I have no issue with the block chain. Some guy on the internet January 2, 2018, 5:54 pm, I considered investing in Bitcoin back in the summer, but decided to spend my time doing other Mustachian things such as enjoying the outdoors and spending quality time with family and friends. This is exactly the same I have a dream. MissSaraBee Personally, I am out of Bitcoin because it is no longer useful to me. Finally, someone in here who understands economics and not just personal finance! Facebook is probably the 4th or 5th legitimate social media platform. A good analogy is a life raft on the ocean vs an aircraft carrier. Sounds like a bubble to me. Brent Weaver Second: Human nature actually tolerates a *lot* of corruption in exchange to stability, so I dont think well be switching over to this science fair project any time soon. It is already in Beta testing and will be released this year. How much of your net worth is in this investment? Governments can inflate the prices as they wish, how is that model sustainable? As far as Im concerned, this is the final word on Bitcoin. January 5, 2018, 8:26 am. Is having 1-2% of my overall portfolio in cryptocurrency stupid? No, not to me. Anyway, in real terms, US stocks have been in a secular bear market since 1999. http://whattomine.com/ This bubble is going to break, the environmental waste is awful, and CNBC legitimizing this as investing with ticket symbols must stop. Worth at least an extra couple bitcoins there. (Or computers or spaceships.) Every currency has something behind it. A boy named Sue I'm a software engineer and my career was in cryptography and network security. Its rising because people are buying it up, hoping someone else will buy it at an even higher price later. I have accepted lifes nudge and opened up several pages of your blog and am working through them right after this, The Vigilante Bitcoin is actually a saviour that provides the world an opportunity to get out of total mess without fighting a WW3! Real investments require production and income. It has reached the point that a big percentage of stories in the financial news and questions in Mr. Money Mustaches email inbox are about whether or not we should all invest in BitCoin. If it was instead patentable Id buy some stock in the holder. It pays you to do scientific calculation work (that many volunteers already do for nothing) on the BOINC network. Some people like owning pretty jewelry. A bitcoin is not an investment, just as. But its not some spectacular Instant Trillionaire piece of magic. But its likely just down the toilet. This is why bitcoin was created in the first place. All that the US has done since 2008, is hit the ball further and further down the road while at the same time blowing it more and more with air (read Quantitative Easing). LennStar OK Vijay but then why do you and others get so angry when some of us say we dont want to invest in it? Gold is relatively inert (wont rust except for very tiny amounts of oxydation), it is relatively easy to verify its authenticity (its malleable, the good ol biting the coin to see if it dents, you can melt it to look for impurities as well as hard to fake the colour with lead based forgeries). There valuation of pretty much everything but Bitcoin and Ethereum is unjustifiable. But anyway.you need a little imagination to see the value it has for the first world, because it has to arise from something other than a replacement for something preexisting. Nothing is 100% guaranteed in life. Is it speculation, sure, but its no different that speculating on the future price of a stock, or oil, or the rental market. Time will tell. Bitcoin dropped 20% overnight, so it is not currently a very reliable store of value. 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! It is when stock prices stay the same in nominal terms but everything else rises in price around them, effectively masking the very real stock market crash through inflation. ), but not because they did anything useful or produced any money and value to society,. 26 Replies 18313 Views March 27, 2020, 01:47:17 PM by talltexan: How do you press your kids to learn money habits? (Its also very hard to make jewelry out of. If youre one of these credible people, please do so in the comments or in a blog post on Medium that we can all read. Because it is. Also appreciate the utility of sending value to anyone anywhere with an internet connection without asking a middleman for permission doing financial surveillance on you. For more casual sampling, have a look at this complete list of all posts since the beginning of time or download the mobile app. What you are describing is called a silent crash. Its like Winston Churchill said: Gold is the silliest, most irrational thing you could ever use as money. Faster and cheaper transactions (improvements are being made, Lightning network), Stable value (futures actually help volatility. Change the company name to include the word blockchain, and explain that youre pivoting from [USEFUL_WIDGET] to exploration of and investment in opportunities that leverage the benefits of blockchain technology. But yes: Bitcoin is silly at current prices. About purse.io: Do you have to pay the transaction fee to deposit the BTC to escrow? This is bitcoin's intrinsic value and the longer it exists, the more apparent it will be. Totally agree about cryptos- but not sure gold should be lumped in with them. 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. Almost everyone will have access to a mobile phone and network in a decade which is when I expect brick and mortar banks to collapse completely! and we live in the middle of it. Subsequently, some 70 years later, Im still using that toilet paper to finance my retirement, buy cars, houses and all sorts of things? As for spending your Bitcoin, I digress. Hes helped thousands of people improve their lives. The NEW, BEST way to absorb all of this monetary wisdom is to subscribe to the newsletter and boot camp using the boxes to the right -> This YouTube Video is one of the best shortcuts I found for explaining how Blockchain (and Bitcoin) works. A stock is a share of an actual company, bound by rules and regs (however imperfectly administered, at least they exist). Technology is always the game changer. And you dont want it for this purpose anyway after all, do you currentlyhide your money in offshore tax havens and transact your business on black markets? Its a huge money maker if you can bet that youre not the bigger fool. Margin of Saving Ryan Thomas Good points? Your highly emotional responses arent helping your case. Im patiently watching on the sideline to see how this is going to pan out. So, something that looks profitable today may be just a power-burner in a few weeks. Do we really want a place where youre either an Amazonian or Walmartian? There used to be cool arbitrage opportunities on a website called purse.io, where you could buy amazon products for a discount using bitcoin but transaction fees have made those types of business models (temporarily?) Ryan Thomas Hopefully someone else will go through this in 2023 and fill us in on the value then. This article seems ranty/irrational. I can have a stash of cash that is inflation proof just in case the government decides to wildly inflate the currency. Use it or lose it. January 3, 2018, 12:48 pm. They grew pretty flowers that we enjoy looking at. 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. Not only stocks, but real estate and bonds are expensive as well. Max Thunder Yeah, IF YOU SHOUT LIKE THIS IT MAKES YOUR POINT COMPLETELY VALID. Retweet. Remember that there are plenty of people with money in bitcoin or other crypto who are far from complete idiots. Vijay, its okay. We clearly see them in Africa, Middle East and Latin America. My issue is with the currencies themselves. I mentioned very specific problems with BTC/ETH. 1) Adoption curve and network effect, 2) people buying & holding (hodling), 3) people using it to buy stuff or services. April 2, 2018, 7:38 am. Its super risky and probably not compatible with mustachianism, but that said its pretty interesting and I think it remains possible that MMM is wrong. David Wendelken FirstPrincipleThinking That is what is pissing me off. Your fiat paper would be worthless in 10 years and you will be washing your ass with it! Heck no. Complaints and insults generally wont make the cut here, but by all means write them on your own blog! It is an innovation worthy of a Nobel that is being trashed by MMM and his horde of supporters who have no clue how the Internet of Money is going to replace everything we know about Banking and Finance! The kids pulverize the bricks to make brick dust, which is the most valuable currency/commodity in their forest kingdom. Same wishes to you on your toilet paper fiat money my friend. Because reasons, technology and internet! The world is changing which many westerners cannot see. January 11, 2018, 12:03 am. January 2, 2018, 6:23 pm. The very definition of an unsophisticated investor is Being more willing to buy something, the more its price goes up.. Chris Urbaniak Thats a tricky question. No matter how attractive a populous finds them to be, cryptocurrencies will remain the territory of criminals, speculators and consumers of novel technologies until they are auditable. Glorkvorn Im just a mere boring community banker by trade and I get dismissed for speaking out about bitcoin because I just dont understand the new economy. Mr. Money Mustache is the website and pseudonym of 48-year-old Canadian-born blogger Peter Adeney. It needs to expand with the supply of goods and services in the world, otherwise we end up with deflation and hoarding. February 13, 2018, 5:35 pm. To keep things non-promotional, please use a real name or nickname(not Blogger @ My Blog Name). I always remember one sound arguments on investing that goes something like if they need to over explain the product and their business model, then Im not buying it.. Andrew Kravitz 7 Replies 594 Views February 10, 2023, 11:49:28 AM by index: Bonds funds vs stable value funds. January 3, 2018, 1:08 pm. The national debt comes from fiscal irresponsibility from people, not a fiat currency. Either way how about not alienate people based off their investments and act like an actual human being instead of a sociopath? Peopleve been lusting after gold (god knows why) for millennia because it clearly arouses something inside them. Saving billions from poverty, war, and the enslavement of banks or the lack of any banking is Altruistic. Probably the same will happen again. I would say, Probably the same would not happen again. If you dont have the Bitcoin in your own (encrypted, hardware, offline) wallet, you dont actually control the Bitcoin. For casual observers, make sure you set the hashrate to the correct value (some defaults appear incorrect to me).. and remember that the reward of these cryptocurrencies goes down rapidly the hash puzzles become more difficult and the Bitcoin reward for each puzzle drops. Im more inclined to trust contracts that cannot be broken. Slaves to banks and few elites? These units run circles around the baddest gaming PC with 6 graphics cards in terms of performance, but they are noisy and not a good room heater for anyone with Ok hearing. Mr. Money Mustache Do you seriously think that corruption is not a big deal in first-world countries? Im going to try putting some of my thoughts together in a post at the bottom. The web. No one controls it, so no one can rewrite the data. A real, usable currency CANNOT have such huge fluctuations. In a practical sense, this . > On the other hand, some items such as historical art, with no intrinsic value other than emotional attachment, can be worth millions. Everything currently is too expensive. Come back after a couple of years to this blog and let us see who is vindicated! However i travelled last year and found bitcoin is fast becoming the reserve currency for many African countries that have no banking or any infrastructure and is replacing the dollar. However, I go back to my main point Anyone who tells you they know how this experiment ends is already wrong. Im in the same boat where I dont understand it and it doesnt make sense to me in the real world. Oh my gosh, get out! Its only valuable when you cash it out to a real currency again, like the US dollar, and use it to buy something useful like a nice house or a business. This is the most blasphemous thing ever to be written by MMM. Dit is je geld nu waard als je een jaar geleden Bitcoin, goud of andere assets kocht. LennStar Ive been wondering this too. But I think you meant to write apologize on behalf of half of humanity. The other half of humanity has no internet access at all (internet access just eclipsed 50% of the worlds population this past year), and thus they should not bear any responsibility for the cryptocurrency craze. You gotta have it. Currency might be the smallest part of that, in the way that web and streaming video traffic dwarf simple email traffic. Get out while you can. January 15, 2018, 11:44 am. Ive yet to find anyone who has. You are a dumb man TomTX! I know have around $20k in crpyto having invested around $3500. The only thing I would add as a further disagreement to MMMs article is that speculation is inherently a GOOD thing. The security of the Bitcoin blockchain. , Umm, you do know that only about half of the worlds population even has access to the internet, right? Theres illegal activity in all its shapes and forms (ie. First: cryptocurrencies have not demonstrated lack of manipulation. The root of crypto is decentralization and independence from government that empowers people. I am laughing my ass out. Its very informative and answers many questions you raise, 2. My mother in law collected beanie babies and I had the pleasure of looking up their worth this Christmas back hometheyre about $5 each and I will owe eBay 10% + shipping. Its cut a few years from our projected FIRE date. Speculating on bitcoin for this reason only really works so long as there is some new greater fool who joins in on the speculation after you have bought. That's right -- it really does not matter (to me) why they split up. Why would the author call this act stupid? Youve got Bitcoin with a market value of $234 Billion Dollars, then Ripple at $92 billion with Ethereum right behind at $85,792,800,592. Crypto currency as an ecosphere financially has benefited the tech industry dramatically, and if you invest like Mr Money Mustache advises, that means you probably have a good amount invested into the S&P 500. Then you are in at twice the actual price of Bitcoin. Cmon, only wealthy people evade taxes in amounts that would matter & theres a cottage industry made of tax lawyers doing just that for them. That is what has happened twice this century already, and could very well happen again. These people are either shit scared of the changes that are going to come, or dont understand macro economics. Lets be frank. The question is if one is worth $15k? What usually happens when this occurs? So, they sell it at a discount instead of losing revenue. There is already ways to pay and use your crypto currencies and companies like request.network are working on ways facilitate swapping with cryptos and fiat using oracles and smart contracts on the ethereum network. If I lie to you and take your money, thats one thing. 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. Research further. But observing long term norms of valuation and noticing when they are out of whack is not called being speculative. If not, you may want to think about selling. However, investing in Bitcoin now seems more along the lines of investing in a BBS in the early 90s. That is bullshit written on toilet paper by a Private Bank called the Federal Reserve, owned by unscrupulous bunch of elites like your JP Morgan. Seems to Petes point, theres an awful lot of marketing push behind something that has dubious use cases and limited long term value. Say I trade you a car for 1 bitcoin on Jan 8. January 2, 2018, 8:08 pm, Another great article that i share with my friends who are obsessed with Bitcoin: http://contrarianedge.com/2017/12/01/bitcoin-millennials-fake-gold/. No doubt we are in a crypto mania now, but the concept of a global digital currency has been coming since Biblical times. 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. That is what people said 1999/2000 for the dotcom bubble. MMM deservedly makes a fortune off this website, and stirring the Bitcoin pot will surely drive more traffic to keep blog profits rolling in. I really would hope that MMM doesnt sell out like most social influencers but regardless not understanding the technology is no excuse for spreading fear, uncertainty and doubt about it. Only if you close your ears and go Na-na-na-na-na. What if anything gives a compelling reason that bitcoin or any one of these other currencies will end up in the group? Poor people have never initiated a tax loophole. They saw value in it very early. Before stating something, do your research of what is a Ponzi and what is a Pyramid Scheme and whether Bitcoin fits that or not? January 15, 2018, 9:02 am. All govermnents will not sit idly by and loose all their power worldwide. Its speculation, pure and simple. The bidding up of prices in pursuit of speculative riches is not fine. Maybe the currencies will be useful to, but the really useful ones will be the ones designed for some purpose. However, some cryptocurrencies DO have intrinsic value, which is computational power. Thats cool. Apparently they didnt like my edits, where I called out rogue nations for propping up BitCoin as a means to bypass sanctions. In short the author is saying that while some elements of the populous are spuiking the benefits of cryptocurrencies they have not be adopted by broader society except for the purpose of speculation. A billion dollar gaming industry creating games worth watching. ), You write that things that gold, tulip bulbs, Beanie Babies, 1999 dotcoms without any hope of a product plan, pre-construction pricing Toronto condominiums you have no intent to occupy or rent out, and rare baseball cards are not investments.. But thats just the software side (Blockchain). All this bullshit about backed by faith and credit of my country goes out of the window when currencies die someday. GPU mining is dead. The bitcoin price isnt rising because people are buying the coins to conduct real business. as long as people in their consciousness believe it is a store of value it is. You cannot create more coins than are programmed to ever exist. Bubbles or Tulip Mania as you put it dont do what bitcoin has done since its inception in 2009. The cost savings from implementing everything on immutable ledgers has significant cost savings and automation of processes which is why there is so much speculation. His rhetoric about trusting the wise elites of the Federal Reserve also irks me. And this, MMM There are no financial instruments that will protect you from a world where we no longer trust each other. If you feel comfortable developing your own metrics with which to gauge coins and want to invest in projects long term, you can. Thats what I have been saying guys. https://www.cnbc.com/2017/12/21/no-bitcoin-is-likely-not-going-to-consume-all-the-worlds-energy-in-2020.html, Biglaw Investor 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. Cmon people its not rocket science. 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.) Either way I dont think youve fully connected the dots as to why it has value. Note that if you remove any of these essential elements, youve made the system effectively worthless. (like ATMs were supposed to replace Tellers years ago *eye roll*) And Bitcoin is replacing the banking system? Not going to do this with you.. coinwarz.com keeps track of profitability, but it can rapidly swing with changes in coin price. At least theyre cute and the grand kids like them! If that is the case, their values are strictly driven by speculative bidding, making them the worst sort of investment. Enjoy your crash. Youve made a great profit, and you can play with that $28k. 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. No govt is just going to let the ability to control their economy be taken away from them. Even if Mining gets centralised, Bitcoins future cannot be dictated to by them! Ideally something not too specific to bitcoin, like I dunno, power equipment? Think about it and I know you realise what is happening. Rather like italicising. I would recommend everyone to do their own research because many of what MMM says is plain wrong. So basically you dont understand any of this, therefore it must be a scam. Not a repeatable strategy though, Im sure. Plus, it costs something like $20 per transaction. Satoshi, while extreme in his views, watched the housing market collapse due to the fraudulent behavior of the banks and the government that backs them. Travis, your are right. Andy Stow Ive been trying to think of an entrepreneurial way to capitalize on the hysteria without investing in it. Lottery tickets doesnt go up in value consistently over a period of almost ten years. It is subject to crazes and manias. Would yours? I wonder why. Not just stupid, insane. 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! Maybe a couple years from now when the mortgage is paid off and we have some play money/money we can afford to lose. It is accumulated by countries, banks, and careful funancial entities. rollie fingers Very good article! Yes there is. Something only has value if ppl place a value on it. A boy named Sue January 5, 2018, 8:29 pm. So yes, blockchain = good bitcoin=maybe? Whether you should get out is a difficult question. I think that the point being missed in all of this is NOT that people want to evade taxes, but that they are being screwed backwards & forwards by the banks (& the tax evaders-in-chief that run them). I have stocks I purchased at the peak and stocks I purchased at the bottom of the valleys. Also withdrawing profits consistently so that if a crash comes you are ahead of the game and only playing with the markets money by withdrawing at minimum what you already invested. What, you think rich people dont argue with strangers on the internet? 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. Mr. Frugal Toque
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