information Why bitcoin may become virtually worthless: Finance professor

Hugo_Strange said:

... I’m not touching Crypto.

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Obviously a good choice for you, stay away, at least until you see it is exciting again.

Hugo_Strange said:

...But as we’ve seen the market is taking no BS and you could be taken out very quickly....

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No, "Taken out very quickly", what?
How, why?
We are not talking about commodities contracts trading where you get a margin call based on "100 to 1" leverage, and actually get "taken out" really fast.

With Crypto you (or at least some people) are able to start with TIME (no money) just a bit of effort, and turn it into real spendable, and/or tradable funds.



<Back on topic>
Why bitcoin may become virtually worthless!

(Almost) Ten years ago Bitcoin was literally worthless and the paradise of geniuses who "played with it" did not have to debate with uneducated people to see the huge potential.

from cents to $thousands the money has already been MADE

ALL crypto DEAD without Quantum Encryption

Quantum Computing HACKS EVERYTHING -

unless it has Superior Quantum Encryption

btc now a financial creature of the financial establishment

so ok to trade - u bets u money and u takes ur chance.....

I own buybtc.icu AND byebtc.icu so I am hedged.....

I am a dollar bull until gold trades over $2000.00/ounce

and I think anything over 4% especially on U.S. govies

is going to be something U wish U wud've locked in for the Long Term -

but in the long term, we are all dead, as they say.....

China’s central bank previously called for a new global reserve currency “that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies.”

How many dollars did the Federal Reserve print today?


We don’t know.


How many Bitcoin were produced today?


1,800 (06/12/18)


Software engineering beats financial engineering.

a financial system that works

is based on CONFIDENCE

which is based on TRUST

which is based on TRUTH

but today we live in a global society that wants to debate truth, and cannot even do that : witness both presidential candidates calling our educational system "failed" when that is not even true - our educational system is the greatest - it is our society that has failed to produce citizens that are EDUCABLE - and "work ethic" camps are not the fix.....

do you seriously believe that China wants to earn the confidence and trust of the global investment community?
communists nationalize not only whole companies but ENTIRE INDUSTRIES
( just in case you "forgot" how communists operate...)

social engineering beats all other kinds of engineering

jamesall said:

What currency do you take out?

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euro

otismo said:

...our educational system is the greatest...

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Are you claiming the USA still has the "greatest educational system"?
In what state did you go the SKOOL? And did you finish collageeuge?

urlurl said:

yup, 100% agree.

in the future, a coin/token backed by a currency will be used for transactions. something stable.

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Stable? Like the USD?
and you LOL at others?

Bitcoin is an ASSET CLASS for trading. That is distinct and separate from the claim it is a currency. Hyun Song Shin, the economic advisor and research director of the Swiss-based Bank for International Settlements (BIS), told Bloomberg that Bitcoin and other cryptocurrencies are “far from maintaining a monetary system” and “just pretend to be real currencies “. On that score, he is absolutely correct.

You have to separate reality from fiction. That does not mean that Bitcoin is not an asset class. It just is not a currency that has any real footing within the economy. So there is NO POSSIBLE WAY any government will allow a PRIVATE cryptocurrency to replace a national currency. That will NEVER happen. However, governments want to ELIMINATE cash for tax reasons. Only about 4% of transactions today are in paper currency, to begin with. The bulk of our monetary system is already digital currency that does not exist.

The pitch that cryptocurrency will circumvent central banks and governments is just absurd. You have to separate PRIVATE from PUBLIC. That is the issue against Bitcoin.

The commercial banks that are looking at it are for non-currency issues of the blockchain. Goldman Sachs is looking to be a custodian to hold money for cryptocurrencies to make money. But the sales-pitch that Bitcoin will become the reserve currency, replace central banks, and eliminate national currencies is really way out there.

The FAX machine was invented by the Scottish inventor Alexander Bain who worked on chemical mechanical fax type devices. Back in 1846, he was able to reproduce graphic signs in laboratory experiments. He applied and received a British patent #9745 on May 27, 1843, for his “Electric Printing Telegraph”, but it took more than a 100 years to actually become usable. Yes, you can see the future and no doubt you could envision sending photographs around the world back in 1843.

There is just a huge gap between technology and its implementation.

Back in the 1960s when integrated circuit chips first appeared, it was obvious we would shrink a computer to fit on a desktop. The problem was trying to figure out what people would do within. Later Microsoft, Lotus, etc., figured out how to use it and the computer age began for the mainstream.

We are NOT there yet in cryptocurrencies any time soon.

Can the economy move to purely electronic currency? The answer is NO – not yet. We may still be looking at that well AFTER 2032. India and Sweden have found it impossible to get away from paper money. There is a large segment of the population that do not bank no less own a computer or even a smart phone. The EU passed a law calling it everyone has a “right” to have a bank account, which was really a step to try to move closer to an electronic currency.

You are looking at the basic requirement of a generational shift. As the older generation dies out, money will become completely digital, newspapers will see their last print, and paper books may be found only in a museum.

Things always change – but not as fast as people think.

The DOT.COM Bubble was all about the rage of how the internet would replace stores. The prices got ahead of the reality. Eventually, the technology changes the system. But it always takes time. Eventually, new higher were made and a more solid market emerged – with TIME!

Cryptocurrencies are an “asset class” meaning they are tradable with futures. However, that is a far cry away from being an actual currency that is legal tender accepted everywhere including taxes. It is an instrument to trade. Just don’t marry the trade.

Latest Trade Advice:

A monthly closing below 2950 will confirm the long-term trend is turning down. A year-end closing below 4150 will point to a drop back to 775 area.

~ The 34 Year Buzz!! said:

Stable? Like the USD?
and you LOL at others?

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Levi_charlz said:

China’s central bank previously called for a new global reserve currency “that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies..

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Ummmm Yeeeeaaaaaah... Aside from the smaller/less well know/less traded (less hyped ???) cryptocurrencies, I'm not seeing a whole lot of stability in there either....

https://www.cryptocurrencychart.com...MR,ETC/price/USD/linear/2017-12-14/2018-12-09

Bitcoin is a store of value and other, more centralized, digital assets will be used for utility purposes imo. Like gold, bitcoin is the least centralized form of digital assets for the following reasons:

- First mover advantage, came before greed. New digital assets are overproduced and overbought similar to the sports card bubble of the late 80’s early 90’s

- Gold canNOT be digitalized. Digitized gold, or any precious metal, cannot be distributed online without it becoming an IOU which centralizes the asset and defeats its purpose as a hedge to governance.

- Even if government controlled digital currencies or bank backed digital assets start dominating the industry it won’t break the need to store wealth in a system not tied to centralized governance. In fact, it will make Bitcoin more relevant as a hedge to government control and the risk involved.

So my answer to will bitcoin be worthless in the future... LOL.

Bitcoin, from the mind of someone that has followed the industry since 2012, is the crypto asset that has the least risk as an investment. Not because it has the best utility but because it is already established as the best hedge to government control and centralized governance.

Bitcoin's fundamentals are strengthening. Don't let the price distract you.

The best performing asset in the last 10 years isn't going anywhere.

Bitcoin has become stronger as the price has declined.

Since December 2017’s all-time high, Bitcoin is down to $3,600.

Mainstream media is screaming that “Bitcoin is dead!” and the Twitter trolls are taking victory laps at the perceived demise of the “ponzi scheme.”

Fortunately, nothing could be further from the truth. The fundamental drivers of the decentralized technology network are actually growing. Here are key data points:

1. The number of Bitcoin blockchain wallet users continues to increase dramatically over the last two years.

1. The cost per transaction continues to decline through 2018.

1. The total number of transactions is increasing over the last two years.

1. The number of confirmed transactions per day has increased since February 2018.

1. The number of transactions per day excluding the popular addresses is also increasing through 2018.

1. On a linear scale, the hash rate has approximately quadrupled in the last year or so. The hash rate also continues to look healthy on a logarithmic scale.

1. There has also been a 98% increase in the number of Bitcoin nodes running over the last two years, according to Bitnodes.

Price is only one measurement of value for an asset. While it is important, it is not an important measurement of future value. The underlying fundamentals for the Bitcoin blockchain appear to be growing stronger despite the decline in the current price.

Don’t be distracted by the noise. Focus on the fundamentals. Bitcoin isn’t going anywhere.

Jv1999 said:

Yis. Bitcoin and other make-believe currencies will vanish into thin air. i understand dis nao.

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I’ve heard this a million times. These statements make me want to get back in. Love contrarian. Bought in previous downtrend - sold when everyone was talking about it last year - I might buy back in now with all the negativity.

Btw - Could you please provide a currency that is NOT “make-believe?”

shig said:

I’ve heard this a million times. These statements make me want to get back in. Love contrarian. Bought in previous downtrend - sold when everyone was talking about it last year - I might buy back in now with all the negativity.

Btw - Could you please provide a currency that is NOT “make-believe?”

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none
but some are more likely than others to be worth 0 or 50% when u wake up 2morow

alcy said:

none
but some are more likely than others to be worth 0 or 50% when u wake up 2morow

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Just as some are more likely than others to be worth 10x or 50x when you wake up tomorrow

shig said:

Just as some are more likely than others to be worth 10x or 50x when you wake up tomorrow

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yes true..

but when faced with two make believe currencies.. maybe we need to assign our own value factor to each.. why not call it stability.. then usd wins hands down vs btc.

alcy said:

yes true..

but when faced with two make believe currencies.. maybe we need to assign our own value factor to each.. why not call it stability.. then usd wins hands down vs btc.

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What’s make believe about them? Iexec (Rlc) just partnered with IBM on their decentralized cloud computing technology. I’m quite certain that a Fortune 500 company like IBM doesn’t think they’re make believe.

If you look at a lot of the stocks on the stock market that do extremely well over long periods of time (CocaCola, Pepsi, Apple, Microsoft, Visa, many blue chip stocks) you'll notice that they're all companies that create long lasting value. You'll always get the latest iPhone, drink another can of coke/pepsi, always create fees on credit cards, etc. Warren Buffet said he only invests in companies that create lasting value. The problem I see with Bitcoin is that it doesn't create lasting value, it doesn't provide much of a service at all. It seems very speculative. I think decentralizing industries will be a move that creates lasting value and I actually see crypto such as Ethereum or those like it having a future (if not be it at the current moment). I'm taking the Apple approach and am not adopting these technologies right away. Let the market mature first and see what fizzles out and what works and play the long game but don't invest right away. See what sticks around and what doesn't. Odds are the crypto that "makes it" probably hasn't even been created yet.

As of right now I'm just a passenger looking out the window to watch what happens with crypto but I'm not taking part in it myself.

Ask yourself this.

Will the dirty, disease infested, paper currencies go digital? Most transactions are already done digitally through the monopolized Visa network.

What is better to hedge against government controlled currencies than bitcoin when gold cannot be digitized without making it an IOU which carries trust from the issuing party?

Bitcoin... it doesn’t have to be a currency to carry value when it’s the best digital store of value due to its lack of governance or centralized counter party risk (unless holding on an exchange).

shig said:

I’ve heard this a million times. These statements make me want to get back in. Love contrarian. Bought in previous downtrend - sold when everyone was talking about it last year - I might buy back in now with all the negativity.

Btw - Could you please provide a currency that is NOT “make-believe?”

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you're supposed to go along with my FUD because it helps crash the market.. geez.

Jv1999 said:

you're supposed to go along with my FUD because it helps crash the market.. geez.

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my bad

Some how, any digital coin that one can mine to own?
Is a scam.

This is hilarious....
a video about Jeb Bush and his reaction to a note that Laura Bush gave him.
Top comment was this:
t says - your inheritance was invested in cryptos