So Im going with no. Take risks, but keep educated and with good money management. That is a fairly dumb sock puppet, since he never spoke about them. Bitcoin is a universal currency and is not here to just replace your USD alone! Not going to do this with you.. Id like to address each. It isnt enough to live off of, but its definitely nice to have a net $500 or so in my pocket at the end of each month. The reason internet destroys industries (?? Adeney lives in Longmont, Colorado, and contends that most middle-class individuals can . @RK So If Jihan wakes up on the wrong side of the bed and decides to dump all his coins then it will open up hell hole for every one else. It is a good. I use purse.io to buy stuff from Amazon. A decentralised system where no human has the power to manipulate money supply is the best thing that any society can expect, to get its finances and economy in order. As has the MMM investing sub-furum. Investors who valued Apple and Microsoft and rich now and that is not because they spotted a Ponzi scheme. All these ICOs are just insane. Gotta! 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. I put my money where my mouth is! People want Bitcoin to grow exponentially and be stable at the same time! I agree Jay. US is just one country in this big bad world, and not vice versa! PS: Brent, you write that if earnings dont pan out, stock prices wont necessarily drop. Bitcoins etc does not make it easier at all. We have never in history had such expanding currency supply backed by NOTHING. No one controls it, so no one can rewrite the data. January 4, 2018, 2:35 pm. If you know anyone heavily vested in bitcoin, stay in touch with them. Cest la vie. No one person has control over it and that may end up being a good thing (people are corruptible). January 4, 2018, 7:36 am. Your highly emotional responses arent helping your case. Theres illegal activity in all its shapes and forms (ie. January 3, 2018, 4:51 pm. If you cant grasp the difference between the two, then by all means sink your capital into crypto-currencies as they are currently valued. Investing means buying an asset that actually creates products and services and cashflow for an extended period of time. Nixon just took away the last vestiges of the gold standard. January 3, 2018, 4:34 pm. Crypto is here to stay albeit probably not at insane prices. Just Keep Calm, and Keep Investing Despite all of this hype and all the froth in stock prices, a true investor's plan can remain stable through the seasons. But yes, I would not invest in crypto currency. I believe the current Cryptocurrency investment mania is a huge waste of human energy, and our rate of waste has been growing exponentially. Hell isnt that why we are here in the first place? The big players in China use hydroelectric power. Ms. Frugal Asian Finance Bond prices werent historically low in those other cases and Shiller PE has been high for basically ever since the guy invented it. obsolete. Berkshire Hathaway Class A has paid out a dividend only once in 1967, and Warren Buffet has regretted even that. 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? Retweet. I was kinda hoping he'd mention if his frugality was a factor or not. Mostly: Its shiny and pretty and makes great jewelry and chicks dig it. 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. Bitcoin mania isnt different from the dot.com mania or any other mania going back to the tulip mania. Publicly verifiable voting as well, when the chains are worth trillions. The ones that take off will likely be govt created versions. I was so sad that I missed out again ;). Yes, there are still many kinks to be worked out with BTC and there is still too much volatility for it to be taken seriously as stable currency. It is the main currency by which you can obtain other cryptocurrencies. Oh my gosh, get out! (Its also very hard to make jewelry out of. Christopher R Young Consensus over its value. Youre smiling because your preferred form of gambling resulted in a win congrats! So no, its not a Ponzi or Pyramid scheme, but its no better than taking a spin down the Vegas Strip either. If it was instead patentable Id buy some stock in the holder. Its a huge money maker if you can bet that youre not the bigger fool. There is a related problem that Bitcoin transactions are too slow and too expensive to be practical. I have seen several bubbles grow and then burst, and one thing you learn is that an actual bubble rises like crazy and then totally pops. (based on July 20th blog post) Started by caracarn. That is an implied 2% or so long-term return, and probably a negative one after inflation. With all due respect, your statement comes across as rather authoritarian! Most of this money is being spent on military operations to secure foreign resources and kill people will dissenting viewpoints in the name of national security. Your question was answered. 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. Im more inclined to trust contracts that cannot be broken. Like every state currency, it derives its worth out of the fact that the state says you can *always* pay your taxes with it We end up in Utopia? For those saying specific instances of cryptocurrency do not have long-term potential (Bitcoin, Ethereum, Litecoin, Monero, etc), the network effect is a force to be reckoned with. Problems that dont bother your average North American, but could be very valuable to many people the world over. Marketed to unsophisticated investors as a get-rich-quick scheme. Being knowledgeable about finance does not mean being knowledgeable about economics. January 2, 2018, 7:05 pm. Pretty much. Get listed and sell some shares. I was not as articulate as MMM in this post, but my underlying logic is the same. Do you fault coffee or corn or wheat for being non-productive, or do you appreciate them as goods, at an appropriate price? In a world of human trust, putting the wisest and most respected people in a position of Adult Supervision is a useful tactic. :) https://www.youtube.com/watch?v=g-zIbVEjVpQ, Another great satire- Seth Myers take in bitcoin. The bidding up of prices in pursuit of speculative riches is not fine. Do you practice illegal tax evasion as your primary wealth strategy? Because I think they dont want to devalue the money too fast. A network like bitcoin that possesses millons of users and consists of billions of dollars of wealth means that in times of crisis around the world, the network itself can provide relief to anyone without discrimination. Justin C As a result, the benefits of human progress are not reflected in our moneys purchasing power. January 4, 2018, 7:42 am. Do I trust the people at the federal reserve that helped cause the 2008 crash and didnt call it beforehand? Broadband. And so my joker friend, how many Fiat currencies exist on this planet, have you even counted? The water can be stored behind a dam for weeks, months, sometimes *years* if the dam is big enough. You should have just invested in winning lottery tickets instead of bitcoin, they have had a much much higher rate of return. Nothing wrong with speculation, as long as you are doing so responsibly and understand the risks. The real test of if you should be a cryptocurrency supporter:would you be exactly as passionate and spend the same amount of time thinking about it,if Bitcoin were still an obscure piece of code, worth less than one cent, and offered no chance of ever earning you any money? Firstly, if Jihan is that rich, its probably because he doesnt spend his money. 2. But thats just the software side (Blockchain). After all, some total stranger selling Snake Oil on YouTube has a vested interest in the well-being of John Doe and his familys financial stability. Alright, time for a thought experiment. Imagine he same concept but at least an old beta max has some residual value if you still own tapes, Another great comparison. The value of bitcoin is very far removed from any sensible fundamental valuation, and the thing driving up the price seems to be a common sense that it will be worth more in the future. Anyway, if your argument were correctwhich it partially isthen you of all people should be against fiat money systems like the US dollar in its current form. The only reason the dollar is working as money is because it started out with gold backing and then they gradually removed the backing. Bitcoin is not a bubble, its the pin :), Not looking so good right now Some of them may be insane purchases at some prices and very sane purchases at other prices. So long as you have the self control / personality to only invest what you can easily afford to lose and to not let it consume your time and energy (not true of most people but more so mustachians) then there seems to be a potentially large upside. If you feel comfortable developing your own metrics with which to gauge coins and want to invest in projects long term, you can. However EVERY SINGLE BITCOIN TRANSACTION IS PERMANENTLY RECORDED AND TRACEABLE. Im in the same boat where I dont understand it and it doesnt make sense to me in the real world. How much of your net worth is in this investment? Its a speculation, pretty much like buying gold. Many are trying to perfect it but until there is a clear winner, different ones will emerge. Rule of thumb is never put everything in one basket. They may settle to much less, or get close to zero, or they may grow more, no one can really predict this. The comment about 1999 investors didnt receive their investment back from stocks until this year well, for the rest of us that dont invest 100% of our money in the stock market in one instance AND we reinvest dividends, this type of situation is almost impossible. My gosh, where do you these people come from? Big banks get crushed, millions of americans were underwater on their homes and forces to foreclose and then they get a bailout from the US of A paid for by yours truly, the average american tax payer. Another intelligent case by highly experienced crypto business lawyer Preston Byrne. But if that is the case, then it is far less irrational than are dollar bills, especially over long periods of time. Bitcoins are all the same, they are not numbered, they dont rot and dont have a shelf life. Are you for real? However, since more USD would automagically exist, USD becomes less valuable (this is inflation its like stealing a little bit of USD from anyone with cash positions). Is it speculation, sure, but its no different that speculating on the future price of a stock, or oil, or the rental market. Videos about Personal Finance, Early Retirement, and Other Stuff. Your risk is your own, but understand that bitcoin is gambling. Today, 20 years down the road you are watching 4K videos on it! Wow, you really have no idea how hydroelectric power works. Sure.. that is until the government keep printing it until its worthless. Its hard to quantify the lost energy and human potential, but the cost is real. . 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. It needs to expand with the supply of goods and services in the world, otherwise we end up with deflation and hoarding. I dont think attacking how Bitcoin is being used is a good argument because of this. January 2, 2018, 9:18 pm, MMM, heres a calculator that updates to show the real time profitability of mining various coins: That is wrong. > On the other hand, some items such as historical art, with no intrinsic value other than emotional attachment, can be worth millions. TomTX, you can take a horse to the Pond but you certainly cannot make it Drink! Also, just because something is open-source does not mean it cant be valuable. Today, Jan 26, at 11:30 AM, its trading around $31,850. Hurry! Its not going to consume ALL the worlds energy? Thats why its unwise to go all-in on something just because its going up. 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.). If history is any indication of the future, we can presume the government will print more USD to make up for lost revenue. Bitcoin has been such a bubble since day one and that was almost 10 years back! The Internet has become insufferable with all of these Bitcoin Clowns. Cmon people its not rocket science. But youre entitled to your opinion nonetheless. It just means that some price levels are reasonable, and some are not. So theres a positive feedback loop here. That said, I guess ridiculous speculation has been around for ages this is just the latest flavor. You cannot have blockchain without bitcoin. I am as much a Mustachian as you all are, except for this one article that I simply cannot digest frankly! How many do you need? We live in a world where both can, do and will exist. January 3, 2018, 8:02 am. Bitcoin CANNOT shelter you, pay dividends nor feed you. So, we usually get $100 to $200 worth of stuff all at once. You know what else they have at bars? https://twitter.com/SunnyStartups/status/946711941250273280/photo/1?ref_src=twsrc%5Etfw&ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Findia-falsely-condemns-bitcoin-as-ponzi-scheme-flawed-logic, A man is not a financial plan Bitcoin is the longest existing algorithm and has proven to be safe and capable of remaining decentralized (arguable). This is no different from rich wall street people and government controlling fiat currency. Gox, Bitfinex, and the various wallets and exchanges that have been hacked). 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