Taking a serious look at BTC. There is a lot of (and I mean a LOT) of hype. Some of the proponents, ie, podcasters at Citizen Bitcoin, are in ga-ga land over it. They seriously think that one BTC will eventually be worth north of $1 million, that it will replace all fiat, etc. If you thought that the initial internet craze of the mid-90s was nutty, listen to the BTC proponents.
It is interesting to hear naked greed cloaked in high-sounding palaver.
citizenbitcoin.world
Will be reading this over the holidays, knowing full well that he is selling BTC:
amazon.com
To succeed, it must become widely accepted as legal tender, something that is not yet the case but is admittedly more so. I have some doubts as to its wide acceptance because of its volatility. It will be hard to price a widget or a haircut or a bar of gold in BTC when its value is constantly changing as new owners chase it.
Because it is limited in amount, the argument can be made that it is a Ponzi scheme. The increasing value depends on getting new customers to keep bidding it up. When a security issue happens (it eventually will), and new customers stop buying, the downdraft will be terrific. It already had one a few years ago. Why assume that it can't happen again?
BTC's most substantial advantages are its first mover advantage plus its decentralization. But decentralization can be made illegal in an instant if a government fears that BTC is indeed crowding out its fiat currency. It can be legislated out of existence, illegal to hold just as gold ownership was illegal for US citizens for many years.
But I bought some GBTC, and am enjoying a few days of nice returns. But I am keeping a very close watch on it. Going with the momentum, though I'll drop it at the first hint of trouble.
Sometimes I think that BTC will make money for the book sellers, the 2% fee trusts, the pundits, etc., just like everything else.
If it's too good to be true, it is too good to be true. An old maxim that applies especially to money. |
