information Why bitcoin may become virtually worthless: Finance professor

[lennco]

[Fox Business] Julia Limitone Fox BusinessDecember 6, 2018

The world’s largest cryptocurrency is beginning to wind down and is close to becoming worthless, according to a Santa Clara University finance professor.

Bitcoin soared above $19,000 at its peak a year ago, only to fall sharply. It’s currently hovering around $3,600 level, according to Coindesk.

“Fundamentally bitcoin has not lived up to its hype,” Atulya Sarin said to FOX Business’ Stuart Varney on Thursday. “Primarily if you look up all the activity around bitcoin it’s mostly around creating. It doesn’t seem to have too many use cases.”

Unlike paper money, which is backed by a central bank which decides when to print and distribute money, bitcoin is issued through mining which uses computational power to maintain a record of who owns the cryptocurrency. Without it, no transactions would be possible.

Sarin said right now the problem is that it costs more to mine bitcoin than to actually own it -- and “that’s not sustainable.”

“If there is no transaction happening and there’s no record of who owns what then all you have is a set of numbers and all those numbers are worthless,” he said.
https://finance.yahoo.com/news/why-bitcoin-virtually-worthless-finance-165126365.html

What do you guys think?
Are Crypto Domains still worth it?

 

[kite26]

[Fox Business] Julia Limitone Fox BusinessDecember 6, 2018

The world’s largest cryptocurrency is beginning to wind down and is close to becoming worthless, according to a Santa Clara University finance professor.

Unlike paper money, which is backed by a central bank which decides when to print and distribute money, bitcoin is issued through mining which uses computational power to maintain a record of who owns the cryptocurrency. Without it, no transactions would be possible.

Sarin said right now the problem is that it costs more to mine bitcoin than to actually own it -- and “that’s not sustainable.”

“If there is no transaction happening and there’s no record of who owns what then all you have is a set of numbers and all those numbers are worthless,” he said.
https://finance.yahoo.com/news/why-bitcoin-virtually-worthless-finance-165126365.html

What do you guys think?
Is Crypto Domains still worth it?

 

[Internet.Domains]

[Fox Business] Julia Limitone Fox BusinessDecember 6, 2018

The world’s largest cryptocurrency is beginning to wind down and is close to becoming worthless, according to a Santa Clara University finance professor.

Bitcoin soared above $19,000 at its peak a year ago, only to fall sharply. It’s currently hovering around $3,600 level, according to Coindesk.

“Fundamentally bitcoin has not lived up to its hype,” Atulya Sarin said to FOX Business’ Stuart Varney on Thursday. “Primarily if you look up all the activity around bitcoin it’s mostly around creating. It doesn’t seem to have too many use cases.”

Unlike paper money, which is backed by a central bank which decides when to print and distribute money, bitcoin is issued through mining which uses computational power to maintain a record of who owns the cryptocurrency. Without it, no transactions would be possible.

Sarin said right now the problem is that it costs more to mine bitcoin than to actually own it -- and “that’s not sustainable.”

“If there is no transaction happening and there’s no record of who owns what then all you have is a set of numbers and all those numbers are worthless,” he said.
https://finance.yahoo.com/news/why-bitcoin-virtually-worthless-finance-165126365.html

What do you guys think?
Is Crypto Domains still worth it?

Crypto is moving from Utilities to Securities. Just as the early internet has changed, so will crypto. Will crypto look different in future? Yes.....Will crypto be gone in future? ABSOLUTELY NOT.....

 

[Keith]

But our currency has value, bitcoin and the rest do not.
In fact, how is the value of all those digital coins valuated?
Oh, CURRENCY!!! Our dollars....

Our currency has value because you are told it does. In reality, it’s valueless if you can just print new paper whenever deemed necessary.

As to the value of crypto, it’s valuated on how it acts. Most of these tokens aren’t currencies at all. They are real companies which use tokens in place of shares of stock to publicly operate. Once you can grasp how and why companies use crypto, it all makes perfect sense!

 

[alcy]

well all money is basically illusion.. btu at least the dollars in your bank account won't go to zero or down by 50% any time soon.

same way as TVs evolved.. internet evolved.. phones evolved.. and everything else in life evolves.. crypto will evolve too... how no one knows.. but its silly to think the first product of some new concept or idea will eventually end up anywhere other than a museum or antique store.

 

[urlurl]

why would i put crypto on a credit card or bank account to just buy something. that will incur a spread when i convert and the fee's per transaction of bitcoin are no longer cheap.

my debit and credit card are just fine with real money.

the world worked fine before and will work fine after crap coins are gone...

just a big pump and dump scheme

 

[Hugo_Strange]

You can still make a small fortune in today’s market. You just need to start with a large fortune...

 

[Keith]

IBM partnerships are so blaze'. IBM partnered with XLM... there was a small pump in price... now XLM has crashed like the others.

Crypto is ded. Even if Google partnership. You can't really expect make believe currencies to flourish even with the help of successful megagiants.

If megagiants could make anything successful, they wouldn't be so picky with their joint ventures because then anything they touch would turn to digital gold, which means they'd randomly touch anything. /touch.

You don’t become one of the biggest companies in the world by making bad business decisions.

The fact is this - blockchain and crypto aren’t going anywhere. You can get on board or be left behind. It’s just that simple. Good luck!

Btw, crypto is very similar to domains in that success comes to those that understand how to pick winners

 

[Hugo_Strange]

 

[iowadawg]

Something crypto may be in the future.
But will bitcoin be around in the future?

 

[~ The 34 Year Buzz!!]

People who want to learn and be accurate will eventually be able to give quality information about Bitcoins. Others completely uneducated opinions are (perhaps) worth a laugh once in a while.

FYI: The "Santa Clara University finance professor" provides a great reason to avoid attending Santa Clara University.

Something crypto may be in the future.
But will bitcoin be around in the future?

Several established altcoins offer transaction fees below one penny. That alone has real value.

 

[~ The 34 Year Buzz!!]

Debt of USA or any other country has not a damn thing to do with some made up internet currency.
Understand that and then we can talk.

The USD is a made up currency; Understand that and then we can possibly talk, maybe.

 

[Keith]

Okay, take your bitcoin (oh wait, you can't) to your local store and try to buy a pack of gum.

Absolutely false. You can load Visa cards with crypto right now and buy gum, gas, or whatever you want. Monero is the creator and the buyers of crypto.com, now there new name.

 

[bmugford]

Whos investments do you advise?
Kinda feel sorry for them, you are 90% Likely to hit a 100+ x Return over the next x (1-3) years with cryptos, (if you diversify) yet you advise against them, just to not lose those 10% of the capital that should be reserved for such investments?

90% likely to make a 100+ return? Those are just numbers you pulled out of your ass.

Tell that to people who took a second mortgage to invest in bitcoin @ $19,000 or the countless other ICO's that are essentially worthless at this point.

Also, for something to really work as a currency in the real world it generally needs to have some stability, not crazy swings one way or the other in short periods of time.

Brad

 

[Kate]

Our currency has value because you are told it does. In reality, it’s valueless if you can just print new paper whenever deemed necessary.

Fiat currency is backed by government assets, and ultimately land. But also trillions of debt
When a crypto exchange goes bust, or gets hacked (inside job), there is no bailout.

When the fiat currencies collapse, who is going to accept bitcoin for food? lol. and what if no internet access? lol.

Seriously, go ask anyone... "the global economies collapse and the dollars are worthless. Will you accept bitcoin for groceries?"

I think you've framed it quite well. We are not there.

the problem with bitcoin is that less than 1% of all people own it.

That makes it prone to manipulation. Very unhealthy and nontransparent.

The way I see it, it's like a game of musical chairs where 99% of players are blind and exposed to sensory deprivation.

 

[.NJ]

Btw, crypto is very similar to domains in that success comes to those that understand how to pick winners

This^^^^

People need to understand what is really happening....

95% of all the crypto's out there are bull$hit fluff and short term money games (which is coming to and end).

Bitcoin is the "Netscape" of the crypto world.

It paved the way for the future evolution of the industry.

Do some "real" research. Some hardcore digging. Some actual due diligence. Spend more then 5 min on a stupid crypto chat room.

The winners are there.

The winners are bright as day.

You just have to believe, buy, and hold....

 

[topdom]

Without advertising bitcoin would be nothing. Now there is negative advertising. Maybe bitcoin needs to be printed on paper to survive.

 

[~ The 34 Year Buzz!!]

...
bit coin and all these other made up currencies will then have no value.

Why?

made up currencies?
What?
The national debt and the federal deficit are skyrocketing. ... WASHINGTON – The national debt is $21 trillion and counting. The federal deficit soared last year to $779 billion and is projected to approach $1 trillion in 2019.
https://www.google.com/search?q=us+federal+debt?&ie=utf-8&oe=utf-8&client=firefox-b-1

 

[maksimfa]

Why?

made up currencies?
What?
The national debt and the federal deficit are skyrocketing. ... WASHINGTON – The national debt is $21 trillion and counting. The federal deficit soared last year to $779 billion and is projected to approach $1 trillion in 2019.
https://www.google.com/search?q=us+federal+debt?&ie=utf-8&oe=utf-8&client=firefox-b-1

So tell me, would you rather own cold hard gold and guns? Or "virtual" assets like bitcoin and other currencies?

When the fiat currencies collapse, who is going to accept bitcoin for food? lol. and what if no internet access? lol.

the problem with bitcoin is that less than 1% of all people own it.

Beyond that, just like paper money, bitcoin was virtually created... value out of nothing.

So... is there a value for CRYPTO? HELL YES! the technology is there.

Is there value for Crypto Currencies? Not likely.

And this is my opinion as an investment advisor. =)

 

[TestCase]

There is no bailout when a nation's currency goes bust either. Ask Venezuelans. I know people who lived through currency collapses, and they see the value in bitcoin because they know that fiat currencies are backed by nothing but politicians' promises. We know what those are worth.

Forget about government assets and land coming to the rescue. Government cronies and those who are already wealthy will buy it all up at pennies on the dollar. Exactly none of that money will go to bail out people who lost their life savings because the currency collapsed.

I keep reading things, but I just don't get it.

Can you explain to me in very simple terms what exactly backs/supports bitcoin -- or any other cryptocurrency -- and will prevent it from collapsing as well if any of the world's major currency collapses? I mean, aside from just a random belief that it actually represents something and as such has value.

What makes a cryptocurrency immune from a bust, say like losing 83% of it's value? Example - What if I had my life savings of $19,783.06 in my bank account and then a year later it was worth only $3,377.47 (+/-). If that sort of drop occurred, that would be considered a bust, right?

What's going to prevent that type of devaluation from occurring with bitcoin or other crypto currency?

Again, when the world is crumbling around me, I'm going to be neck deep in ammo and toilet paper. Now THAT'S where the new wealth will created!

 

[Keith]

its a democratic government, just go out and vote next time, bet you didnt last time?

As the great George Carlin once said - the people that don’t vote are the only ones that can complain about the system. The people that voted, elected the people that created the mess.

 

[Alvaron]

I want to comment on the first post, didn't read most others, sorry...

There is a whole lot of transactions being done on the Bitcoin chain at the moment. The largest part is trading, true; but there are real world deals being done in BTC, some for larger amounts than you'd think.

What is however the case, is that the 19k all time high was speculator fueled and a lot of regular Joe's money got "stolen" by bigger players. They knew it was coming down again and that's why they sold at ATH and are now starting to refund their balances. The top 200 wallets of BTC are not spending BTC, they are buying, in the THOUSANDS. That's the smart money.

You can't argue that it's worthless at the same time all big stock exchanges are spending money on crypto desks. To state something like that is living outside of the financial reality of today.

What is, however, a fact is that BTC will not reach it's ATH again any time soon. I expect that a bottom be found and that we'll move up healthy and slowly from there. We'll beat ATH again, sure, but IMHO not in the first 12 months. (although a Van Eyck ETF could make it more a speculation tool and then it might skyrocket, but I'm sure the whales would cash in again)

This being said about Bitcoin, but not crypto as a whole.
Crypto (I mean the altcoins) is just a collection of 2000+ coins and tokens that are solving a problem that's (a) not there; (b) can be solved by Bitcoin itself.
Every altcoin (ok, some will survive ofcourse, but still) has little to no value over Bitcoin. If you compare the sollutions from a multi million dollar ICO coin to the work that has been done by volunteers in their spare time to improve on Bitcoin and build a Layer2 solution on top of it (Lightning Network, Smart Contracts, ... ), it's pretty clear that Bitcoin has the edge.

Litecoin, Dash and about 200+ others have tried to make "fast payments" possible. Some have worked 5+ years on this.... Besides added privacy, none have beaten the Lightning Network, and that's just in Beta right now....

So yea,
Bitcoin will continue, at least for the forseable future. Another may take over but BTC will then still be a "badge of honor" or collectors item.

In my viewpoint the ranking of crypto domains is:
1) Community Site
2) Layer2 solution/business
3) Bitcoin related
4) Altcoin related
5) Crypto general
6) fun names (I saw cryptoBF and cryptoGF in the crypto domains thread... That would be huge if you make a game around it and earn some ETH or NEO in the process (look up cryptokitties)).

Hope this makes some sense.
disclaimer: I'm a BTC maximalist and perma-bull

 

[DomainBoxio]

What do you guys think?
Are Crypto Domains still worth it?

Honestly, it's time to start looking to the future. I am currently focused on more timeless, everlasting domains, like "Drone" and "Pokemongo"...I have pokemongoblockchaindrones.com available now, which is targeted towards the fast-growing Decentralized Augmented Reality Drone Hobbyist niche, powered by the blockchain.

 

[55Domains]

well all money is basically illusion.. btu at least the dollars in your bank account won't go to zero or down by 50% any time soon.

You are in for a surprise soon-ish

 

[iowadawg]

Okay, take your bitcoin (oh wait, you can't) to your local store and try to buy a pack of gum.

Again, the cryptos are valued in freaking dollars, which you say are valueless...
Which makes the cryptos what?
VALUELESS!!!