MD Said: I have always been a skeptic on bitcoin no matter how high it goes. Some investors I follow like Ric Edelman and other financial hosts I respect are advocates and big investors in it. At the Berkshire Hathaway Meeting, Warren Buffet said this:
"I would "not spend $25" even if I was offered all the bitcoin in the world."
Ok, now I wouldn't be as extreme as that. If offered all the bitcoin in the world for 25 dollars, I would certainly take it, but he was trying to make a point here.
According to Buffett, he does not believe in investing in bitcoin as "it does not produce anything". An asset, he added, has a real value only if it can "deliver something to somebody".
Note: That is also why I don't invest in gold.
Of course, the crypto world went crazy -
but for me I will stay out of crypto currencies. I don't understand it. It makes no sense to me and I don't ever see it replacing our current fiat currency at least not in my lifetime.
LL Replied: Being of the IT and not finacial mindset, crypto currency looks like a pyramid scheme and a scam. A lot of computer resources and hence electricity going towards "mining" for small nuggets.
On the other hand, Megan Millions is at 57 million, est cash value 33.9 million.
I'm absolutely of the opinion that it's just a long-running ponzi scheme. Nothing but hot air behind it and your ability to find a greater fool to pay you more for it than you paid.
CL Said: I feel the same way about NFTs. Every generation has to learn. There’s a lot of predators out there….
I said: I think Bitcoin is Bogus Also. I don't Own any. Won't Own any. I would like a Gold Coin... Just to Rub it... and admire the color... maybe bite it too... One thing about Bitcoin is that if You Lose your Password Your Money is Gone. Totally Gone... a Gold Coin is still valuable even after a forest fire... and I have a Fondness for Gold because it conducts electricity and does not rust. Every connector used in Computers has Gold Plating. You can see it on the fingers of a card that plugs into a motherboard... 50 micro inches is standard. Enough to get the job done but not enough to recycle.
SG Said: yea it's crazy. There's no forgot password mechanism, there's absolutely zero consumer protections. If you accidentally send some coin to the wrong destination address, even if that destination is invalid or is a wallet nobody has ever used, your money is gone - no way to get it back. If you're a victim of fraud your money is gone, no bank can issue a chargeback for you.
SM Said: I agree, where does the "buck" stop? Nobody is liable, it is arguably backed by the "black market" at some level, but who do you call, nobody to answer to and for.
RW Said: It’s money being invested in the hope of an increased value of something that produces no service or product and creates no jobs. It’s money that can better be invested in reality
I Said: The Other Reason I want to Buy Gold is History... The California Gold Rush of 1849 etc etc etc... Like my Mom Said: "The Miners Came in '49 the Whores in '51 and When They Got Together, They Made the Native Son." - Bitcoin Doesn't have any History Like That...
and I Replied: I have heard of it. It was an International Illegal Drug Store... I never Used it because I always bought my Illegal Drugs from People... My Favorite Place was the Parking Lot of a Grateful Dead Concert... I was also worried that a Silk Road Merchant would Take my money and Sell me something that was NOT Illegal Drugs... or Bad Quality... like If I Ordered LSD they Might Substitute DOM... Easy to Make, but a Three Day Nightmare trip...
That IS a Good History! Totally Worthy... I also wonder why Russia doesn't Ignore all Sanctions by the USA and Sell their Oil and Gas For Bitcoin... The USA opinions on Bitcoin is Unimportant... as they say: "Honey Badger Don't Care."
and VK Said:
Bitcoin is important to breaking free from government control of the economy. Just like gold, it is NOT an investment but a HEDEGE against inflation. Like gold, it's "price" fluctuates, but this is an illusion — what fluctuates over time (macro) is the "price" (value) of a fiat dollar. As the dollar is inflated away, its value declines and Bitcoin/gold/commodities in general "rise" in price because it takes more dollars to buy the same item. And ounce of gold is always an ounce of gold. A Bitcoin is always a Bitcoin. Only the dollar changes its value. Just like gold, one should not watch the daily (micro) fluctuations as individuals enter and leave the market for personal or psychological reasons.
The major drawback of Bitcoin is not that it looks like vaporware (it isn't). It's major drawback is that it is not truly anonymous. Our Enemy, The State, can unveil pseudonymous users (in my PhD research, I found many technical papers on how one could backtrack from the blockchain to the timing of transactions to the addresses used to the user. It's complicated, takes a lot of effort, and would probably be used to "make an example" of some high-end user.
There are other digital currencies aiming for complete anonymity. But none of them are "investments" from which you should expect to "profit." They are
Counter-Economics style self-defense methods ofd escaping the stranglehold that governments have on fiat monetary systems. Someone bribing a border guard with a Gold Eagle to escape a tyranny is not thinking about what he paid for the coin at the time of purchase. It was a life-saving purchase, just like a first-aid kit.
MD replied to VK: hmmm Bitcoin is touted as an inflation hedge but its not an inflation hedge. Look at its chart in the last month. Bitcoin will never be the currency to break free from government and yes the FED is an imperfect system but we have not had the major crashes or depressions that were continuous before the establishment of the FED. Be careful what you wish for.
NB Replied:
"what fluctuates over time (macro) is the "price" (value) of a fiat dollar. "WHAT?? Are you saying that from 2019 to 2021, when the value of a bitcoin rose from $9.2k in Oct 2019 to $61k in Oct 2021 (an increase of 563%), that we had annual inflation in fiat currency of 281%? That's absolutely absurd.
Everyone buying bitcoin is doing so as a speculative financial instrument, not as a hedge against inflation. In fact, as fiat currency increases in supply and decreases in purchasing power (inflation) - bitcoin has been decreasing in value. The exact opposite that you would expect if it were to be used as a hedge against inflation. You want an inflation hedge, buy series I-bond stocks from the us treasury.
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