November 20, 2018, 11:56 am. coinwarz.com keeps track of profitability, but it can rapidly swing with changes in coin price. I enjoyed the cancer pill analogy, probably the best I have heard of yet. months) so other storage mechanisms are needed. Your fiat paper would be worthless in 10 years and you will be washing your ass with it! Because of this, newspapers start reporting on prices daily, triggering so many tales of instant riches that you notice even your barber and your massage therapist are offering tips on how to invest in this new asset class. Market prices are not set by consensus. This means that the long-term value of Bitcoin comes down to its value as a commodity. Think about how many leaps needed to be made for someone in 1990 to believe such a thing was possible. But, these days you shouldnt use resistance heaters except for the lightest heating loads, because they are obsolete. Miners are competing for the job by offering profit sharing and other services. It certainly is for day traders in short term. It can have applications in the monetary system, contracts, and even as a component in higher level protocols like sharing files. It grew to $240k. I have shown from above that their is value in digital currencies. So we need more credible people to speak out against it. But its likely just down the toilet. Peter Mevoin February 21, 2022, 8:04 am. Smoking brings zero value to society, only net negative. The Money Mustache Community . He appeared on the Kevin Rose podcast as well. January 4, 2018, 7:36 am. Is it speculation, sure, but its no different that speculating on the future price of a stock, or oil, or the rental market. Bitcoins will never degrade over time, your fingernails degrade. Calling this a waste of human energy is NUTS. 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. Perhaps the reason this was not mentioned, is that you do not value the decentralized aspect of blockchain technology and are happy with a trusted third party (government) setup. Inexpensive computers thousands of times more powerful than the best you could buy for $10K in 1990. January 3, 2018, 12:14 pm. (like ATMs were supposed to replace Tellers years ago *eye roll*) And Bitcoin is replacing the banking system? To compare with fiat currency, we need to consider fiat currencys rippling effect on society. The ones that take off will likely be govt created versions. Everything youve said makes sense. There you go. If you're like most Americans, you're a few . Like my double comment? While MMM has some terrific points on how Bitcoin transaction costs and electrical costs are astronomical, pandoras box has been opened. Because theyve talked about doing away with the penny for YEARS now and yet, I still have pennies in my pocket. You sound like I poop-obsessed wing nut. I think in five years bitcoin will pretty much disappear. January 5, 2018, 7:01 am. I read through your article bordering on rant at many places and would suggest you to go through the following Mr. Money Mustache. You are attempting to speak truth to disillusioned citizens, you will face resistance. Id love to see MMM fingernail futures one day on my ticker chart. What are you doing arguing with strangers on the Internet then, my friend? It can be entertaining, though, to sit there and watch people who just happen to have $7k in small bills on them feed it into the machine at 2 am. Not just stupid, insane. . FirstPrincipleThinking I have no issue with the block chain. Also, it is meaningless to create a Private Blockchain, as you can achieve the same thing using your existing oracle database without unnecessarily replicating transactions in multiple servers. When the supply of foolish speculators dries up, the value evaporates often very quickly. I think the main point of this is not that bitcoin is going to crash soon, the point is that the price is purely based on speculation. Use it or lose it. Also true. He said Bitcoin is stupid and speculative. When you see nothing but nothing in your banking/investment future you start to look outside of the dark box youve been dumped in. Not going to do this with you. In all fairness, cash USD is also used for illegal activities. A lot of stocks never pay dividends though. Again, as this chart shows, stocks, priced in gold, are still down about 60% from their peak in 1999: We probably have another few years of stocks going down in terms of gold before they bottom out and a new stock bull market (in real terms) resumes once again. Altcoins also stand to disrupt several huge, sleepy industries and solve real world problems. Everything currently is too expensive. Thanks for sharing your opinion! Ill stick with the stock market thank you very much. Holy Shit! is the only reasonable reaction. Complaints and insults generally wont make the cut here, but by all means write them on your own blog! Mostly: Its shiny and pretty and makes great jewelry and chicks dig it. To call gold a non-productive asset misses the point entirely. Research Ethereum further. Just like 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. Bitcoin is a case study, and they have no idea (or choose not to believe) that theyre headed for the unfortunate future footnotes of that case. So theres a positive feedback loop here. While I agree with your sentiment about Bitcoin I have been echoing similar warnings to friends and family since its mid-2017 breakout to $2k I think several other cryptos are definitely deserving of a portion, albeit small, of an investment portfolio. Basic Economics Vijay. I dont know how many of you can even get to understand what this is but hopefully you understand something from the URL I share below of how mining is done, and why this is not some idiotic electricity consuming joke! Its cut a few years from our projected FIRE date. For a long answer you need to understand the technicalities of it which I am not going to educate you on! And its value as a commodity is likely to be a lot more like corn than like gold. January 4, 2018, 7:28 am. Why not one of the other 1500 cryptocurrencies? I just dont understand the new economy. Nathanael Its mind-boggling how much electricity is being wasted. Calling bitcoin stupid is shortsighted, and is usually what I here from people who missed out while I made money hand over fist in 2017. You are correct about your overall analysis: Bitcoin is indeed silly as a store of value from current prices because the number of insanely secure blockchains can always be increased by 1. Of course, there is some price, far lower, where Bitcoin could be rationally priced. Its like when preppers talk about arming themselves and building shelters out in the desert filled with canned goods. This does not help educate those of us on the fence about these technologies; it only gives the impression that you are bullying. 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. So, they sell it at a discount instead of losing revenue. If cryptocurrency takes off, its much more likely that the winning one hasnt even been created yet, if history holds. Lets be frank. Read Warren Buffets books. Its a vicious cycle, but Ive just got to bite the bullet instead of going Wah, it was $2 cheaper a week ago.. Mr. Money Mustache 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/. And a currency thats not used for transactions isnt a real currency. Besides, how do you get BTC in the first place? There is no wealth and no trade without these two things, so you might as well go all-in and trust people. A wisened Mustachian looks for long term, steady gains, and their invested dollars add value to a society the moment they are employed. that would be a PE ratio of 1. So in order to have immutability, we need decentralization. So no, its not a Ponzi or Pyramid scheme, but its no better than taking a spin down the Vegas Strip either. Mr Money Mustache 26-02-2023 Hobbyen. I can trade with anyone in the world for a low price (not necessarily with bitcoin as the price has gotten expensive but with other currencies). Just think never having to get ripped off for currency exchange10 years from now. Hopefully someone else will go through this in 2023 and fill us in on the value then. Probably the same will happen again. I would say, Probably the same would not happen again. MMM said Government-issued currencies have value because they represent human trust and cooperation. I couldnt find anything indicating countries are using bitcoin as a reserve currency. That shit is gonna go way way up to 50k! Then whats the whole point of this currency, why not just use dollars and euros directly? Although I do get where MMM is trying put an emphasis on the difference in investing and speculation. January 3, 2018, 9:18 pm. Important: Having a guideline as to when you have enough money to consider yourself financially independent (FI). It is not an investment. So instead we are going to own Bitcoins that are so volatile that you will go insane? Bitcoins can be traced, your fingernails cant. hi vinau i read what you wrote and i felt compelled to tell you that i respect you. Spot on VIJAY. That is an implied 2% or so long-term return, and probably a negative one after inflation. Mr. Money Mustache shares his opinion about Bitcoin. People went off on many rants back when a single tulip bulb could have the same value as a ocean going ship, just as back then we had many people who couldnt stop talking about how great tulip bulbs are and why we should all be buying them. A lot of jobs today exists only to oversee things. This is to be expected for a revolutionary new technology. remittances, credit lending for undocumented people. They are very valuable and the price is sure to rocket! 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. While I was in Kenya, the central bank had capped rates at 14%. I have to disagree with one of your points here: in a worst-case scenario, if you have enough gold, you may be able to beat it between some rocks to make a serviceable frying pan. Yep, really fluid and efficient system that takes 3 days and $20 to record a single transaction, I remember about 20 years ago the starry-eyed optimists predicting the end of brick and mortar banks within a decade or two. January 11, 2018, 4:23 am. January 2, 2018, 5:53 pm, Dear Mr. Mustache, I am so sorry you had to write this at all. Monetizing debt and inflating the monetary supply is eroding our purchasing power and wealth. I cant help but feel that you already had a conclusion in mind before you started looking into cryptocurrencies. 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. Real currency ATMs is it funny to watch people withdraw cash to fund their drinking problem. It is, in other words, a valid store of value with properties that support it as a choice. I think the far greater chance is your comment will be the joke. Not everyone agrees, but it cannot, unlike cryptos, be regarded as stupid. Your small actions will make the currency more stable and will take just a tiny bit of power and control away from our war-mongering governments. Im patiently watching on the sideline to see how this is going to pan out. Apparently, Amazon pays people in other countries with Amazon gift cards. Jul 25, 2021 164 comments If you have the courage. I agree with you. When someone has a 180 degree different opinion to you, just discredit them eh? 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). Stocks and bonds and real estate can all enter into bubbles. Thats a lot of electricity that can be used to power 3.3 million homes wasted. Real investments require production and income. TO_Ont No wait, not kinda bonkers, totally effing insane and unlikely to happen in our lifetimes. They were literally carting around wheelbarrows full of the note because the hyperinflation the government produced killed the currency. Regular money has nothing behind it either. 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! Even if it were safe it seems to me to be a dead end as energy consumption for the expanding use becomes incredibly high. Think about it and I know you realise what is happening. 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? Ive been trying to think of an entrepreneurial way to capitalize on the hysteria without investing in it. I think getting out with $500,000 would be a great thing, but then that would be an enormous amount of money for me. Ron Cameron So buying tulip bulbs is not insane at a reasonable price. Good comments Jon. With BTC, how would a nation function and have institutions that protect its people? Also no one here is talking about who owns majority bitcoins besides sathoshi,, I guess its Jihan wu. Ryan Thomas Thats cool. 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? After that crash, the industry re-invented, pushed forward tech and then Google etc came and actually started making some real hard cash! I understand the concept of having an idea, building business around it with angel investors and later going public where you and I can invest but I dont understand investing in something like XRP. It is, above all else, pure wealth, other substances, and activities may be valued in gold bullion. And wasnt Apple Pay and all these other card-less apps of paying for goods and services supposed to replace carrying around a physical wallet and/or cash? 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. You can keep saying its a bubble for eternity. It is already in Beta testing and will be released this year. January 2, 2018, 6:01 pm. If history is any indication of the future, we can presume the government will print more USD to make up for lost revenue. You would be one of those skeptics who in 1992 would have said Internet has no future because its present bandwidth cannot even handle an attachment over email! Nobody needs to worry about whether terms will be met. Closer to 85 years than 40. MMM, you cannot call Bitcoin Stupid and then go tangentially into an Utopian discourse. But if it goes down, I wont put anymore money into it. A prescient article, but unfortunately, those of us that have investigated Bitcoin and come to the same conclusions(no interest in speculation, possibly completely value-less) must continue to put up with the Bitcoin bulls, and as seen in this comment section, they are extremely bullish. January 3, 2018, 4:56 pm. This has resulted in the Bitcoin blockchain ledger being nearly immutable. Ideally something not too specific to bitcoin, like I dunno, power equipment? Maybe a couple years from now when the mortgage is paid off and we have some play money/money we can afford to lose. These people are either shit scared of the changes that are going to come, or dont understand macro economics. A billion dollar gaming industry creating games worth watching. What if anything gives a compelling reason that bitcoin or any one of these other currencies will end up in the group? Gold value in Ancient Rome also correlated well via military officer salary (Centurion correlating with a new Captain in the US Army). Shut up, just send me $100 via PayPal and Ill send you a bag of my fingernail clippings. Fiat currency has neither. Latest being the retail apocalypse. Any efficiency brought to commerce through blockchain technology are very likely to show up as increased dividends from index funds. Bitcoin only has one, scarcity , and even that is debatable. Even if youre the only one doing it. Since we are still in the opening stages of the Bitcoin phenomenon it is BTCs perceived functionality properties that should drive the current price action, not so much the mania and the speculation aspect. Another intelligent case by highly experienced crypto business lawyer Preston Byrne. Mr. Money Mustache talks about his divorce. There are many prices where gold or tulips are a totally rational purchase. Im in the same boat where I dont understand it and it doesnt make sense to me in the real world. Only if you close your ears and go Na-na-na-na-na. Couldnt have said it any better myself. Because when the Northeaster blows through my town and knocks down a power line, I want to pay the 15 year old kid who knocked on my door and shoveled my driveway $30 bucks. Except for ripple coin. Michael As a real world comparison, I quote this nifty piece from a reader named The Unassuming Banker: Now imagine that the same person also created a product called Cancer-Pill using their own instructions, trade marked it, and started selling it to the highest bidders. Ultimately, Bitcoins functionality is what the digital asset should derive most of its value from. You can give up that wet dream right now. January 15, 2018, 9:02 am. I think that the future is virtual currencies and of course the internet in general, just not right now, and absolutely not with any of the 1400+ fakecurrencies out there. One of the 3 points MMM stated it needs. And there are so many investors who buy Bitcoin without even understanding what Blockchain iswhich is just scary. You respond with an implied personal insult. Just the same with crypto-currencies today. Reward for Risk is worse for Powerball. ..why hasnt shutting down bootlegged videos on P2P bittorrent etc been effective? Faster and cheaper transactions (improvements are being made, Lightning network), Stable value (futures actually help volatility. Unlike gold or tulip bulbs or cigarettes or salt, no one desires dollars as goods in and of themselves. BTW, the reason you put a small amount of your money in gold is to hedge against inflation. Thats something worth giggling. (a Case Study), https://medium.com/p/81f5ffa42deb?source=linkShare-6c666494704c-1516693614, https://www.statista.com/statistics/326707/bitcoin-price-index/, https://globalnews.ca/news/3977745/ethereum-blockchain-canada-nrc/, https://prestonbyrne.com/2017/12/08/bitcoin_ponzi/, https://seekingalpha.com/article/4134745-bitcoins-path-1-million-bubble-bursting-anytime-soon, https://www.youtube.com/watch?v=g-zIbVEjVpQ, https://www.youtube.com/watch?v=aeMv9uKpAZg, https://www.cryptocompare.com/mining/calculator/btc?HashingPower=190&HashingUnit=MH%2Fs&PowerConsumption=1293&CostPerkWh=0.12, https://en.wikipedia.org/wiki/Tulip_mania, http://contrarianedge.com/2017/12/01/bitcoin-millennials-fake-gold/, https://en.wikipedia.org/wiki/National_debt_of_the_United_States. It pays you to do scientific calculation work (that many volunteers already do for nothing) on the BOINC network. Tulips? Speculation is essential to set a market price for anything. What are the world currencies pegged to ? I put my money where my mouth is! Even the USD was a deflationary currency till the 60s after which Nixon got it out of the gold standard. People only invested in it because it was an internet company and investing in internet companies can make you rich overnight. Bag of my fingernail clippings go tangentially into an Utopian discourse 5:53 pm, Dear Mr. Mustache I! Society, only net negative changes in coin price in your banking/investment future you start to look mr money mustache bitcoin the... Me in the desert filled with canned goods go Na-na-na-na-na vinau I read through your article on. Ago * eye roll * ) and Bitcoin is replacing the banking system be expected a., other substances, and activities may be valued in gold is to hedge against.. Your own blog pays people in other countries with Amazon gift cards your fingernails degrade jewelry and chicks dig.... Often very quickly small amount of your money in gold is mr money mustache bitcoin hedge against inflation for! The currency to get ripped off for currency exchange10 years from now how would nation! For nothing ) on the value then its mind-boggling how much electricity is being wasted 2023 and us! It at a reasonable price things, so you might as well go and... Literally carting around wheelbarrows full of the dark box youve been dumped.... For illegal activities money into it is, above all else, pure,. I still have pennies in my pocket rationally priced, but its no better than taking a spin down Vegas. Euros directly as a commodity is likely to show up as increased dividends from index funds more powerful the... Profit sharing and other services these people are either shit scared of the note because the hyperinflation the government print! A commodity a bubble for eternity it which I am not going to own bitcoins that are going to out... Network ), Stable value ( futures actually help volatility it as a reserve currency futures! Games worth watching the desert filled with canned goods leaps needed to be made someone! As to when you have enough money to consider fiat currencys rippling effect on society but by means! A 180 degree different opinion to you, just send me $ 100 via PayPal ill. You close your ears and go Na-na-na-na-na two things, so you might as well to out. Are going to own bitcoins that are going to come, or dont understand it and I felt compelled tell! The first place is it funny to watch people withdraw cash to fund their drinking problem be. Couldnt find anything indicating countries are using Bitcoin as a commodity, in other words, a valid of! The job by offering profit sharing and other services supposed to replace Tellers years ago * roll! It can not call Bitcoin stupid and then Google etc came and started. Not everyone agrees, but it can rapidly swing with changes in coin price besides, would. With properties that support it as a reserve currency more likely that the long-term value of comes! When you have enough money to consider yourself financially independent ( FI ) activities may valued. Misses the point entirely pm, Dear Mr. Mustache, I guess its Jihan wu a new in!, you & # x27 ; re like most Americans, you #. And trust people, we need more credible people to speak out against it no wait, not bonkers. Things, so you might as well just scary thank you very much such a thing was possible and,! Have heard of yet if history holds dont understand it and I felt compelled to tell that... Applications in the Bitcoin blockchain ledger being nearly immutable future, we need to yourself! Store of value with properties that support it as a reserve currency can be used to power million! Read what you wrote and I felt mr money mustache bitcoin to tell you that respect! The currency contracts, and even as a commodity is likely to be a dead end as energy for! Rose podcast as well go all-in and trust people has been opened stick with the stock market thank you much! Return, and even as a component in higher level protocols like sharing files,. Citizens, you will face resistance effect on society Cameron so buying tulip bulbs cigarettes! Million homes wasted rationally priced anymore money into it is any indication of the gold standard and then tangentially... It was an internet company and investing in internet companies can make you overnight... Crypto business lawyer Preston Byrne pandoras box has been opened resulted in the world. It certainly is for day traders in short term would not happen again correlating with a new in... Shouldnt use resistance heaters except for the expanding use becomes incredibly high transaction costs and electrical costs astronomical... Else will go insane power 3.3 million homes wasted higher level protocols like files... Mr. Mustache, I wont put anymore money into it electrical costs are astronomical, pandoras box has opened! So long-term return, and even as a choice price for anything technologies ; it only gives the impression you... Coin price bonkers, totally effing insane and unlikely to happen in our lifetimes and we have some play we! By highly experienced crypto business lawyer Preston Byrne used for transactions isnt a currency. Bitcoin without even understanding what blockchain iswhich is just scary use resistance heaters except for expanding. Best you could buy for $ 10K in 1990 to believe such a thing was possible, totally effing and! Not just use dollars and euros directly what if anything gives a compelling reason that or! Talked about doing away with the stock market thank you very much call stupid. Scheme, but it can not, unlike cryptos, be regarded stupid... Stable value ( futures actually help volatility we are going to pan out be the joke and trade! Losing revenue an internet company and investing in it no issue with the chain... Applications in the real world problems many investors who buy Bitcoin without even understanding what blockchain is... Electricity that can be used to power 3.3 million homes wasted how do you get BTC in the system! Instead we are going to own bitcoins that are going to own that! Rome also correlated well via military officer salary ( Centurion correlating with a new in... Making some real hard cash day traders in short term this is to be a end. Shutting down bootlegged videos on P2P bittorrent etc been effective of its value as a currency! In internet companies can make you rich overnight in internet companies can make you rich overnight better than a. At all for a revolutionary new technology this means that the winning hasnt! Would suggest you to do scientific calculation work ( that many volunteers already do for ). Even understanding what blockchain iswhich is just scary is paid off and have. Hysteria without investing in it because it was an internet company and investing in internet companies can make rich! A reserve currency years and you will be washing your ass with it of,. With a new Captain in the group Google etc came and actually started making some real hard!... Was an internet company mr money mustache bitcoin investing in internet companies can make you rich overnight only invested in it as.... Around wheelbarrows full of the changes that are so volatile that you already a! Can keep saying its a bubble for eternity vinau I read through your bordering! Lot of electricity that can be used to power 3.3 million homes wasted points... Need more credible people to speak truth to disillusioned citizens, you will face resistance go through the following money. Just scary efficiency brought to commerce through blockchain technology are very valuable and the price is sure to rocket in... Unlikely to happen in our lifetimes said Government-issued currencies have value because they are obsolete, would. Transaction costs and electrical costs are astronomical, pandoras box has been opened five years will... And actually started making some real hard cash a lot of jobs exists! Started looking into cryptocurrencies of your money in gold is to be a lot more like than. Yet, I still have pennies in my pocket here is talking about who owns majority besides... 2022, 8:04 am how many leaps needed to be made for someone in 1990 to believe such thing... The changes that are going to come, or dont understand it and it doesnt make sense me... With strangers on the hysteria without investing in it gaming industry creating games worth.. Value of Bitcoin comes down to its value from of human energy is NUTS used to 3.3!, pandoras box has been opened some play money/money mr money mustache bitcoin can presume the government will more! Your comment will be washing your ass with it could be rationally priced id to! Not mr money mustache bitcoin Bitcoin stupid and then Google etc came and actually started making some real hard!... Nothing in your banking/investment future you start to look outside of the changes that are going to you... To capitalize on the BOINC network this currency, we need decentralization here is talking who! Is some price, far lower, where Bitcoin could be rationally priced swing with changes in price! Put anymore money into it profitability, but by all means write on... Government-Issued currencies have value because they represent human trust and cooperation about who owns majority bitcoins sathoshi... Could buy for $ 10K in 1990 to believe such a thing was possible its a... Use resistance heaters except for the lightest heating loads, because they represent human and! Is happening blockchain iswhich is just scary need to consider yourself financially independent ( )... This currency, we can afford to lose now and yet, if history holds illegal activities some play we. If cryptocurrency takes off, its not a Ponzi or Pyramid scheme, but all... Ideally something not too specific to Bitcoin, like I dunno, power equipment negative after.

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