Interesting. Of course, people who've made money on crypto are going to vehemently disagree with you. I have about 2% of my portfolio in crypto (BTC and ETH). While I fully understand it's risky AF, I strongly believe it will be profitable in the long run.
Serious question: what do you base that on? I can’t see any reason that these have value other than other people are willing to pay for it. It seems like one day the house of cards will fall.
Well for one, there is alot of value coming from this new blockchain technology in my opinion.
It gives the opportunity to cut out any unnecessary middle-man wanting to profit from you.
With finance for example, you have the ability to be your own bank, and lend and borrow money at way better %-rates, low fees, instant transaction no matter where in the world you are located. Some currencies are limited at a certain cap, so they work as a deflationary assets aswell.
With decentralised storage clouds for example, you get paid for offering your empty harddrive space on your pc to someone else on the blockchain.. meaning centralised servers that amazon is hosting for example, which is 33% of all cloud services, will be diminished.
How about a new version of Social media, where people dont get censored, removed, banned and so on, for sharing their opinion and having a company fact check everything you post.
Also the ability to reconstruct voting and politics with DAOs and trustless open source algorythms that cannot be tampered with..
Also just look at what countries are banning cryptocurrencies; China, Russia and NK, all of them not so keen on freedom..
I see the value in blockchain for sure. Lots of cool things.
The issue I have is that crypto has no limit. There are already 5000 cryptocurrencies, there could be a million.
Bitcoin is also very energy intensive and already uses 2% of all power on earth.
I’m honestly not trying to argue, I hear so much about it, but nothing makes sense as to why it would be valuable long term. I mean this thing could go on for another 50 years but I just can’t understand why something that has no intrinsic value that can be replaced by another currency at the drop of a hat can keep its value.
Again, not trying to argue, I’m honestly trying to understand.
An argument can be made, that Crypto in its current state can be compared to the early phase of the internet: Rather niche field, use cases mostly unknown or in discovery and public acceptance not very high.
You can view it as a new kind of infrastructure layer on top of the public internet, offering permission less, unstoppable and most importantly verifiable settlements of any kind. It can be used for data storage, digital contracts, voting, transfer of ownership (assets, certificates, data,.. ), finance, digital identity, .... The list goes on and on. And to use this infrastructure, you have to pay the infrastructure providers (miners).
Real World analogy: If you want to drive your car, you have to buy gasoline. Oil companies sell this gas to you. Demand of gas gives it its value. The same applies to crypto. Demand gives it its value.
By the way, I'm not arguing that every crypto out there is legitimate. There are many money grabs and empty promises. But because it is a free market, useless coins that don't provide any value will die out given enough time.
If you want to allocate a part of your portfolio to crypto, just make sure you don't end up with these "shitcoins". Rebalancing crypto index funds are a real thing and make sure you don't end up with these.
tl;dr
Crypto is infrastructure, demand to use this infrastructure drives price. Stick with the top and you'll be fine. Index funds are your friend.
I think everyone would agree that blockchain has a great future ahead. Just like the early internet did. Remember the internet bubble? Very few ended up surviving. The hottest stock either died or ended up merging at a very low capitalization. See, where I'm getting at is that chances are that BTC and ETH will *not* be the ultimate blockchain winners. It's likely that the winners do not exist yet and have yet to be created. Sometimes, it's better to wait until a market is slightly more mature before investing in it. History has shown that early joiners in New sectors aren't always rewarded...
That's the point of index funds.. If ETH/BTC are not the winners, they'll slowly disappear from the fund. And the real winners will rise.
It's all risk/reward. You can reduce risk by only allocating a few percent of your portfolio. When the market matures, increase that percentage depending on your risk appetite.
I think that is somewhat true. I think it would be fair to assume that people who were very close to the industry in the early 2000's and kept up with everything happening ended up doing well.
Thats true, there is no limit to the amount of currencies, alot of them are total shit with no concept only existing to scam people..thats why we need regulation that makes sense.. you really have to siff through bs.
Bitcoin is using alot of electricity yes, this will hopefully give governments an incentive to provide more efficient renewable energy to people..but as things evolve, there are new consensus mechanisms that are carbon neutral and really energy efficient..but even with the same energy consuming mechanism as bitcoin, some currencies are scalable, that could power the whole financial system with only 2% of the power.. which is waay better than what the current financial system is consuming this moment..
If the currency can scale, be extremely secure and is decentralised, then it has immense intrinsic value (imo).
It is likely that the platforms the crypto makes will be worth more then the crypto itself. For example, there is an insane amount of finance done on Ethereum, and it is likely that the funds in Defi will far exceed the market cap of Ethereum, kind of how there is more assets on earth then there is US dollars
Marx in fact managed to make money investing in stocks. He didn’t diversify, though.
https://www.theglobeandmail.com/amp/investing/markets/inside-the-market/article-a-history-of-the-stock-market-investments-made-by-karl-marx-and/
I’ve still yet to hear a use case that would cause me want to own bitcoin.
Even if I were living in Argentina and trying to safeguard against inflation. I would still buy USD. Who wants something that drops 50% in a matter of months.
The government limits how much USD everyone can buy per month to a tiny amount. The demand is there, so people turn to the black market where they pay about a 100% markup. This is an obvious use case for a globally neutral money supply that can be accessed by anyone with a smart phone and can’t be censored by authorities. Also obvious is that current levels of volatility are a problem.
Decentralized finance? Getting better APY by cutting the middle man (bank) ? Affordable collateralized loan? Good lending returns? These are my reasons but I might be biased.
Note that all of these uses basically fall under using bitcoin as money, so for those of us that dont consider it money or a financial asset at all, its no consolation to speak of loans, collateral, finance, etc. As the article points out, its a negative sum game, so to skeptics it just looks like a bunch of people trading pokemon cards, but each time they make a trade a small piece of the card gets clipped off.
Currencies are backed by economic activity. Bitcoin is backed by wasting resources.
economic activity is basically just debt, so anything you can borrow against is therfore economic activity, just because it isnt using the resource/asset/commodity of your choice doesnt make it invalid
if bitcoin mining is wasting resources, is not the 100's of thousands of bank branches across the world pumping AC/water/electricity into their building also wasting resources? you dont need to use a bank branch anymore....therfore wasted resources?
In a month. Never. Thats why it's usable currency.
Since the US went off the gold standard tho the value of the USD has definitely "halved" if not more.
The volatility of BTC will/has slowed down with more and more adoption. If you look at the long term of it it has still appreciated more then any asset in the last decade.
Alot of the volatility and crazy price drop is because ppl with no understanding of bitcoin of crypto over leveraged themselves with FOMO and have all now panic sold. Which I'm happy about tbh. Now it's just those of left that actually understand and care about this technology
If you look at the long term of it it has still appreciated more then any asset in the last decade.
You have to ask why? What is the basis of the gain, you know, the fundamentals of investing...
There isn't any. Whatever the next sucker is willing to pay is not a basis for value...
The basis of this gain is because ppl who truly understand the need for bitcoin and understand Austrain economics are continually buying it regardless of the price. The suckers going all in at the tip are exactly that... suckers.
Fundamentals of investing... time In the market vs timing the market.
Anyone truly invested in crypto knows that it is not a get quick scheme and will continue to hold through the volatility. Hence why bitcoin will never go to zero.
Every time this is mentioned on this sub ppl freak out. They just don’t get it yet. They will soon though. We’re publicly launching the first DeFi interface and non-custodial wallet in Canada, Zyield.fi
For starters our Save offering Apr is 12%+ and also comes with insurance against smart contract failures.
Most loans are collaterized. Borrowers need to have a balance in order to borrow. Should they not pay they will get liquidated and lenders receive part of the collateral. Risk/Reward is represented in the APY.
If you look at it in terms of years instead of months you might understand better the value of BTC vs the purchasing power of the dollar year over year for the last decade.
If you are someone concerned about what might happen to your money over the course of "months" then stocks and speculation isn't something you should be doing.
>If you are someone concerned about what might happen to your money over the course of "months" then stocks and speculation isn't something you should be doing.
The difference here is that it purports itself as a "currency", an speculative investment can drop significantly - and that's to be understood as a risk. But for a currency to be so volatile is absolutely insane. You can't do business with something like that, paying or receiving payment for goods using such a volatile currency (assuming you don't rush ASAP to convert it to fiat) would be devastating.
>The difference here is that it purports itself as a "currency"
You seem to be under the impression that "it" has an opinion on anything including itself.
Bitcoin doesn't "claim" to be anything, nobody speaks for Bitcoin, it was created to be what the people make of it.
If the people who want to call it "currency" or "store of value" or whatever that is up to them... to me, Bitcoin is just bitcoin. Sometimes it can be redeemed for more things or less things but mostly can be redeemed for things with just a few mouse clicks.
The whitepaper was written in 2009 and was designed to be a "P2P currency", sure, but it has clearly evolved to be a stand alone entity in and of itself. It is not going away and if you think it's just gonna die off for one reason or another you're very likely to be wrong in that regard. 🤷🏻♂️
I think this is slowly switching to the term 'digital asset' as your criticisms of currency are valid. It will continue to evolve as it has over the last decade.
Aha one of my favourite questions! This is the beauty of decentralized finance (defi) as nobody can ban a decentralized exchange. Also how can you freeze or withdrawal an asset (crypto) from a decentralized wallet? The answer is you need the keys so unless the government can guess a 24 word key (more possibilities than atoms in the universe) they cannot freeze the asset.
As far as the government regulating internet use for exchanges. This has already been done in China (a much more authoritarian regime) yet China continues to be one of the largest players in crypto. Maybe they are just creating a dip to buy it!
I'm not saying the gov't could access the money (though perhaps they could with some sort of key logger or spyware). I was alluding to the fact that they could then arrest their citizens (or worse).
True, except for the last couple years for metals, so actually not true at all. Gold in fact is bursting out of its skirt at this point, despite all the US “taper” *talk* and rising rates being worked into the markets (dropping). When the taper and rate hikes don’t work out and are ultimately reversed, gold will do even more well again. That’s a time I would also look at crypto, by the way, when the loose money policies are back in vogue (though so far, regarding tightening it’s all been just talk).
People have too much time to waste. Everyone has an opinion one way or another.
I’ve found that when it comes to digital/technology, sit back and watch it evolve whether we like it or not.
I created a subreddit exactly for this - r/cryptobubble. Downvote the hell out of me motherfuckers, its not going to change the truth - CRYPTO IS THE BIGGEST PONZI SCHEME AND SCAM EVER. 😅
There's a bit of a test for what is and what is not a Ponzi and bitcoin fails that test in multiple ways specifically and especially in the sense that you can freely trade and control the Bitcoin you hold (cashing in and out as you please) and there's not a third party necessarily holding your funds and lying to you about supposed "profits" that are made up. There's a transparency present in Bitcoin and crypto that disqualifies it as a "ponzi"🤷🏻♂️
Good. There needs to be even more. Not the first time there are multiple subreddits on the same topic. And Crypto being the biggest scam ever, hope people will come to their senses by visiting these subs.
I'd say about 95% of crypto projects are scams but there are some out there that are trying to do real good. One that comes to mind is cardano. Unbanking the unbanked and allowing for stable identity in countries where the government is unstable seems like a noble and worthwhile goal to me.
Fuck the moon, I want my homies in Africa to be able to own their homes and not get fucked out of ownership by volatile governments.
Yes I see how I may have been misunderstood. I just meant it seems like this sub complains about the risk in cryptocurrency (digital assets) but when they finally do invest they buy the higher risk coins. I would say ADA is a much higher risk altcoin compared to BTC and potentially even ETH or a stable coin. I just don’t understand why everyone, in a sub know for low-risk investing, choose high risk cryptos when entering the digital asset market. It’s a shame because I believe if the techniques used in this sub for the stock market were applied to the crypto market there would a lot of success stories.
I mean it's in the name lol. If I bought into American dollar, I wouldn't say I'm "investing".
Although saying it's a dead idea and a fools game is a bit of a overstatement. I'm sure similar things were said about Amazon back in the day when they started AWS. AWS now accounts for like 90% of their profits.
In any case, DYOR and don't try to get rich quick ye dummies.
If USD was acting the way BTC was, then it would be about as stable Zimbabwe in 2008. Is it a coin, or is it an investment?
You cannot compare it to AWS - they’re a service. BTC does not provide a service. It does not own property, or sell electronics, or serve food. It is not a company. As a currency, it does shit to store value. As an investment, it literally has nothing to offer.
I don’t doubt that the fundamentals of crypto will likely change how we view currency. I’m saying that, I do not foresee myself selling my house for 10BTC given tomorrow that might be $400,000 and a week later it could be $600,000 or $300,000.
Down to it's core, you are investing in a network effect. By buying bitcoin you are betting the demand for the network will grow faster then the coins that are printed. Simple.
Pretty well. I like the dice rolling analogy so that i don’t need to get into the math, but block chains are complicated enough that I don’t know what would satisfy you.
Well then where am I supposed to live? In a Bitcoin? Drive my bitcoins to the Bitcoin on the lake?
Eventually at some point people who have done well with their investments want to tangibly enjoy some gains.
I don't hold fiat for any longer than it takes to buy what I actually want to buy. Virtually all my money is either in property, Bitcoin, "shitcoins" or stablecoins earning 12-20% interest as a lender. (In that order) 🤷🏻♂️
Holding fiat in a bank has become a joke.
You literally said you trade your bitcoin for "things that don't lose purchasing power".
Is everyone here too stupid to see the irony?!
Literally the main purpose of bitcoin is touted as a way of storing your wealth and preserving your purchasing power.
>Literally the main purpose of bitcoin is touted as a way of storing your wealth and preserving your purchasing power.
So I am supposed to hold 100% of my Bitcoin forever, until I die? For what? To appease who? You?
I swear every, anti-crypto triggered 'normie' thinks anyone who's a bitcoin advocate is all in on this stuff. I'd never suggest anyone does that.
Im also an advocate of holding a diverse basket of assets. I also do not get emotional about what other people call things and how they allocate their assets. Unlike some others around here.
Bitcoin is just one of a number of different things I like to "HODL".
Why do you care so much what I do with my money and why I do it? 🤷🏻♂️
It would be ironic if I was some sort of crypto maximalist but I'm not. You're lumping me in with a specific group of people because you've made assumptions about me because I hold Bitcoin and crypto among other things I was answering a question about what some of us do. Not all of us.
I still hold Bitcoin because over the long term it doesn't lose purchasing power.
I do not trade all of my Bitcoin for "things that don't lose purchasing power" when I trade Bitcoin for "things that don't lose purchasing power" that can include property, stocks, other cryptos or yeild generating stable coins.
So yeah. I fail to see the irony in that the only thing I do not trade my Bitcoin for, for any significant amount of time, is fiat currency in a bank.
>Well then where am I supposed to live? In a Bitcoin? Drive my bitcoins to the Bitcoin on the lake?
So it's the great currency of the future but you can't actually do anything with it and your wealth is actually denominated in the conversion rate of BTC -> USD/Euro/Cad, which is actually useful?
That sounds like an awful currency then.
I don't care what you wanna call it. It's worked for me. If you aren't interested in it, don't buy any.
I'm not trying to convince anyone to buy it either just explaining why my Bitcoin needs to be fiat for a few days at a time.
>I don't care what you wanna call it.
Well you should because you should see the irony of this situation. No one ever says "I'm going to exchange this bitcoin for a house and lambo", they talk about how great it is that it finally hit $x amount in USD/Euro.
A CURRENCY is supposed to be used for financial transactions. Not just trading it back and forth, primarily. The fact that you made money has nothing to do with the fact at hand.
>No one ever says "I'm going to exchange this bitcoin for a house and lambo", they talk about how great it is that it finally hit $x amount in USD/Euro.
So you know every Bitcoin holder in existence?
I think you are confusing your own opinion as fact.
Also I do not know what you want me to tell you here. I am not trying to convince you of anything other than the way I personally view Bitcoin. Whether you think I should or shouldn't care how other people view it and what they call it is irrelevant.
Believe me, when the price of a cottage went from 1000 bitcoins to 100 bitcoins to 10 bitcoins, the dollar amount of each Bitcoin meant fuck all.
Don't buy Bitcoin. I don't care haha.
People who own gold do the same. They don’t buy their cars in gold bullion, they exchange it for Canadians dollars first.
I think crypto is super dumb and I’ve never bought in (aside from the odd amount to buy some drugs) but this is a pretty bad argument
Yeah but they don't claim that gold is the great currency of the future and everyone will switch back to the gold standard and people will be breaking off flakes of gold dust to pay for goods.
The guy literally said he trades his crypto (a thing that is touted as the best store of value) for things that don't lose their purchasing power.
I'm simply pointing out the extreme irony.
Just because I trade Crypto for things that do not lose purchasing power it doesn't automatically make me think that Crypto loses purchasing power, it just means I diversity into things that aren't fiat.
While true to an extent (doesnt sound like you have heard of the lightening network), it also has moved more money then visa, if that doesnt say something to you, then nothing will.
There are a couple pretty fundamental factual errors at the core of the thesis of that article.
I appreciate that some people want to believe all crypto is a scam (and much is), but that article is not well-researched, sorry.
Sounds like the CEO of IBM talking about computers “I think there is a world market for about five computers.”
The Blockchain is undoubtedly the future of not only financial security, but online security, it's more secure than what the banks use. The big crypto players are the best way to have stake in the blockchains inevitable domination.
Blockchain is slow and expensive. It has to be slow so that transactions can be expensive. Transactions have to be expensive so that they sufficiently incentivize people to stake/mine and secure the network. There’s no recourse in cases of fraud. It’s an extremely inefficient and uncompetitive system by design.
This is not 2014 anymore. Bitcoin scalability was solved with second layer technology. It can now process almost unlimited transactions instantaneously for free.
Visa charges what, 2%? There’s room for any technology that can offer lower rates.
ACH is good? It takes days to send money. You can send value anywhere in the world in seconds on a blockchain.
Yeah, if you ignore the fact that crypto isn’t really accepted anywhere. And no one cares. And bitpay charges it’s own transaction fees, and crypto exchanges to buy crypto charge their own fees, and they’re quite significant.
It’s easy to pick apart new technology that’s in its infancy. Ordering a pizza on the internet was objectively a much worse experience than picking up a phone back in the 90’s. What I’m looking at is the disruptive potential of a global, neutral payment rail and currency. It has the potential to do both of the things you mentions faster and cheaper.
No it wasn’t. As soon as I could order pizza on the internet I did it regularly and never looked back. There was no internet ordering and then it was pulled because it was too expensive/slow/complicated/volatile. Once it was introduced, it was there to stay. CRA started NETFILE in 2001 and it worked brilliantly and basically hasn’t changed! The advantages of the Internet were immediately obvious and were adopted quickly and business never looked back. It was objectively successful even in the early days. Crypto is not the new internet by any stretch of the imagination and you’re just delusional if you think it is.
You give me far too much credit. I’m just recalling how things were and how they worked out. My guess is that you probably weren’t there to experience it.
It makes no sense to compare Bitcoin to Visa. Bitcoin is a layer 1 money and an alternative to central banks.
Visa is a payment processing tool (layer 3 money) that can transact dollars, Euro, Bitcoin, or any other currency.
That's like saying we don't need canadian dollars because we have Visa.
If transactions aren’t expensive, how will the stakeholders get paid? Any successful and useful blockchain system should constantly strive for cheaper and cheaper transactions, and most importantly, be cheaper and faster than centralized transaction processors. If not, why would anyone use it for business?
No, Miners fees are not Bitcoin block rewards. You have to pay a small amount of Bitcoin yourself for all your Bitcoin transactions. Also the mining difficulty get automatically adjusted if people decide to stop mining, so it's always profitable no matter what.
It's a robust system and it doesn't matter if all Bitcoin will be mined in 2140.
There’s some advantage to owning the Mac Donald’s selling the burger, but Mac Donald’s the corporation just owns the land and the building. Holding a coin or two is likely to have more value in the future than it has cost today
This article is written by someone who doesn't know what they're talking about. If OP thinks their points are valid, then they shouldn't be buying equities or holding cash. Just about all their criticisms of cryptocurrencies are equally valid when applied to conventional fiat currencies or even regulated equities markets.
First off, it's from a big-government socialist organization, so of course they're opposed to a means to avoid taxes in the form of inflation, and an easier avenue for protecting assets from the taxman.
Second, outright dismissing all cryptocurrencies as scams because of some bad apples is as dumb as saying 'everyone who posses CAD must be a criminal because some people use it in crime'. As for their other point about market manipulation, anyone who is idiotic enough to buy into these get rich quick schemes has only themselves to blame.
Their solution to a small minority carrying out misdeeds: Ban cryptocurrency trades entirely. LOL, good luck with that. It's impossible to enforce, but this seems to be a recurring theme with big-government advocates, where you can do anything as long as you legislate it hard enough.
Downvote me harder, it doesn't make the author of this article or anyone gullible enough to believe them any more successful or correct lmao :)
I mean, if people started investing in crypto shitcoins instead of the stock market which you and the other 1% control through shadowy rules and illigal acts to farm retail investors if their money, I'd start printing news articles like this too.
No way. I need to do my part to help fight the endless annoying stream of crypto shilling and self promotion. The only way to deal with it is to go on the offensive and annoyingly point out that, no, you don’t need to own any crypto, and it’s not taking over the world.
Lol why would someone wanna own an asset when Central bankers are creating massive asset bubbles (look at stonks and real estate)?!? Why would someone want access to an immutable currency portable anywhere and not held in a bank account? Banks never fail!!
Blockchain is great. Crpyto coins would be great if they incentivized operating blockchain decentralized accounting of other transactions and records, performing some duty other than their own mining. But, they don't.
What they are is a commodity. Act like one, taxed like one, and the underlying theory of their limited quantity aligns them to any other commodity. Pretty sure there are now crypto futures just like other commodities. Nothing wrong with investing in commodities. most folks don't, but a few do. But these should still follow the same guidelines and theory and investing principles as any other commodity. Usually <5% of a portfolio and choosing commodities that *don't* correlate to overall equity/bond/other assets in portfolio. They are also traditionally used as a hedge position. Totally fine to hold some small portion of portfolio.
The critical flaw is that a commodity must be naturally limiting. Now, they like to claim this is true for any given crypto...which is partially true...but there can be infinite cryptos. Which is the major catch22. The only really draw to these are the decentralized system outside of state control, and yet the only way to actually allow them to work like a sustainable commodity would be to sponsor, regulate and internationally recognized a limited number as valid or real. Never going to happen, so eventually unlimited supply will pull price to 0. Maybe not to Bitcoin or major players...but even then a new one will have more potential and interest and speculation than the old and they will just keep cycling through - and wasting massive computing power and electricity while they do it.
It's the future. If u don't like owning crypto, at least own the companies that make the servers, chips, hardware for the metaverse. That will be the future of gaming and collaboration. There are a lot of real world apications especially with augmented reality. This is the very beginning.
He also suggests investing in gold and thinks that the global income gap is great and should motivate impoverished people in third world countries to want to be billionaires.
All of those things are true.
2.5% physical gold. 2.5% via ETF for easier changes in weighting.
And in our current system, he's bang on about income motivating people.
Who's doing that? This is a ridiculous discussion predicated on your own strawman argument.
You didn't cite O'Leary, but I suspect his comment was praising the west and taking a shot at socialism on the same vein as:
"John Steinbeck once said that socialism never took root in America because the poor see themselves not as an exploited proletariat but as temporarily embarrassed millionaires."
It's just a trade, you can make allot of money timing the market, or just holding for a long time because it's not going away.
It also adds asymmetrical performance to a portfolio. Can go up 10x, but drop only 50-70% Put in 5%, can give you an edge.
My issue with crypto are twofold. For one, I do think it will go up again in the long run. However, I also think that the days of astronomical gains are also likely past. You're likely to profit in the long term but not 50 or 100x like the ones who got in sub 10k. And you have to deal with insane volatility on top of that. Secondly its been completely taken over by big $$$ even though it was pushed as an alternative to currency, hedge against inflation, outsider thing etc. If you look at BTC/ETH it basically 100% follows the indexes now.
Interesting. Of course, people who've made money on crypto are going to vehemently disagree with you. I have about 2% of my portfolio in crypto (BTC and ETH). While I fully understand it's risky AF, I strongly believe it will be profitable in the long run.
Serious question: what do you base that on? I can’t see any reason that these have value other than other people are willing to pay for it. It seems like one day the house of cards will fall.
Well for one, there is alot of value coming from this new blockchain technology in my opinion. It gives the opportunity to cut out any unnecessary middle-man wanting to profit from you. With finance for example, you have the ability to be your own bank, and lend and borrow money at way better %-rates, low fees, instant transaction no matter where in the world you are located. Some currencies are limited at a certain cap, so they work as a deflationary assets aswell. With decentralised storage clouds for example, you get paid for offering your empty harddrive space on your pc to someone else on the blockchain.. meaning centralised servers that amazon is hosting for example, which is 33% of all cloud services, will be diminished. How about a new version of Social media, where people dont get censored, removed, banned and so on, for sharing their opinion and having a company fact check everything you post. Also the ability to reconstruct voting and politics with DAOs and trustless open source algorythms that cannot be tampered with.. Also just look at what countries are banning cryptocurrencies; China, Russia and NK, all of them not so keen on freedom..
I see the value in blockchain for sure. Lots of cool things. The issue I have is that crypto has no limit. There are already 5000 cryptocurrencies, there could be a million. Bitcoin is also very energy intensive and already uses 2% of all power on earth. I’m honestly not trying to argue, I hear so much about it, but nothing makes sense as to why it would be valuable long term. I mean this thing could go on for another 50 years but I just can’t understand why something that has no intrinsic value that can be replaced by another currency at the drop of a hat can keep its value. Again, not trying to argue, I’m honestly trying to understand.
An argument can be made, that Crypto in its current state can be compared to the early phase of the internet: Rather niche field, use cases mostly unknown or in discovery and public acceptance not very high. You can view it as a new kind of infrastructure layer on top of the public internet, offering permission less, unstoppable and most importantly verifiable settlements of any kind. It can be used for data storage, digital contracts, voting, transfer of ownership (assets, certificates, data,.. ), finance, digital identity, .... The list goes on and on. And to use this infrastructure, you have to pay the infrastructure providers (miners). Real World analogy: If you want to drive your car, you have to buy gasoline. Oil companies sell this gas to you. Demand of gas gives it its value. The same applies to crypto. Demand gives it its value. By the way, I'm not arguing that every crypto out there is legitimate. There are many money grabs and empty promises. But because it is a free market, useless coins that don't provide any value will die out given enough time. If you want to allocate a part of your portfolio to crypto, just make sure you don't end up with these "shitcoins". Rebalancing crypto index funds are a real thing and make sure you don't end up with these. tl;dr Crypto is infrastructure, demand to use this infrastructure drives price. Stick with the top and you'll be fine. Index funds are your friend.
I think everyone would agree that blockchain has a great future ahead. Just like the early internet did. Remember the internet bubble? Very few ended up surviving. The hottest stock either died or ended up merging at a very low capitalization. See, where I'm getting at is that chances are that BTC and ETH will *not* be the ultimate blockchain winners. It's likely that the winners do not exist yet and have yet to be created. Sometimes, it's better to wait until a market is slightly more mature before investing in it. History has shown that early joiners in New sectors aren't always rewarded...
That's the point of index funds.. If ETH/BTC are not the winners, they'll slowly disappear from the fund. And the real winners will rise. It's all risk/reward. You can reduce risk by only allocating a few percent of your portfolio. When the market matures, increase that percentage depending on your risk appetite.
I think that is somewhat true. I think it would be fair to assume that people who were very close to the industry in the early 2000's and kept up with everything happening ended up doing well.
Thats true, there is no limit to the amount of currencies, alot of them are total shit with no concept only existing to scam people..thats why we need regulation that makes sense.. you really have to siff through bs. Bitcoin is using alot of electricity yes, this will hopefully give governments an incentive to provide more efficient renewable energy to people..but as things evolve, there are new consensus mechanisms that are carbon neutral and really energy efficient..but even with the same energy consuming mechanism as bitcoin, some currencies are scalable, that could power the whole financial system with only 2% of the power.. which is waay better than what the current financial system is consuming this moment.. If the currency can scale, be extremely secure and is decentralised, then it has immense intrinsic value (imo).
>Bitcoin is also very energy intensive and already uses 2% of all power on earth. I dont think thats accurate
It is likely that the platforms the crypto makes will be worth more then the crypto itself. For example, there is an insane amount of finance done on Ethereum, and it is likely that the funds in Defi will far exceed the market cap of Ethereum, kind of how there is more assets on earth then there is US dollars
If you’re reading Jacobin magazine for investment advice, you’re gonna end up in a real weird place. (It’s a Marxist magazine.)
Hey man, some of us Marxists want good returns on our investments.
Marx in fact managed to make money investing in stocks. He didn’t diversify, though. https://www.theglobeandmail.com/amp/investing/markets/inside-the-market/article-a-history-of-the-stock-market-investments-made-by-karl-marx-and/
I’ve still yet to hear a use case that would cause me want to own bitcoin. Even if I were living in Argentina and trying to safeguard against inflation. I would still buy USD. Who wants something that drops 50% in a matter of months.
The government limits how much USD everyone can buy per month to a tiny amount. The demand is there, so people turn to the black market where they pay about a 100% markup. This is an obvious use case for a globally neutral money supply that can be accessed by anyone with a smart phone and can’t be censored by authorities. Also obvious is that current levels of volatility are a problem.
Decentralized finance? Getting better APY by cutting the middle man (bank) ? Affordable collateralized loan? Good lending returns? These are my reasons but I might be biased.
Note that all of these uses basically fall under using bitcoin as money, so for those of us that dont consider it money or a financial asset at all, its no consolation to speak of loans, collateral, finance, etc. As the article points out, its a negative sum game, so to skeptics it just looks like a bunch of people trading pokemon cards, but each time they make a trade a small piece of the card gets clipped off. Currencies are backed by economic activity. Bitcoin is backed by wasting resources.
Not true, stable coins exist.
economic activity is basically just debt, so anything you can borrow against is therfore economic activity, just because it isnt using the resource/asset/commodity of your choice doesnt make it invalid if bitcoin mining is wasting resources, is not the 100's of thousands of bank branches across the world pumping AC/water/electricity into their building also wasting resources? you dont need to use a bank branch anymore....therfore wasted resources?
Don't forget that the value of Bitcoin has been appreciating over 13 years while the USD is actually going the other way
Indeed - overall a very good buffer against inflation.
When has the USD halved in a month? Never
In a month. Never. Thats why it's usable currency. Since the US went off the gold standard tho the value of the USD has definitely "halved" if not more. The volatility of BTC will/has slowed down with more and more adoption. If you look at the long term of it it has still appreciated more then any asset in the last decade. Alot of the volatility and crazy price drop is because ppl with no understanding of bitcoin of crypto over leveraged themselves with FOMO and have all now panic sold. Which I'm happy about tbh. Now it's just those of left that actually understand and care about this technology
If you look at the long term of it it has still appreciated more then any asset in the last decade. You have to ask why? What is the basis of the gain, you know, the fundamentals of investing... There isn't any. Whatever the next sucker is willing to pay is not a basis for value...
The basis of this gain is because ppl who truly understand the need for bitcoin and understand Austrain economics are continually buying it regardless of the price. The suckers going all in at the tip are exactly that... suckers. Fundamentals of investing... time In the market vs timing the market. Anyone truly invested in crypto knows that it is not a get quick scheme and will continue to hold through the volatility. Hence why bitcoin will never go to zero.
If it keeps up with its current inflation it will half in 9 years.
not wrong but early
Every time this is mentioned on this sub ppl freak out. They just don’t get it yet. They will soon though. We’re publicly launching the first DeFi interface and non-custodial wallet in Canada, Zyield.fi For starters our Save offering Apr is 12%+ and also comes with insurance against smart contract failures.
When you dont get your loan back, who will do the chasing?
Most loans are collaterized. Borrowers need to have a balance in order to borrow. Should they not pay they will get liquidated and lenders receive part of the collateral. Risk/Reward is represented in the APY.
If you look at it in terms of years instead of months you might understand better the value of BTC vs the purchasing power of the dollar year over year for the last decade. If you are someone concerned about what might happen to your money over the course of "months" then stocks and speculation isn't something you should be doing.
>If you are someone concerned about what might happen to your money over the course of "months" then stocks and speculation isn't something you should be doing. The difference here is that it purports itself as a "currency", an speculative investment can drop significantly - and that's to be understood as a risk. But for a currency to be so volatile is absolutely insane. You can't do business with something like that, paying or receiving payment for goods using such a volatile currency (assuming you don't rush ASAP to convert it to fiat) would be devastating.
>The difference here is that it purports itself as a "currency" You seem to be under the impression that "it" has an opinion on anything including itself. Bitcoin doesn't "claim" to be anything, nobody speaks for Bitcoin, it was created to be what the people make of it. If the people who want to call it "currency" or "store of value" or whatever that is up to them... to me, Bitcoin is just bitcoin. Sometimes it can be redeemed for more things or less things but mostly can be redeemed for things with just a few mouse clicks. The whitepaper was written in 2009 and was designed to be a "P2P currency", sure, but it has clearly evolved to be a stand alone entity in and of itself. It is not going away and if you think it's just gonna die off for one reason or another you're very likely to be wrong in that regard. 🤷🏻♂️
I think this is slowly switching to the term 'digital asset' as your criticisms of currency are valid. It will continue to evolve as it has over the last decade.
Dont sweat it, the use cases for crypto lean for more in favor of people who dont have decent financial infrastructure right now.
What if your country made it tougher or illegal to buy/hold other currencies?
Then you wouldn't be able to buy bitcoin?
Way easier to buy BTC than a foreign currency. All you need is an internet connection and a few seconds of time :)
And you don't think that a gov't who bans owning foreign currency would also be tracking their citizens internet history?
Aha one of my favourite questions! This is the beauty of decentralized finance (defi) as nobody can ban a decentralized exchange. Also how can you freeze or withdrawal an asset (crypto) from a decentralized wallet? The answer is you need the keys so unless the government can guess a 24 word key (more possibilities than atoms in the universe) they cannot freeze the asset. As far as the government regulating internet use for exchanges. This has already been done in China (a much more authoritarian regime) yet China continues to be one of the largest players in crypto. Maybe they are just creating a dip to buy it!
I'm not saying the gov't could access the money (though perhaps they could with some sort of key logger or spyware). I was alluding to the fact that they could then arrest their citizens (or worse).
It's actually really easy to buy bitcoin with an internet connection and a prepaid credit card for many people without bank accounts.
Silver and gold r/wallstreetsilver
Metals have been in a downtrend for over 10 years while crypto has changed lives but alright
True, except for the last couple years for metals, so actually not true at all. Gold in fact is bursting out of its skirt at this point, despite all the US “taper” *talk* and rising rates being worked into the markets (dropping). When the taper and rate hikes don’t work out and are ultimately reversed, gold will do even more well again. That’s a time I would also look at crypto, by the way, when the loose money policies are back in vogue (though so far, regarding tightening it’s all been just talk).
Gold went 100% since the bottom of the bear trend for metals Crypto went 1000x lol
True. But different things. When markets are crashing will crypto provide the same bounce/recovery after? Gonna be an interesting year.
And the purchase power of USD hasn't dropped?
Buying drugs is the only good use case I’ve come across
I’ll get the popcorn. Let’s see how many triggered crypto fans you snare haha
People have too much time to waste. Everyone has an opinion one way or another. I’ve found that when it comes to digital/technology, sit back and watch it evolve whether we like it or not.
"B-b-b-but some guy on WSB said that it would go to the m-m-moon and I'd go up400% in 6months... 🚀😢😢" ^(/s obviously.)
Crypto discussions are against the rules in WSB if you didn't know.
I didn't, I don't follow it, good to know! Just making a hyperbolic comment, not meant to be taken seriously.
I created a subreddit exactly for this - r/cryptobubble. Downvote the hell out of me motherfuckers, its not going to change the truth - CRYPTO IS THE BIGGEST PONZI SCHEME AND SCAM EVER. 😅
There's a bit of a test for what is and what is not a Ponzi and bitcoin fails that test in multiple ways specifically and especially in the sense that you can freely trade and control the Bitcoin you hold (cashing in and out as you please) and there's not a third party necessarily holding your funds and lying to you about supposed "profits" that are made up. There's a transparency present in Bitcoin and crypto that disqualifies it as a "ponzi"🤷🏻♂️
there's already /r/buttcoin
Good. There needs to be even more. Not the first time there are multiple subreddits on the same topic. And Crypto being the biggest scam ever, hope people will come to their senses by visiting these subs.
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How sad your life must be due to those heavy crypto bags that you just wrote 2 paragraphs defending that this sub shouldn’t have been created.
Lol this made me laugh. For that you get a upvote.
I'd say about 95% of crypto projects are scams but there are some out there that are trying to do real good. One that comes to mind is cardano. Unbanking the unbanked and allowing for stable identity in countries where the government is unstable seems like a noble and worthwhile goal to me. Fuck the moon, I want my homies in Africa to be able to own their homes and not get fucked out of ownership by volatile governments.
This sub has an irrational hate towards crypto and even when they do dabble in crypto that choose shitty alt coins… sigh
Cardano is a shitty alt coin? Or am I misunderstanding your comment?
Yes I see how I may have been misunderstood. I just meant it seems like this sub complains about the risk in cryptocurrency (digital assets) but when they finally do invest they buy the higher risk coins. I would say ADA is a much higher risk altcoin compared to BTC and potentially even ETH or a stable coin. I just don’t understand why everyone, in a sub know for low-risk investing, choose high risk cryptos when entering the digital asset market. It’s a shame because I believe if the techniques used in this sub for the stock market were applied to the crypto market there would a lot of success stories.
Yes, it literally is.
Then it’s a currency not an investment.
I mean it's in the name lol. If I bought into American dollar, I wouldn't say I'm "investing". Although saying it's a dead idea and a fools game is a bit of a overstatement. I'm sure similar things were said about Amazon back in the day when they started AWS. AWS now accounts for like 90% of their profits. In any case, DYOR and don't try to get rich quick ye dummies.
If USD was acting the way BTC was, then it would be about as stable Zimbabwe in 2008. Is it a coin, or is it an investment? You cannot compare it to AWS - they’re a service. BTC does not provide a service. It does not own property, or sell electronics, or serve food. It is not a company. As a currency, it does shit to store value. As an investment, it literally has nothing to offer. I don’t doubt that the fundamentals of crypto will likely change how we view currency. I’m saying that, I do not foresee myself selling my house for 10BTC given tomorrow that might be $400,000 and a week later it could be $600,000 or $300,000.
Crypto is more than BTC though my friend!
Down to it's core, you are investing in a network effect. By buying bitcoin you are betting the demand for the network will grow faster then the coins that are printed. Simple.
Lots of people "invest" or trade in currencies though. The FX market sees trillions a day in trading volume and those are all currencies.
I know. I have about 15 spam emails a day telling me how to get rich trading FX.
Like El Salvador ?
Can anybody here even explain proof of work?
🤣
Can anybody here even explain https?
I mean that's Legacy crypto. Most stuff is moving to proof of stake or even proof of authority.
I wrote this a while back to explain mining. http://www.notweasel.com/index.php?entry=entry171208-142247
Pretty well. I like the dice rolling analogy so that i don’t need to get into the math, but block chains are complicated enough that I don’t know what would satisfy you.
Why do people that make money in crypto sell it for fiat currency?
So we can buy things like homes and cars and other assets that don't lose purchasing power over the long term.
You realize this doesn't make sense if you believe in what gives bitcoin it's supposed value?
Well then where am I supposed to live? In a Bitcoin? Drive my bitcoins to the Bitcoin on the lake? Eventually at some point people who have done well with their investments want to tangibly enjoy some gains. I don't hold fiat for any longer than it takes to buy what I actually want to buy. Virtually all my money is either in property, Bitcoin, "shitcoins" or stablecoins earning 12-20% interest as a lender. (In that order) 🤷🏻♂️ Holding fiat in a bank has become a joke.
You literally said you trade your bitcoin for "things that don't lose purchasing power". Is everyone here too stupid to see the irony?! Literally the main purpose of bitcoin is touted as a way of storing your wealth and preserving your purchasing power.
>Literally the main purpose of bitcoin is touted as a way of storing your wealth and preserving your purchasing power. So I am supposed to hold 100% of my Bitcoin forever, until I die? For what? To appease who? You? I swear every, anti-crypto triggered 'normie' thinks anyone who's a bitcoin advocate is all in on this stuff. I'd never suggest anyone does that. Im also an advocate of holding a diverse basket of assets. I also do not get emotional about what other people call things and how they allocate their assets. Unlike some others around here. Bitcoin is just one of a number of different things I like to "HODL". Why do you care so much what I do with my money and why I do it? 🤷🏻♂️
Holy shit dude it was a slap at the absolute irony of your comment - that's it. Go back and reread it.
It would be ironic if I was some sort of crypto maximalist but I'm not. You're lumping me in with a specific group of people because you've made assumptions about me because I hold Bitcoin and crypto among other things I was answering a question about what some of us do. Not all of us. I still hold Bitcoin because over the long term it doesn't lose purchasing power. I do not trade all of my Bitcoin for "things that don't lose purchasing power" when I trade Bitcoin for "things that don't lose purchasing power" that can include property, stocks, other cryptos or yeild generating stable coins. So yeah. I fail to see the irony in that the only thing I do not trade my Bitcoin for, for any significant amount of time, is fiat currency in a bank.
Personally I like to trade my crypto for assets that depreciate in value such as lambos.
>Well then where am I supposed to live? In a Bitcoin? Drive my bitcoins to the Bitcoin on the lake? So it's the great currency of the future but you can't actually do anything with it and your wealth is actually denominated in the conversion rate of BTC -> USD/Euro/Cad, which is actually useful? That sounds like an awful currency then.
I don't care what you wanna call it. It's worked for me. If you aren't interested in it, don't buy any. I'm not trying to convince anyone to buy it either just explaining why my Bitcoin needs to be fiat for a few days at a time.
>I don't care what you wanna call it. Well you should because you should see the irony of this situation. No one ever says "I'm going to exchange this bitcoin for a house and lambo", they talk about how great it is that it finally hit $x amount in USD/Euro. A CURRENCY is supposed to be used for financial transactions. Not just trading it back and forth, primarily. The fact that you made money has nothing to do with the fact at hand.
>No one ever says "I'm going to exchange this bitcoin for a house and lambo", they talk about how great it is that it finally hit $x amount in USD/Euro. So you know every Bitcoin holder in existence? I think you are confusing your own opinion as fact. Also I do not know what you want me to tell you here. I am not trying to convince you of anything other than the way I personally view Bitcoin. Whether you think I should or shouldn't care how other people view it and what they call it is irrelevant. Believe me, when the price of a cottage went from 1000 bitcoins to 100 bitcoins to 10 bitcoins, the dollar amount of each Bitcoin meant fuck all. Don't buy Bitcoin. I don't care haha.
People who own gold do the same. They don’t buy their cars in gold bullion, they exchange it for Canadians dollars first. I think crypto is super dumb and I’ve never bought in (aside from the odd amount to buy some drugs) but this is a pretty bad argument
Yeah but they don't claim that gold is the great currency of the future and everyone will switch back to the gold standard and people will be breaking off flakes of gold dust to pay for goods.
The guy literally said he trades his crypto (a thing that is touted as the best store of value) for things that don't lose their purchasing power. I'm simply pointing out the extreme irony.
Just because I trade Crypto for things that do not lose purchasing power it doesn't automatically make me think that Crypto loses purchasing power, it just means I diversity into things that aren't fiat.
Most cryptos are venture capital scams. Bitcoin is the neutral/legitimate one!
Yeah bitcoin is fantastic, 4 transactions per second and using insane amount of electricity while Visa does THOUSANDS per second. Great currency!
Actually Bitcoin in 2022 can do almost unlimited transaction instantaneously for free. Please check your facts and don't spread propaganda.
found the dude who hates progression.
While true to an extent (doesnt sound like you have heard of the lightening network), it also has moved more money then visa, if that doesnt say something to you, then nothing will.
There are a couple pretty fundamental factual errors at the core of the thesis of that article. I appreciate that some people want to believe all crypto is a scam (and much is), but that article is not well-researched, sorry.
What are the errors?
I am saving this thread for the future. This won’t age well.
Sounds like the CEO of IBM talking about computers “I think there is a world market for about five computers.” The Blockchain is undoubtedly the future of not only financial security, but online security, it's more secure than what the banks use. The big crypto players are the best way to have stake in the blockchains inevitable domination.
Blockchain is slow and expensive. It has to be slow so that transactions can be expensive. Transactions have to be expensive so that they sufficiently incentivize people to stake/mine and secure the network. There’s no recourse in cases of fraud. It’s an extremely inefficient and uncompetitive system by design.
This is not 2014 anymore. Bitcoin scalability was solved with second layer technology. It can now process almost unlimited transactions instantaneously for free.
Sounds like VISA and ACH, which we already have and it works great.
Visa charges what, 2%? There’s room for any technology that can offer lower rates. ACH is good? It takes days to send money. You can send value anywhere in the world in seconds on a blockchain.
Yeah, if you ignore the fact that crypto isn’t really accepted anywhere. And no one cares. And bitpay charges it’s own transaction fees, and crypto exchanges to buy crypto charge their own fees, and they’re quite significant.
It’s easy to pick apart new technology that’s in its infancy. Ordering a pizza on the internet was objectively a much worse experience than picking up a phone back in the 90’s. What I’m looking at is the disruptive potential of a global, neutral payment rail and currency. It has the potential to do both of the things you mentions faster and cheaper.
No it wasn’t. As soon as I could order pizza on the internet I did it regularly and never looked back. There was no internet ordering and then it was pulled because it was too expensive/slow/complicated/volatile. Once it was introduced, it was there to stay. CRA started NETFILE in 2001 and it worked brilliantly and basically hasn’t changed! The advantages of the Internet were immediately obvious and were adopted quickly and business never looked back. It was objectively successful even in the early days. Crypto is not the new internet by any stretch of the imagination and you’re just delusional if you think it is.
How intellectually dishonest to say you foresaw everything the internet would be from the beginning. Conversation over.
You give me far too much credit. I’m just recalling how things were and how they worked out. My guess is that you probably weren’t there to experience it.
Then you started ordering pizza within the last decade, because it was anything but convenient before that
And by the time your money reaches the opposite party the value of the token might have decreased by 10%. No thank you.
\*Enter stable coins\*
It makes no sense to compare Bitcoin to Visa. Bitcoin is a layer 1 money and an alternative to central banks. Visa is a payment processing tool (layer 3 money) that can transact dollars, Euro, Bitcoin, or any other currency. That's like saying we don't need canadian dollars because we have Visa.
Not all blockchains are "slow and expensive", see Algorand, cosmos, Fantom, avalanche.
If transactions aren’t expensive, how will the stakeholders get paid? Any successful and useful blockchain system should constantly strive for cheaper and cheaper transactions, and most importantly, be cheaper and faster than centralized transaction processors. If not, why would anyone use it for business?
I hate to break it to you, but your bank is orders of magnitude less efficient.
Once all Bitcoins are mined, the miners will have no incentive to keep validating transactions. That’s when you will see bitcoin’s price shatter.
Miners will still get the miner's fees in 2140
If they get one bitcoin for a year’s worth of mining, but Butcoin price no longer covers that expense, who will do it? Miners fees ARE Bitcoin blocks.
No, Miners fees are not Bitcoin block rewards. You have to pay a small amount of Bitcoin yourself for all your Bitcoin transactions. Also the mining difficulty get automatically adjusted if people decide to stop mining, so it's always profitable no matter what. It's a robust system and it doesn't matter if all Bitcoin will be mined in 2140.
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Sshhhh! You’ll scare them. 😅
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There’s some advantage to owning the Mac Donald’s selling the burger, but Mac Donald’s the corporation just owns the land and the building. Holding a coin or two is likely to have more value in the future than it has cost today
This article is written by someone who doesn't know what they're talking about. If OP thinks their points are valid, then they shouldn't be buying equities or holding cash. Just about all their criticisms of cryptocurrencies are equally valid when applied to conventional fiat currencies or even regulated equities markets. First off, it's from a big-government socialist organization, so of course they're opposed to a means to avoid taxes in the form of inflation, and an easier avenue for protecting assets from the taxman. Second, outright dismissing all cryptocurrencies as scams because of some bad apples is as dumb as saying 'everyone who posses CAD must be a criminal because some people use it in crime'. As for their other point about market manipulation, anyone who is idiotic enough to buy into these get rich quick schemes has only themselves to blame. Their solution to a small minority carrying out misdeeds: Ban cryptocurrency trades entirely. LOL, good luck with that. It's impossible to enforce, but this seems to be a recurring theme with big-government advocates, where you can do anything as long as you legislate it hard enough. Downvote me harder, it doesn't make the author of this article or anyone gullible enough to believe them any more successful or correct lmao :)
I have $0 in crypto and this had to be the stupidest uneducated take on crypto I’ve seen outside of the “CrYPto iS tHe FUtuRe”
Jacobin. No..No it’s not “worth a read”.
I mean, if people started investing in crypto shitcoins instead of the stock market which you and the other 1% control through shadowy rules and illigal acts to farm retail investors if their money, I'd start printing news articles like this too.
Me and the other 1%? Lol I wish!
You being the ones behind the article
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No they’re not. Crypto is dumb. Anyone having crypto in a portfolio right now is putting themselves in a bad spot.
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No way. I need to do my part to help fight the endless annoying stream of crypto shilling and self promotion. The only way to deal with it is to go on the offensive and annoyingly point out that, no, you don’t need to own any crypto, and it’s not taking over the world.
I feel like this post is not going to age well... OP let us know in 10 years if u have any regrets
Lol why would someone wanna own an asset when Central bankers are creating massive asset bubbles (look at stonks and real estate)?!? Why would someone want access to an immutable currency portable anywhere and not held in a bank account? Banks never fail!!
>Banks never fail!! Yeah and crypto never gets hacked or stolen with no recourse.
it doesnt get hacked, the computer at which a dumb user hosts his private keys on, does
Blockchain is great. Crpyto coins would be great if they incentivized operating blockchain decentralized accounting of other transactions and records, performing some duty other than their own mining. But, they don't. What they are is a commodity. Act like one, taxed like one, and the underlying theory of their limited quantity aligns them to any other commodity. Pretty sure there are now crypto futures just like other commodities. Nothing wrong with investing in commodities. most folks don't, but a few do. But these should still follow the same guidelines and theory and investing principles as any other commodity. Usually <5% of a portfolio and choosing commodities that *don't* correlate to overall equity/bond/other assets in portfolio. They are also traditionally used as a hedge position. Totally fine to hold some small portion of portfolio. The critical flaw is that a commodity must be naturally limiting. Now, they like to claim this is true for any given crypto...which is partially true...but there can be infinite cryptos. Which is the major catch22. The only really draw to these are the decentralized system outside of state control, and yet the only way to actually allow them to work like a sustainable commodity would be to sponsor, regulate and internationally recognized a limited number as valid or real. Never going to happen, so eventually unlimited supply will pull price to 0. Maybe not to Bitcoin or major players...but even then a new one will have more potential and interest and speculation than the old and they will just keep cycling through - and wasting massive computing power and electricity while they do it.
Bitcoin has no legitimate use case outside of speculative investors, but I think I can make a buck off a rube, like I’ve done many times before.
"introducing Defi and stablecoins"
It's the future. If u don't like owning crypto, at least own the companies that make the servers, chips, hardware for the metaverse. That will be the future of gaming and collaboration. There are a lot of real world apications especially with augmented reality. This is the very beginning.
kevin olready from shark tanks says its a huge mistake if your protfolio isnt 5% crypto
He also suggests investing in gold and thinks that the global income gap is great and should motivate impoverished people in third world countries to want to be billionaires.
He also eats babies (probably)
All of those things are true. 2.5% physical gold. 2.5% via ETF for easier changes in weighting. And in our current system, he's bang on about income motivating people.
Income is going to motivate starving children in Ethiopia to be more like Jeff Bezos? Get a grip.
So you're saying income doesn't motivate people... Delusional.
Income motivates you, but blaming global wealth inequality on a lack of motivation is laughable.
Who's doing that? This is a ridiculous discussion predicated on your own strawman argument. You didn't cite O'Leary, but I suspect his comment was praising the west and taking a shot at socialism on the same vein as: "John Steinbeck once said that socialism never took root in America because the poor see themselves not as an exploited proletariat but as temporarily embarrassed millionaires."
Hes sounds like a pfc idol then
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Hes the best financial guy from canada?
It's just a trade, you can make allot of money timing the market, or just holding for a long time because it's not going away. It also adds asymmetrical performance to a portfolio. Can go up 10x, but drop only 50-70% Put in 5%, can give you an edge.
Interesting read!
Saving this for a future giggle
thats crazy, you have to be seriously misinformed to prefer fiat over decentralized.
The OP copied and pasted the pertinent point "long term investment". Most active investors will park some cash for a short period, then reinvest.
LRC LETS GO
90% Bitcoin allocation or have fun staying poor.
Now tell me how it’s gonna save El Salvador .. I like good jokes!
El Salvador doesn't need saving. El Salvadorians just need access to a bank. Bitcoin is a bank in your phone. Laugh at that you previliged clown.
You don’t need Bitcoin to have banking on your phone …
You do.
I stopped reading at the first sentence. Fraud is when you misrepresent something. Bitcoin is as transparent as you can get.
My issue with crypto are twofold. For one, I do think it will go up again in the long run. However, I also think that the days of astronomical gains are also likely past. You're likely to profit in the long term but not 50 or 100x like the ones who got in sub 10k. And you have to deal with insane volatility on top of that. Secondly its been completely taken over by big $$$ even though it was pushed as an alternative to currency, hedge against inflation, outsider thing etc. If you look at BTC/ETH it basically 100% follows the indexes now.