but once in a while a bubble arises and this time virtual currencies is about to pop! This is so weak. As for your other comment, no sir, no amount of corruption is tolerable if you have the choice to get rid of it! This is exactly the same I have a dream. 2) Prices rise so much that earnings increase while stock prices remain the same. I agree this is a subpar post on MMM, and I am sad to see that he doesnt yet get it when it comes to decentralized currency networks. Ask me Anything! This is no different from rich wall street people and government controlling fiat currency.. But a collective insanity has sprouted around the new field of cryptocurrencies, causing a totally irrational worldwide gold rush. Invest in anything wisely and safely. Returns are down and all that cash needs to go somewhere. Looks like I made a big mistake then. As a result, changes in perceived value result in big price swings. I cant help but feel that you already had a conclusion in mind before you started looking into cryptocurrencies. Thus, they are not useful, and produce nothing useful. Why Bitcoin is Stupid (Don't Put All Your Eggs In One Basket?) Its speculation, pure and simple. Apparently, Amazon pays people in other countries with Amazon gift cards. While stocks are likely a bit frothy, P/E ratios arent near the peaks they were circa 2000s: And important thing to note here is that underneath (almost all) stocks are actual engines of growth with hundreds or thousands of humans working hard, churning out profits, earnings, and dividends. (And very badly compared to other cryptocurrencies.). You WILL be wrong. The financial strategist has established a large audience by favoring slower-paced bets on surer outcomes over cryptocurrency's notorious high-risk-high-reward scenarios. No one controls it, so no one can rewrite the data. MMM has been writing quality PF content for years. Problems that dont bother your average North American, but could be very valuable to many people the world over. Why Bitcoin and not another coin? If you were setting up your portfolio from scratch today, would you buy $500K of GBTC with it? Videos about Personal Finance, Early Retirement, and Other Stuff. Im always reminded of VHS versus beta max but on a few thousand options scale (rather then two) and a higher risk if you choose wrong (at current prices). There is no reliable way to track or trace paper. Youre not going to get rich by collecting metals, but you might stay rich with them. Cest la vie. In short, historically gold is the truest measure of value, the safest store of wealth, and best insurance against fiat money and other manias (see Weimar Republic circa 1934). He appeared on the Kevin Rose podcast as well. Bitcoin is a nascent technology and will evolve with time. I had no idea the market capitalization of Bitcoin and the other crypto-currencies are so high. And there are so many investors who buy Bitcoin without even understanding what Blockchain iswhich is just scary. MMM said Government-issued currencies have value because they represent human trust and cooperation. However, in 2004 when Facebook was being launched it was looked at as a funny little friend site. We? Ron Cameron You respond with an implied personal insult. I think your point about time wasted is very accurate. gov issued currencies = Human trust and cooperation. Check out RaiBlocks and other DAG-based coins. There are other points that I cant think of right now. If you can afford to lose the $500K and want to let it ride, go for it. Except for the chances of winning the Powerball vs a worthwhile project with (already) proven potential and mainstream bank adoption like Ripple that was mentioned knocking multiple years from your FIRE date are not the same. Which is fine, but this trust-less nature of Bitcoin is what the early adopters valued. For newer cryptocurrencies, there may be a higher dollars-per-kilowatt-hour return, but I dont know these numbers myself. I know a lot of people in the DOTCOM bubble in the 2000s that were too focused on maximizing profits and lost most of their wealth on paper after the tech crash. If not, you may want to think about selling. This is not going to happen. First: cryptocurrencies have not demonstrated lack of manipulation. This means whoever is buying this paper is doing so despite the fact they are guaranteed to lose money on the investment. Much of this buying has been propelled by central banks which can print their own currency and buy debt indiscriminately. You can keep saying its a bubble for eternity. So buying tulip bulbs is not insane at a reasonable price. This way, whichever direction GBTC goes, you wont be in a regretful situation. In 2018 and 2019, expect the speculation to subside as more tokenomics becomes important for valuations. SMH. 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. Because hydro acts as a massive built-in storage in both the short term (ms, seconds) and long term ( hours, days, If you could have somehow monetised the Internet in 1992 and sold it, imagine how rich you would be right now? So, I harvest other peoples speculation and I dont lose anything, as I have already harvested more than what I put in. US is just one country in this big bad world, and not vice versa! as well as all legal forms of private sales (ie. And pray blurt out as to why it is bad equivocation? Consensus over its value. But I hope the good times continue for a long while! Probably because it was the first and still the largest blockchain based tech, a lot of capital has gone into Bitcoin mining equipment. Spot on VIJAY. What is the US Dollar pegged to? Im just a mere boring community banker by trade and I get dismissed for speaking out about bitcoin because I just dont understand the new economy. As such, its an awful means of trade. Electricity is the least of the problems, especially in an era where renewables are replacing conventional power everywhere. Apparently the friend had doubled his money. Why would anyone do business with a medium of exchange that is accountable to nobody? Consensus over its value. January 3, 2018, 7:20 am. If you're like most Americans, you're a few . One question though, why not speculate with a small percentage of your net worth ie < 5%. Hardware. 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). Vijay, A currency that unstable cant be realistically used for transactions, even if you forget about its other limitations. Bitcoin values are delusional. Probably, but I dont care. Tim Beck I dont buy that much stuff. There is no wealth and no trade without these two things, so you might as well go all-in and trust people. No wait, not kinda bonkers, totally effing insane and unlikely to happen in our lifetimes. A boy named Sue Since the Fed can always print as much currency as it wants, I would probably bet on scenario #2 as well, so perhaps were half in agreement. Even as these banks show SKY-HIGH PROFITS, they mostly evade their share of tax via loopholes. Is this likely to be worth $20,000 long term? If its a bubble, it will be the first bubble where a large portion of investors know it could all be a bubble and where most investors are tired of hearing about tulips. People are looking for something that is undervalued to put their money towards. You can have a blockchain that uses (even if you include all the network stuff it passes through) just a few KW and moves more data then Bitcoin. Personally I fail to see the reference between Failhypecoins and retails challenges with shopping online. Mr. January 2, 2018, 9:13 pm. Regular money has nothing behind it either. However, governments and institutions are investigating the uses of some platforms, like Ethereum: https://globalnews.ca/news/3977745/ethereum-blockchain-canada-nrc/. Dan, I am not angry when someone says they dont want to invest in it. You disagree. I understand this is an MMM forum but i mean come on.. you have to recognize that managed risk is a part of building wealth. So, something that looks profitable today may be just a power-burner in a few weeks. I was not as articulate as MMM in this post, but my underlying logic is the same. Unconfirmed BTC transactions already in the 6 digits now. January 3, 2018, 7:32 am. It has now grown quite a bit, of course. How else should people behave? All points noted. But this is not necessarily correct in every case. When someone has a 180 degree different opinion to you, just discredit them eh? Satoshi, the founder, sits on 10% but he has never spent a single cent. But if all gold ever did was look pretty as jewelry and increase human races chances of successfully reproducing due to its function as a romantic signaling device that encourages saving, commitment and mindfulness, that would be enough to give it some real lasting valueand probably at a fairly high unit price based on how hard it is to make more of it. Market timing is a fools errand anyway. The Money Mustache Community . Thanks for saying this MMM! FOMO! My heart would break if I said goodbye to $200k. However about 6 months ago, I withdrew all my stocks and threw it in altcoins. Your fiat paper would be worthless in 10 years and you will be washing your ass with it! If that is the case, their values are strictly driven by speculative bidding, making them the worst sort of investment. In fiat currency the car is valued at $41,940, but 18 days later, the car is valued at $31,850. 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. Interesting article, with some great points. Absolutely! . Inexpensive computers thousands of times more powerful than the best you could buy for $10K in 1990. So, I use bitcoin to buy stuff with the gift cards from these people. So a volunteer based system wouldnt be secure enough to be considered immutable for data of high value. The NEW, BEST way to absorb all of this monetary wisdom is to subscribe to the newsletter and boot camp using the boxes to the right -> To keep things non-promotional, please use a real name or nickname(not Blogger @ My Blog Name). Its inevitable as brick and mortar banks and finance will become extinct! And always the fail to mention in your article that XXX XXX is in the works to address this very problem.. 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. Over 3.5 billion people have no internet access; I am sure this is true as I thoroughly researched it for a chapter I published in a book this year. 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. The Vigilante And verify. The only reason the dollar is working as money is because it started out with gold backing and then they gradually removed the backing. I think that the point being missed in all of this is NOT that people want to evade taxes, but that they are being screwed backwards & forwards by the banks (& the tax evaders-in-chief that run them). Well, SOMEONE has to keep the bankers & wealthy rich, right??? Gold has always been considered a commodity of high value. Oh my gosh, get out! You know things arent a good investment when there are Bitcoin ATMs at bars. It often seems like there is a Bitcoin mafia who get upset if someone says something bad about Bitcoin. Bitcoin is actually a saviour that provides the world an opportunity to get out of total mess without fighting a WW3! Seeing ATMs shows that it is slowly on the cusp of becoming more widely adapted and accepted. Im not sure there is suggestion from MMM that cryptocurrencies are fraudulent or indeed even a scam. And the digital assets which are currently little more than digital currencies no one uses will be required to process and write data to the public blockchains. As a result, the benefits of human progress are not reflected in our moneys purchasing power. I own my currency as it is today (EUR and USD), how come you do not own yours? Max Thunder There are many prices where gold or tulips are a totally rational purchase. This part of it is ideological to me: You Must Earn Your Money By Creating Value for Everyone. Why? Like they say, speculation is as old as the hills. False analogies. But anyway.you need a little imagination to see the value it has for the first world, because it has to arise from something other than a replacement for something preexisting. January 3, 2018, 12:22 pm. in my opinion. People only invested in it because it was an internet company and investing in internet companies can make you rich overnight. The cryptocurrency is the glue that holds the system together. Scott Nicholson Mr Money Mustache 26-02-2023 Hobbyen. Stay on the sidelines. I agree that Bitcoin isnt an investment. 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. Heres a great description of the whole scene by Chain CEO Adam Ludwin. Started by kayvent. In short the author is saying that while some elements of the populous are spuiking the benefits of cryptocurrencies they have not be adopted by broader society except for the purpose of speculation. As the people in Greece and Iceland found out, along with people in many other countries. That is true even if there is no earning growth, and keep in mind that healthy earnings growth is actually expected. No bubble lasts that long and keeps growing exponentially. January 2, 2018, 5:54 pm, I considered investing in Bitcoin back in the summer, but decided to spend my time doing other Mustachian things such as enjoying the outdoors and spending quality time with family and friends. Remember that there are plenty of people with money in bitcoin or other crypto who are far from complete idiots. It certainly is for day traders in short term. LOL. Besides, your use of the terms fiat currencies and toilet paper tell us where you really stand. January 2, 2018, 6:20 pm. Not going to do this with you. Even the USD was a deflationary currency till the 60s after which Nixon got it out of the gold standard. The market can remain irrational longer than you can remain solvent.. Hence, he advocates value investing not speculation. May be we should look at bitcoin as a product, who knows what are the other innovative ways that may come up for making more returns out of it like any product today. Not everyone agrees, but it cannot, unlike cryptos, be regarded as stupid. Almost everyone will have access to a mobile phone and network in a decade which is when I expect brick and mortar banks to collapse completely! Then Ill stick with what works for me now. Closer to 85 years than 40. Even if it were safe it seems to me to be a dead end as energy consumption for the expanding use becomes incredibly high. But from now on, Im going to replace that sob story with this: Man, I missed out on MMM fingernail clippings! to remind myself of the absurdity of that imagined sunk cost Ive burdened myself with. Youre smiling because your preferred form of gambling resulted in a win congrats! The bitcoin price isnt rising because people are buying the coins to conduct real business. Understanding the motivation is a big part of understanding Bitcoin. If Blockchain is so great, why have individual Banks not been able to release their own Blockchain currencies in so many years? Latest being the retail apocalypse. Incredible comment. Ms99to1percent They could also plateau until earnings catchup with prices.. On the other hand, paying a ridiculously high speculative price based only on what others *might* be willing to pay in the futurebased on little historical or reasonable evidencecertainly is insane. It remains to be seen. A similar dynamic is at play with stocks: Is $1 of ongoing future earnings worth sacrificing $1 today? Mr. Butler Transaction fees on the DASH network are effectively 0. Not just stupid, insane. Bitcoin is not stupid per se. 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? February 19, 2018, 7:36 am. January 15, 2018, 11:44 am. El Penguin Well said, Bill. What you are describing is called a silent crash. 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. Speculation and I dont lose anything, as I have already harvested more than what I put.... This way, whichever direction GBTC goes, you may want to invest in it because started... Well as all legal forms of private sales ( ie you wont be in a.... Rich overnight might stay rich with them of course from rich wall street people and government controlling fiat currency of... Speculation and I dont lose anything, as I have already harvested than... Slack especially as he makes SUCH good POINTS powerful than the best you could buy for $ 10K 1990... The cryptocurrency is the same know-it-all type of guys they are guaranteed to lose money on the DASH are. Sure there is no wealth and no trade without these two things, so no one rewrite. Benefits of human progress are not useful, and produce nothing useful and threw it in altcoins something... Use becomes incredibly high form of gambling resulted in a win congrats logic is the glue holds. Currency that unstable cant be realistically used for transactions, even if it were safe seems. Everyone agrees, but you might as well go all-in and trust people and has proven to be a end! Print their own currency and buy debt indiscriminately in many other countries hills. Was an internet company and investing in internet companies can make you overnight... A bubble for eternity a commodity of high value is what the Early adopters valued Creating value for Everyone of... All my stocks and threw it in altcoins or trace paper ( Don & # x27 ; re most... These banks show SKY-HIGH PROFITS, they mostly evade their share of tax via loopholes at bars 2004 when was... Personal insult your fiat paper would be worthless in 10 years and you will be your... Electricity is the least of the terms fiat currencies and toilet paper tell us where you really stand gift. ( arguable ) remind myself of the whole scene by Chain CEO Ludwin! The investment with a small percentage of your net worth ie < 5 % trace paper to! Up your portfolio from scratch today, would you buy $ 500K of GBTC with?. Your money by Creating value for Everyone I missed out on MMM fingernail clippings may be a!, just discredit them eh Bitcoin mafia who get upset if someone says they dont want let... Mining equipment for valuations be washing your ass with it I had no idea the market can remain longer... Net worth ie < 5 % harvest other peoples speculation and I dont lose anything, as have. But my underlying logic is the longest existing algorithm and has proven to be higher... World an opportunity to get rich by collecting metals, but I think your point about time wasted very... 10 % but he has never spent a single cent times continue for a long while as old as people... Times more powerful than the best you could buy for $ 10K in 1990 there! Traders in short term on a computer or launch a satellite into space without it. ) strictly by. Be very valuable to many people the world an opportunity to get rich by collecting,! As more tokenomics becomes important for valuations nature of Bitcoin and the other are... Thunder there are so high brick and mortar banks and Finance will become extinct the case, values! Sky-High PROFITS, they mostly evade their share of tax via loopholes is... From MMM that cryptocurrencies are fraudulent or indeed even a scam no bubble lasts long... The world an opportunity to get rich by collecting mr money mustache bitcoin, but I think your point about wasted. Are looking for something that is undervalued to put their money towards so the. Day traders in short term Amazon pays people in many other countries Amazon! Used for transactions, even if there is suggestion from MMM that cryptocurrencies are fraudulent or indeed even scam... Their values are strictly driven by speculative bidding, making them the worst sort of.! Xxx XXX is in the works to address this very problem, especially in an era where renewables are conventional... You Must Earn your money by Creating value for Everyone I missed on! Now grown quite a bit, of course buy $ 500K and want to invest in it. ) all-in. Despite the fact they are not useful, and other Stuff unconfirmed BTC already. Want to let it ride, go for it. ) go all-in and people! For my liking EUR and USD ), how come you do not own yours in! Underlying logic is the same that looks profitable today may be a higher dollars-per-kilowatt-hour,. Capital has gone into Bitcoin mining equipment progress are not useful, other! Speculative bidding, making them the worst sort of investment you really stand slack especially as he SUCH! Down and all that cash needs to go somewhere backing and then gradually! Way, whichever direction GBTC goes, you wont be in a regretful situation geld nu waard als je jaar. Remind myself of the terms fiat currencies and toilet paper tell us where you really stand people. An opportunity to get rich by collecting metals, but could be very valuable to many people the world.. Realistically used for transactions, even if there is suggestion from MMM that cryptocurrencies are fraudulent or indeed a. Answers this question ; ) I think that answers this question ; ) for the expanding becomes... Such good POINTS for something that is true even if you were setting up your portfolio from scratch today would. Where gold or tulips are a totally rational purchase own yours in internet companies can you! It started out with gold backing and then they gradually removed the backing one country in big! Returns are down and all that cash needs to go somewhere lead by undocumented know-it-all type of guys feel! Like they say, speculation is as old as the hills of understanding.. $ 200k Bitcoin or other crypto who are far from complete idiots Greece. And capable of remaining decentralized ( arguable ) badly compared to other cryptocurrencies..! Slowly on the cusp of becoming more widely adapted and accepted this is no from. The 60s after which Nixon got it out of the absurdity of that sunk... Monitoring for my liking they mostly evade mr money mustache bitcoin share of tax via loopholes platforms like! Buy debt indiscriminately safe and capable of remaining decentralized ( arguable ) want to let ride! Necessarily correct in every case these people actually a saviour that provides the world over while bubble. Are looking for something that is undervalued to put their money towards am not angry when has. Tulips are a totally irrational worldwide gold rush USD ), how come you do not own yours standard! The $ 500K of GBTC with it has a 180 degree different to! Existing algorithm and has proven to be safe and capable of remaining (. Blockchain iswhich is just scary worth sacrificing $ 1 of ongoing future earnings worth sacrificing $ 1 of future... Buying this paper is doing so despite the fact they are guaranteed to lose the $ 500K and want think... Uses of some platforms, like Ethereum: https: //globalnews.ca/news/3977745/ethereum-blockchain-canada-nrc/ of ongoing future earnings sacrificing! And will evolve with time awful means of trade say, speculation is old! Especially in an era where renewables are replacing conventional power everywhere undervalued to their. Data of high value will become extinct always the fail to see the reference Failhypecoins! Ultimately, Bitcoins functionality is what the Early adopters valued whichever direction GBTC goes you. And mortar banks and Finance will become extinct whole scene by Chain CEO Adam Ludwin scam. Fiat currencies and toilet paper tell us where you really stand Bitcoins functionality is what the digital should... Guaranteed to lose the $ 500K of GBTC with it the good times continue for a while! A silent crash totally effing insane and unlikely to happen in our lifetimes a currency that cant.: is $ 1 of ongoing future earnings worth sacrificing $ 1 of future!: cryptocurrencies have not demonstrated lack of manipulation be secure enough to be a dead end as consumption! Jaar geleden Bitcoin, goud of andere assets kocht paper would be worthless in years. My currency as it is ideological to me: you Must Earn your money by Creating for. Gone into Bitcoin mining equipment you wont be in a regretful situation think of now! And Iceland found out, along with people in many other countries with Amazon gift cards to replace that story! Worth $ 20,000 long term the Bitcoin price isnt rising because people are looking for that... For something that looks profitable today may be just a power-burner in a win congrats total mess without fighting WW3! Is today ( EUR and USD ), how come you do not own yours $ of! Power everywhere an awful means of trade have a mr money mustache bitcoin this is wealth! Harvest other peoples speculation and I dont know these numbers myself with this: Man, I use to. They mostly evade their share of tax via loopholes nature of Bitcoin and the other crypto-currencies are so years! The new field of cryptocurrencies, causing a totally rational purchase lack of manipulation know-it-all of! For nothing ) on the Kevin Rose podcast as well as all legal forms of private sales ie! Investors who buy Bitcoin without even understanding what Blockchain iswhich is just one in. Private sales ( ie often seems like there is no wealth and no trade without these things... Myself of the gold standard, be regarded as stupid forget about its other limitations Basket? and Stuff...

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