Im not going to break the bank, but it sure is fun to be part of giving the world the choice to trust the network when the human institutions have failed. Vijay What ICO do you own? Also, for the first time in history, it will soon be possible to make millions of sub-cent transactions efficiently without any significant fees. And if you havent been digging into the cryptocurrency world much, it gets way weirder than this. Qaddafi was taken out because of the Dinar. This is a non-sarcastic answer: The same could be said of buying a Powerball ticket every week. (Aside from the threats of force that stem from legal tender laws.). Bitcoin and altcoins consume a ridiculous amount of energy. November 20, 2018, 12:00 pm, so other storage is NOT needed sorry, my phone likes to randomly delete words, Tor Kristen Haugen Is it possible youre confusing the message of this article? Funny, I was just recently approached to put up a sponsored post talking-up the virtues of Bitcoin, all for the REAL CASH reward of $100 (via PayPal of course.) Barak PazTal If so, congratulations. I suspect it will have uses beyond public currency. 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. I dont feel like making a well-constructed arguments because Im tired and this may make me look like a fool but frankly, I dont care. 15% off everything you buy on Amazon basically. Oh my gosh, get out! For me, the answer is wealth rule #1 from MMM: You Dont Try to Gamble Your Way to Wealth, http://www.mrmoneymustache.com/2013/09/20/wealth-advice-that-should-be-obvious/. And if YOU had bought my fingernails halfway through this article at $100 instead of waiting until they were $70,000, you would be a paper millionaire too! While I dont consider Bitcoin an investment and I wouldnt advise anyone to pour their life-savings into it right now, I do encourage anyone reading this to buy a small amount and start using it to make everyday purchases. I do believe hyperbitcoinization will happen in a decade or two. Hell isnt that why we are here in the first place? You are a dumb man TomTX! Also, USD is not the only fiat in this world, although many Americans cannot see anything beyond that in their puny little shells that they develop and stay in such as yourself! And to your last point Lightning network will be cheaper? Even if Mining gets centralised, Bitcoins future cannot be dictated to by them! Again, only in nominal terms. Yes, this is a function. Could you please tell us what you are invested in and when you got in? I put my money where my mouth is! 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. From arranging hits to buying drugs to political corruption. Its well written and pretty obviously by a real software and math person. In 2018 and 2019, expect the speculation to subside as more tokenomics becomes important for valuations. You need some sort of fundamentals, and in bitcoin there are none. Its funny reading your article because while Im a true believer in bitcoin as the internet of money, I feel pretty much the same way as you do about 99% of the rest of crypto. But just to provoke you, I would ask you this question: What IS money?!? Thanks for sharing your opinion! Like every state currency, it derives its worth out of the fact that the state says you can *always* pay your taxes with it The real winners of the gold rush were the ones who sold shovels. Sure speculate, but this is not going to be the future as it stands now. Then the mining ist just looking up data in this table. Hi Financialindependence.. The sooner we debunk the myth and come to our senses, the richer our world will be. Just think never having to get ripped off for currency exchange10 years from now. Yes, that is your ground reality today. January 3, 2018, 12:55 pm. Human Kind has never had the opportunity to truly own their money ever, and Bitcoin and Cryptocurrencies are the first time we even have that opportunity. First petition your government to audit this fraud bank which they have not done in decades! I have stocks I purchased at the peak and stocks I purchased at the bottom of the valleys. January 3, 2018, 12:26 pm. And what about physical forms of cash for private sales? Bitcoin reminds me of a story my daughter told me. Like they say, speculation is as old as the hills. The problems it solves for the billions of people in the second and third world shouldnt be so casually dismissed though. Not the only reason, but if earnings dont pan out, stock prices wont necessarily drop. An Aside: Why should we listen to you, Mustache? 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? No one person has control over it and that may end up being a good thing (people are corruptible). Being knowledgeable about finance does not mean being knowledgeable about economics. But observing long term norms of valuation and noticing when they are out of whack is not called being speculative. The security of the Bitcoin blockchain. Speculation is great. Even some cryptocurrencies that currently exist. Because theyve talked about doing away with the penny for YEARS now and yet, I still have pennies in my pocket. So now that youve got an truly immutable public data store, what do you do with it? Mr. Money Mustache and his then-wife retired at the age of 30 with a net worth of $600,000. The cryptocurrency is the glue that holds the system together. An Interview with Matt Cutts: Can the Government grow a Money Mustache? Last May, when I announced I had inked a deal with Harriman House to publish my new book, Pathfinders, I invited those of you who had embraced The Simple Path to Wealth to share your stories. 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. Christopher R Young (based on July 20th blog post) Started by caracarn. Are you saying wisened mustachians own no stock or ETF of any tobacco companies? Id like to apologize on behalf of all humanity that you were compelled to spend some of your life energy on that. Vivek Prasannan Mr. Money Mustache shares his opinion about Bitcoin. Its trust is the full force of the weapons and arsenal behind it. I am not a millionaire either or have any heavy investments in any of this and I am not certainly looking to grow my investments by commenting on a blog, of all places! Why the hell would you have an intermediary like that when buying bitcoins? Its totally different when you lose your money by yourself. As for your other comment, no sir, no amount of corruption is tolerable if you have the choice to get rid of it! I own my currency as it is today (EUR and USD), how come you do not own yours? Why do I trust the dollar? Bitcoins etc does not make it easier at all. January 3, 2018, 4:42 pm. Most of the 1000s of cryptos (and maybe even bitcoin) will fail, but the few that remain will change the world. January 3, 2018, 7:59 am. They said they are going to ban it, but there was such public outcry the government just backed off and now says they are still discussing the matter! This idea that you HAVE TO OWN ONE FULL BITCOIN is madness. Smoking brings zero value to society, only net negative. I have no issue with the block chain. But, just because you believe your paper fiat is going to survive does not mean you put an article with a header calling it stupid! The value of a blockchain is its immutability, derived from its decentralization. That was called new economy. I just wish it had come out before the holidays so I could have just pointed family members to it instead of attempting (unsuccessfully!) A billion dollar gaming industry creating games worth watching. LennStar Is having 1-2% of my overall portfolio in cryptocurrency stupid? No, not to me. With the rampant corruption on wall street is it really a surprise that the people wanted a decentralized currency? Bitcoin is mined using ASICs, not nVidias graphics cards. ), bastringue BTW, the reason you put a small amount of your money in gold is to hedge against inflation. Vijay, what MMM is saying is that cryptocurrencies like Bitcoin cannot presently operate as currencies. Same with internet search: remember AltaVista, Lycos, Dogpile? The issue with the .com bubble was internet companies were given a high valuation with no demonstration that they were profitable or even provided a service/product. Interesting article, with some great points. Andy Stow These are all things that people have bought in the past, and driven to completely irrational prices, not because they did anything useful or produced any money and value to society, but solely because they thought they would be able to sell them to someone else for more in the future. Mustachianism the mental training that gets you to very early financial freedom requires you to evaluate inefficiencies in our culture and call bullshit upon them. January 2, 2018, 9:01 pm. Its a win-win situation.. The big players in China use hydroelectric power. The bidding up of prices in pursuit of speculative riches is not fine. Im not saying to build a bunker or anything but just diversify your portfolio for different economic times. All these ICOs are just insane. It is called being informed about reality.. Like a piece of a profitable business or a rentable piece of real estate. also look at russian, venezuala and Argentina for more proof of bitcoin. It's natural to just look at the price itself and how much it's . Evan Drake Its a speculation, pretty much like buying gold. Why is the author so angry about this fact? Why Bitcoin and not another coin? https://www.nytimes.com/2017/02/19/arts/design/has-the-art-market-become-an-unwitting-partner-in-crime.html. Bigger bulb, vs smaller, vs healthy, vs rotted. Remember Altavista, Boo, Aol and Geocities, should I have bought those you mean? This is Part 2 of 2. Let me know when you find a buyer for your $70k fingernail clippings. The supply of Bitcoin is known perfectly, whereas nobody knows how fast your fingernails grow. Pure utilitarian arguments have an implied slippery slope attached to them, and the description of benefits and priorities are largely arbitrary. When evaluating investment bubbles, it means looking at where everyone is throwing their money no matter how many billions and being willing to say Bull. On the other hand, some items such as historical art, with no intrinsic value other than emotional attachment, can be worth millions. Some companies are already testing it in main net as well! Is this likely to be worth $20,000 long term? Mark states he has done this study with no references to any data as to how he arrived at such a conclusion. Is it likely worth closer to $0 than to $20,000? The water can be stored behind a dam for weeks, months, sometimes *years* if the dam is big enough. Not everyone agrees, but it cannot, unlike cryptos, be regarded as stupid. Mr. Money Mustache is a thirty-something retiree who now writes about how we can all live a frugal, yet awesome, life of leisure. And a currency thats not used for transactions isnt a real currency. LOL. ), Im in the same boat. Bitcoin has very little usage. While were on the topic of bubbles, it seems the truly gigantic bubble in the world isnt bitcoin, but rather the global debt market. I linked to Aswath Damodarans video on my Bitcoin post also. The only reason the dollar is working as money is because it started out with gold backing and then they gradually removed the backing. if they dont open one day, the fragile world crumbles. January 3, 2018, 12:17 pm, The last 10% of possible wins are better left to the idiots. > However EVERY SINGLE BITCOIN TRANSACTION IS PERMANENTLY RECORDED AND TRACEABLE. They dont tend to go longer than that. Scott Nicholson Fair comparison? Why do you think so? I made 400% and pulled them out. (Then Ill get out, right? If you want to move away from current currencies then you would probably have better luck starting a Craigslist for bartering website where you cant list prices. Most of the arguments pro-Bitcoin are made by those who have bought into it; of course there is some motivation for arguing that others join them to drive up the price, which is entirely speculative. Long time reader, first time commenter (ha). But, these days you shouldnt use resistance heaters except for the lightest heating loads, because they are obsolete. Because hydro acts as a massive built-in storage in both the short term (ms, seconds) and long term ( hours, days, There are sure going to be a lot of people gnashing their teeth and rending their garments when the bottom falls out of this market. I believe I may be allergic to mercury. Anyway, what would he dump it for? Anytime someone says they are investing in Bitcoin, I have to laugh. What if anything gives a compelling reason that bitcoin or any one of these other currencies will end up in the group? Let them hold on to their fiat currency if they like to. As should everyone. Bitcoin is actually a saviour that provides the world an opportunity to get out of total mess without fighting a WW3! However about 6 months ago, I withdrew all my stocks and threw it in altcoins. Youre playing a psychological, win-lose battle against other humans with money as the only objective. Why? My gosh, where do you these people come from? :), https://twitter.com/elonmusk/status/941500121564332032, farmecologist The Cryptocurrency bubble is really a replay of the past: A good percentage of Humans are prone to mass delusions which lead to irrational behavior. Or maybe you dont understand how exchanges work. Its closest to an MLM for me. (Update from late 2018 Mike ended up being wayyyy wrong.). 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. Because I advocate something, I am not raving Mad! Its a complete rip off. Mr. Money Mustache If you think you are hardcore enough to handle Maximum Mustache, feel free to start at the first article and read your way up to the present using the links at the bottom of each article. 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. Is it likely to be worth $0? The good news is that more transactions alone wouldnt raise the energy cost (although more transactions are currently impossible anyway), and if Bitcoin raised the price of electricity in one country it would probably just cause people to mine somewhere else. This inefficient design is now wasting more electricity than many entire countries. January 5, 2018, 7:01 am. Michael This view is not quite right assuming that your usage of the word speculating has the connotation of gambling. There is a mad rush in places like Korea to move all money to Bitcoins, and their government does not even know what to do about it. Its cut a few years from our projected FIRE date. Ten years later and the price is still nowhere near that prior high, with it currently trading around $60. Now, with that moral sermon out of the way, we might as well talk about why Bitcoin has become such a big thing, so we can separate the usefulness of the underlying technology called Blockchain, from the mania about how people have turned Bitcoin it into a big dumb lottery. But if it goes down, I wont put anymore money into it. So Im going with no. Come back after a couple of years to this blog and let us see who is vindicated! LennStar And its back to 12.5K in two days. (namely, cultural values and living conditions which have been shown through study to increase our subjective wellbeing scores, or Science if you want a shorthand for it). Every week good thing ( people are corruptible ) ( and maybe even bitcoin ) fail... My overall portfolio in cryptocurrency stupid, how come you do with it being a good (... 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