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?

 

[55Domains]

Cryptos being worth trillions is an inevitability. Fight it all you want, with thy fkd up USD thats in for a good old fashioned beating anyways.

 

[55Domains]

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

Takes me 3-5 days to load card, most cryptos i can send from a to b within seconds-minutes, tech is available for secure, 5 second transaction on the best chains currently.

5 Seconds and 0.001 cent fee vs 3-5 business days and $25 fee.
go figure.

 

[TestCase]

No clue what you’re attempting to say.

Well, if you were referencing the FIFY, that means "Fixed It For You".

But if you were referencing the, "as well as a sufficient number of other people -- BELIEVE"...

I was just pointing out that for a currency to represent any value at all, the first thing that has to happen is that a sufficient number of people must believe that it will be accepted by others as a common, stable (relatively), quantifiable and readily usable unit of exchange for goods or services. (A social construct???)

It doesn't matter what "value" is stamped on the currency or what "they" say it's worth if a sufficient number of others don't believe in it as a common and acceptable unit of exchange .

 

[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. =)

 

[55Domains]

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. =)

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?

 

[maksimfa]

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?

LOL. Did you sing the same tune when Bitcoin was over $10k?

Believe me, I trade currencies and others... but don't mistake investing for trading.

There is virtually zero chance any of the major coins will be around in 10 to 20 years at their current values.
There is almost 100% certainty that the blockchain technology however will be. It is currently being implemented in financial services and elsewhere.

And again, why is Bitcoin "worth" more than Litecoin, etherium and others? Isn't ETH supposed to be more secure and better overall?

The reason why, more fools know of Bitcoin and are willing to throw money at it. When that dies out, it will be deader than MySpace and AOL.

Again, don't confuse trading and investing, and the value less coins versus the very valuable technology behind it.

I invest in blockchain, but not stupid enough to invest in coins that will buy me nothing.

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

Bitcoin has value as it pertains against USD and other currencies... but as a means of trade, precious metals, physical metals like gold and silver will be it.

If you saw John Wick... they trade gold coins for payment... not bitcoin. lol.

 

[urlurl]

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?

nope, not likely... and not worth the risk

were you pumping the idea of crypto's when they were $10,000 btc, $19,000 btc, LMFAO

 

[dncafe]

close to becoming worthless

$3,400 compared to the original price of 8 cents doesn't sound close to worthless to me

 

[urlurl]

it is to the ones who were conned into buying when it was $19,000

 

[Recons.Com]

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.




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

You should pay attention to what he was actually saying. He talks specifically about bitcoin.

Basically, if recording transactions costs more than the worth of what they are getting for it, then it will come to halt before long.

Bitcoin has an inherent design flaw that might kill it, if that situation arises and persists. By design, bitcoin mining/processing costs are set to rise.

 

[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

 

[urlurl]

yup, 100% agree.

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

 

[Rinkuji]

Bitcoin or Any Cryptocurrency is good for short term trading and bad for investment purpose. It is not Fundamentally strong like Stock / Commodity / Forex markets.

 

[deez007]

Bitcoin will simply move from being a currency to a store of value, a high valuable one. Easily transportable and invisible. Gold is also a great store of value but try taking a few gold bars out the country with you...

 

[BaileyUK]

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

Indeed, Is this the same Joker who assured us bitcoin would be worth US$100,000 by the end of 2018 despite it's earlier in the year plunge. Can't remember the exact post but yep it was 'Virtually ' guaranteed. The drop just a supposedly temporary profit taking before all the serious players dived-in at the more appealing $8-10,000 price

I suppose once you've bought in to all that 2017's hype, you haven't got much left but your own stubborn delusional beliefs

 

[~ The 34 Year Buzz!!]

You should pay attention to what he was actually saying. He talks specifically about bitcoin.

Basically, if recording transactions costs more than the worth of what they are getting for it, then it will come to halt before long.

Bitcoin has an inherent design flaw that might kill it, if that situation arises and persists. By design, bitcoin mining/processing costs are set to rise.

By design, bitcoin mining/processing costs are set to rise...
And the mining costs can fall (sometimes dramatically) as people lose interest and stop mining.

"He talks specifically about bitcoin..."
Thanks for your above average attention to detail, but:
Yes, I expanded the topic (just a bit) to help show what a complete idiot he appears to be.
^^^^
To all at NP:
Feel free to post the professors quotes at bitcointalk.org, and allow those people to help fill in the blanks.


FYI: Being able to pay people with a fee of under a penny (with some established altcoiins) has actual, real value.

 

[~ The 34 Year Buzz!!]

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

It is an exciting world. Can you advise your clients on how to use ""virtual assets like bitcoin and other currencies", to create pallets of gold bars?

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

Perhaps you have never experienced the joy of witnessing geniuses discuss the possibility of bouncing the blockchain data off of existing satellites even if the internet is 100% down?

 

[55Domains]

LOL. Did you sing the same tune when Bitcoin was over $10k?

Believe me, I trade currencies and others... but don't mistake investing for trading.

There is virtually zero chance any of the major coins will be around in 10 to 20 years at their current values.
There is almost 100% certainty that the blockchain technology however will be. It is currently being implemented in financial services and elsewhere.

And again, why is Bitcoin "worth" more than Litecoin, etherium and others? Isn't ETH supposed to be more secure and better overall?

The reason why, more fools know of Bitcoin and are willing to throw money at it. When that dies out, it will be deader than MySpace and AOL.

Again, don't confuse trading and investing, and the value less coins versus the very valuable technology behind it.

I invest in blockchain, but not stupid enough to invest in coins that will buy me nothing.

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

Bitcoin has value as it pertains against USD and other currencies... but as a means of trade, precious metals, physical metals like gold and silver will be it.

If you saw John Wick... they trade gold coins for payment... not bitcoin. lol.

Cryptos, are not specifically "Bitcoin", where and how that goes is anyones guess

10-20 years? No, max 5-7, if that. However, its not dead, death looks different, and if it isnt dead its in for another crazy pump, (and i technically am speaking of some of the alts and not really bitcoin), why not take advantage of such opportunity then, if its a near certainty?

 

[~ The 34 Year Buzz!!]

"Whatever you do in life, surround yourself with smart people who'll argue with you." ~John Wooden
~ https://www.brainyquote.com/quotes/john_wooden_446997?src=t_smart_people

 

[55Domains]

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

Now i just hope they lost everything cause they shouldnt have played in the first place. Is what i tell them, you go buy on the ATH so then clearly you are a idiot, since the dawn of trading thats not where you were ever supposed to buy in, do it anyways cause of fomo, then you live with the consequences.

That being said, selling now would be just as stupid, chances of it going back above $19k vs chances of it going to 0, hard one, but my bets are on the first.
Again, im talking cryptos overall not the "actual" bitcoin.

 

[Furquan]

Is the professor just referring "Bitcoin" ?then yes bitcoin going to see market correction & the other crypto.

You people should start thinking about why "BtC" going down. Their dev refused to scale it up. See other coins like Bitcoin Cash which scale on chain & getting accepted by every global merchant as payment.

Crypto has a brighter future but lets me tell you without btc.

 

[~ The 34 Year Buzz!!]

Is the professor just referring "Bitcoin" ?then yes bitcoin going to see market correction & the other crypto.

You people should start thinking about why "BtC" going down. Their dev refused to scale it up. See other coins like Bitcoin Cash which scale on chain & getting accepted by every global merchant as payment.

Crypto has a brighter future but lets me tell you without btc.

Introducing the Bitcoin Civil War into this community?
Oh my... Time to gets some popcorn?

 

[atinc]

HAH! Take away that Prof. out of his name. Finance professor yet knows zero thing about fintech.
Yes, folks sell your crypto before it becomes worthless.
There will always people buying the bottom and there will always people buying the top. Who sold on the top are buying bottoms while those who came in at 20K they are probably selling right now.

Finance professor my ass

 

[Furquan]

 

[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.