The problem is that people expect it to be both a currency, which requires a stable value, and an investment vehicle, which requires a rising value. Obviously it can't be both.
That's true but I have faith that the US government will still back its currency. I don't have quite the same faith in a cryptocurrency that no one can say for sure who the creator is.
It being a scheme doesn't prevent people from profiting massively from it.
There's two big problems in Bitcoin.
The first is that in the event there is a major flaw in the software, you can pretty much bet the whole thing crashes. People just don't run full nodes, and there aren't that many implementations. It is relatively easy to disrupt the network. This is inherent problem for massively distributed ledger systems. In the case where a segment of the network becomes disconnected from the larger system, you can't really know if the coins you use are going to be accepted by the network once it is reconnected. Good to luck doing financial analysis in any kind of technical uncertainty.
The second is that if and when there is major pressure to actually cash out (because you practically can't buy food or pay taxes with Bitcoin), it is going to crash. There isn't enough money in the system (i.e. people who would buy them at that volume), so bank run will decimate the value. I have zero doubt that the SEC is going to reject the bitcoin etf once again.
Well, there is also the third thing which is that most people don't actually even understand how crypto currencies actually work. I mean at the mathematical level, and also how the math is actually implemented. Backdoored smart contracts and malicious software is a major threat. Also sometimes the guy who had the private keys just dies and poof goes your money.
27 comments
1 SnapshillBot 2020-01-01
womp womp
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1 BussyShillBot 2020-01-01
You’re not a woman. You’re a tomboy at best.
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1 capthazelwoodsflask 2020-01-01
I better buy some bitcoin now if it's going to be worth that much.
1 The_Great_I_Am_Not 2020-01-01
Cryptocurrency isn't worth anything. It's a complete scam market, non-scalable and the cost of "mining" it is more than its value.
It's amazing how many idiots have fallen for this scam.
1 capthazelwoodsflask 2020-01-01
I won't argue there. Is there anything at all backing it other than people willing to believe it's worth that much?
Who am I kidding? I'm actually heavily invested in bitcoin because it's the only way to pay for the things I'm interesting in buying.
1 The_Great_I_Am_Not 2020-01-01
How about not buying child porn and drugs?
1 capthazelwoodsflask 2020-01-01
How about not telling me how to live my life, dad? And I'm not buying child porn so much as actual parts of children.
1 Kellere31 2020-01-01
Environmental friendly biologically disposable fleshlight! 😍
1 heretobefriends 2020-01-01
Dude just donate to the Clinton Foundation and include a note.
1 capthazelwoodsflask 2020-01-01
I don't like spirit cooking leftovers. The meat is too tender for my tastes.
1 [deleted] 2020-01-01
[removed]
1 drugsarecool419 2020-01-01
why even invest in shit if you can’t use it to buy amphetamine powder and fentanyl
1 TheLordHighExecu 2020-01-01
The problem is that people expect it to be both a currency, which requires a stable value, and an investment vehicle, which requires a rising value. Obviously it can't be both.
1 BannedFromDrama 2020-01-01
Lol nobody actually tries to use it as a currency nowadays.
1 TheLordHighExecu 2020-01-01
That begs the question: what is the value of Bitcoin?
1 dabmasterman69 2020-01-01
TBF the same can be said of actual currency. The Gold Standard is long gone.
1 capthazelwoodsflask 2020-01-01
That's true but I have faith that the US government will still back its currency. I don't have quite the same faith in a cryptocurrency that no one can say for sure who the creator is.
1 BannedFromDrama 2020-01-01
It being a scheme doesn't prevent people from profiting massively from it.
There's two big problems in Bitcoin.
The first is that in the event there is a major flaw in the software, you can pretty much bet the whole thing crashes. People just don't run full nodes, and there aren't that many implementations. It is relatively easy to disrupt the network. This is inherent problem for massively distributed ledger systems. In the case where a segment of the network becomes disconnected from the larger system, you can't really know if the coins you use are going to be accepted by the network once it is reconnected. Good to luck doing financial analysis in any kind of technical uncertainty.
The second is that if and when there is major pressure to actually cash out (because you practically can't buy food or pay taxes with Bitcoin), it is going to crash. There isn't enough money in the system (i.e. people who would buy them at that volume), so bank run will decimate the value. I have zero doubt that the SEC is going to reject the bitcoin etf once again.
Well, there is also the third thing which is that most people don't actually even understand how crypto currencies actually work. I mean at the mathematical level, and also how the math is actually implemented. Backdoored smart contracts and malicious software is a major threat. Also sometimes the guy who had the private keys just dies and poof goes your money.
1 EasternAirline 2020-01-01
Fud
1 BannedFromDrama 2020-01-01
Except the part where every thing on that list has already happened, lol.
1 Bummunism 2020-01-01
And by at least once, you mean again and again and again. Number 3 anyway
1 Burnnoticelover 2020-01-01
If it was anyone else I wouldn’t care, but McAfee might actually do it.
1 Tzar-Romulus 2020-01-01
I don't want McAfee to get womanized. 😢
1 dabmasterman69 2020-01-01
He'll be the first female president if that happens.
1 drugsarecool419 2020-01-01
John Mcafee to invest millions of dollars into BTC before 2021
1 devotedrat17 2020-01-01
If anyone was gonna somehow pump Bitcoin up to a million it would be McAfee.
1 PUBLIQclopAccountant 2020-01-01
I hope he wins the presidential elections first