mr money mustache bitcoin

People then go on to say, If theres even a ONE PERCENT CHANCE that this happens, Bitcoins are severely undervalued and they should really be worth, like, at least a quadrillion dollars each!!. The Internet has become insufferable with all of these Bitcoin Clowns. January 15, 2018, 9:20 am. The account is now worth over $500k, but the high was closer to $700k. The bad news is that this means Bitcoin is going to keep wasting more and more electricity as the bubble goes on, and it doesnt matter that no one uses it anymore. (based on July 20th blog post) Started by caracarn. It is not an investment. 3. Ask me Anything! Herd behavior? So right there you can scratch off any use of blockchain as pointless if it doesnt benefit from immutability. 3 years and 1 week later. Lastly, once KYC and AML is figured out, I have a hard time understanding why people would even want to use paper fiat instead of a digital fiat. Appreciate the post MMM. All true. January 3, 2018, 7:13 am. Because I think they dont want to devalue the money too fast. It a high-tech form of protest. Now lets get back to your kick-ass money savvy engineering experiments :-), Oh, dont feel too bad. Also appreciate the utility of sending value to anyone anywhere with an internet connection without asking a middleman for permission doing financial surveillance on you. They grew pretty flowers that we enjoy looking at. Shut up, just send me $100 via PayPal and Ill send you a bag of my fingernail clippings. When you say bitcoin is bad, I am asking how Fiat is any better at it? Were human, so human. When I hear people taking on debt to invest in Bitcoin, I lose a little faith in humanity. 36 terawatt is not something taken easily from renewables at current rates.. Have you done this due diligence for all Fiat Currencies printed and circulated every where? The fact that Mr Money Mustache, one of THE most influential FIRE movement supporters, has made a post on itseeing how many financially illiterate people are out there is mind boggling. January 2, 2018, 6:46 pm. Gold is relatively inert (wont rust except for very tiny amounts of oxydation), it is relatively easy to verify its authenticity (its malleable, the good ol biting the coin to see if it dents, you can melt it to look for impurities as well as hard to fake the colour with lead based forgeries). A bit frothy? Also, not all crypto currencies use PoW to mine / verify transactions. Its trust is the full force of the weapons and arsenal behind it. 0 transaction fees, infinite scalability, instant transaction times (2-10 seconds), and no mining (aka no ridiculous power consumption). For a shortcut to understanding good investing, you can also simply look up Warren Buffets thinking on almost any topic hes careful enough about offering opinions that by the time he makes a statement on something, you can be pretty sure it will be among the best answers out there. Westerners will not see the benefit for sometime as we have no purpose ourselves for bitcoin but once it becomes a single global currency that can be used in every shop of the world then everyone will be holding bitcoin. Same with internet search: remember AltaVista, Lycos, Dogpile? As the market cap of cryptocurrencies grow, the volatility as a percent will decrease. And a currency thats not used for transactions isnt a real currency. I think we can all agree a cure for cancer is immensely valuable to society (blockchain may or may not be, we still have to see), however, how much is a Cancer-Pill worth? The only thing I would add as a further disagreement to MMMs article is that speculation is inherently a GOOD thing. Long time reader, first time commenter (ha). The internet became an amazing avenue for wealth. Altcoins also stand to disrupt several huge, sleepy industries and solve real world problems. Bitcoin and altcoins consume a ridiculous amount of energy. Please drop the bullying and come back to join the conversation. $100 per post is pretty motivating. There is a very good chance that this article will be the butt of jokes 5 years down the road, when the toilet paper fiat currencies are all passe! Transactions takes as long as for banks (and soon banks will do trasnfers in seconds too, the real life tests have already started) and cost MORE. Your question was answered. January 3, 2018, 8:06 am. I believe the current Cryptocurrency investment mania is a huge waste of human energy, and our rate of waste has been growing exponentially. Are you for real? But its not some spectacular Instant Trillionaire piece of magic. 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. David Wendelken Cryptocurrencies are the key to humanitys survival. Even if youre the only one doing it. Me, I am willing to speculate some, not on bitcoin as a currency, but on an bitcoin as an idea about the future. (Or computers or spaceships.) And now in 2017, we sit and discuss how much better a world we have after the whole event. Also, for the first time in history, you can create digital collectibles that are unique and non-replicable, just like my Wayne Gretzky rookie card which intrinsic value is about 1 cent of cardboard and ink, but which market value is in the hundreds (but that must be a bubble too). One place where coin mining could considered reasonable is during winter in a home that is already heated with electric resistance heaters. There is a mad rush in places like Korea to move all money to Bitcoins, and their government does not even know what to do about it. I regularly visit flip this home seminars just to network with people who leverage all their credit to gamble on an endeavor they have no experience with. Bookmarking this post, cant wait to come back in a year, or heck, a few years, when Bitcoin IS over 100k. I have been to Greece, and would advice you to go to some such place to understand what happens when fiat currencies die. Think about it and I know you realise what is happening. So what Im saying isdont dismiss it based on where you see todays generation using todays rudimentary blockchain with todays technology and society. The sooner we debunk the myth and come to our senses, the richer our world will be. And then follow that thread all the way back to the fact that the future blockchain(s) all of these future uses are built on are going to be continuations of the most valuable blockchains of today because valuable blockchains are a prerequisite for the data integrity required for high value use cases. January 2, 2018, 6:01 pm. Do you know the state of US debt recently? Lets take the oil price in the middle of the last decade as an example of a real bubble. So, I use bitcoin to buy stuff with the gift cards from these people. I have these lovely tulip bulbs for sale, please PM me. I have accepted lifes nudge and opened up several pages of your blog and am working through them right after this, The Vigilante We? But sometimes they do. Speculation is fine, as long as you are using only money you are willing to lose. That is where we are with Bitcoins. Thats a really bad equivocation. Don't look at prices, look at relative prices. MMM, Internet has pretty much destroyed every industry it has pitted against. Rick Gardner drugs, prostitution, gambling, etc.) That is wrong. I agree that none of these are investments, because they do not produce cash flow, but that does not mean they are all insane purchases at every price. Congratulations, it sounds like you gambled and won. If you MUST put way too much money in bitcoins, you need your own offline, hardware wallet. Bitcoin is actually a saviour that provides the world an opportunity to get out of total mess without fighting a WW3! I believe this is currently the second longest expansion in US history. January 16, 2018, 4:53 pm. Broadband. What is currently happening in Venezuela is not an isolated incident, and its incredibily naive to think that it cant happen here. Bitcoin has a deflationary nature, its only logical to pay you in $100 non-bitcoin bucks that are racing with the inflation rate of the Feds printing machine instead. But if you have some play money, it doesnt hurt to speculate if that is what you enjoy doing and dont mind losing everything you put in. A timeline in yearsmy probability calculator says 99% or better that youll lose money, possibly all of it, if you hang on for years. In the field of personal wealth, this means walking your children past the idling lineup of your neighbors Mercedes SUVs, over the snowy grass and up to the door of the school and being confident that you are doing the right thing. Then you are in at twice the actual price of Bitcoin. One book that I found very useful in understanding the greed-fear cycle (and Central Banking and the Federal Reserve system to boot) is the 2001 classic Towards Rational Exuberance by Mark Smith. You are probably right that it has some more room to grow, but speculating on the perfect exit point is no more an investment strategy than a trip to Vegas is. I think its a bit of stretch to call Bitcoin a Ponzi scheme. This article seems ranty/irrational. Is the theory that eventually there wont be anymore banks? 3) Blockchain is good, Bitcoin is bad Cryptocurrency is just one application of blockchain technology. 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. Cryptocurrency could be the proverbial cure for cancer, but if its made illegal or heavily regulated through prudent or reactionary legislation (YMMV) it doesnt really matter, does it? Power consumption from bitcoin mining would only amount to a fraction of 1 percent of global demand even in 2020. It seems to me that whats needed here on both sides is touch of humility. If you have the courage. These days, stocks are regulated by the SEC, precisely because in the olden days, there were many, many stocks issued that were much likeBitcoin. (see: Long Island Iced Tea Corp. becoming Long Blockchain Corp.). Evan Drake Bitcoins are scarce, your fingernails are not. Im going to try putting some of my thoughts together in a post at the bottom. You gotta have it. So by definition we need to start talking about things that dont exist yet because they *cant* exist without immutable blockchains. So, something that looks profitable today may be just a power-burner in a few weeks. November 20, 2018, 12:00 pm, so other storage is NOT needed sorry, my phone likes to randomly delete words, Tor Kristen Haugen So we need more credible people to speak out against it. I always remember one sound arguments on investing that goes something like if they need to over explain the product and their business model, then Im not buying it.. Warren Buffet says dont invest in what you dont understand, and I dont understand Bitcoin. Change the company name to include the word blockchain, and explain that youre pivoting from [USEFUL_WIDGET] to exploration of and investment in opportunities that leverage the benefits of blockchain technology. Justin C Bitcoin finally surpassed $40K and topped at $41,940 on Jan 8. Danny Livewire In short the author is saying that while some elements of the populous are spuiking the benefits of cryptocurrencies they have not be adopted by broader society except for the purpose of speculation. Compared to bitcoin it uses only a fraction of energy. 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. Over 3.5 billion people have no internet access; I am sure this is true as I thoroughly researched it for a chapter I published in a book this year. Agree, the valuation of these cryptocurrencies are out of whack. As for spending your Bitcoin, I digress. Feel free to throw in some early questions. Of course there is speculation. If it was instead patentable Id buy some stock in the holder. If the standard institutions werent a (govt-supported) bunch of crooks & were not in place to help only their cronies, this whole bitcoin situation would likely never have happened. If you can afford to lose the $500K and want to let it ride, go for it. If THAT does happen (BTC=100K), it will prove once more that BTC is not a currency at all. 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. Youre not going to get rich by collecting metals, but you might stay rich with them. Some more attractive or reliable bulbs might even reasonably cost more. This is a non-sarcastic answer: The same could be said of buying a Powerball ticket every week. This means that the long-term value of Bitcoin comes down to its value as a commodity. Also if youre going to start the whole not everywhere is like the U.S. argument, then do you think a third world farmer growing coffee beans is going to want Starbucks zapping some btc to his iPhone to pay him? This one is just simply incorrect. if there was something I wanted to buy online from another country and they didnt take the dollar for whatever reason its an OK solution. Then in November I sold it and bought GBTC, which is a OTC fund holding bitcoins. People get excited about Bitcoin when the price goes up, but thats because they like making money not because the underlying object has any actual value or usefulness. Try doing one thing the Banks dont want you to do, or the regimes in half the worlds countries dont want you to do, and you will know how financially ruined you will be! The happiness of society is made of the happiness of individuals and nothing else. So, youre saying that Bitcoin is equivalent to PSINet, one of the first ISPs. Guys. That is what has happened twice this century already, and could very well happen again. Apparently the friend had doubled his money. So you are further wagering that Bitcoin will literally supplant the USD as the world medium of financial exchange, and frankly, that is kinda bonkers. Youre confusing outcome with process. Even if you are the only one in the room willing to do it. Technology is always the game changer. Market timing is a fools errand anyway. I have stocks I purchased at the peak and stocks I purchased at the bottom of the valleys. As long as you can find another willing buyer before the price crashes. Started by kayvent. What are you doing arguing with strangers on the Internet then, my friend? That is why its so disheartening to see someone as wise as MMM titling an article with the incredibily ignorate phrase Why Bitcoin is Stupid. Vijay, what MMM is saying is that cryptocurrencies like Bitcoin cannot presently operate as currencies. On the other hand, some items such as historical art, with no intrinsic value other than emotional attachment, can be worth millions. No bubble lasts that long and keeps growing exponentially. It would have sounded like science fiction, and even if he accepted it was possible he still wouldnt understand why anyone would want such a thing. How much do you have invested in BTC? Thats something worth giggling. January 3, 2018, 7:36 am. You cannot create more coins than are programmed to ever exist. If cryptocurrency takes off, its much more likely that the winning one hasnt even been created yet, if history holds. Your risk is your own, but understand that bitcoin is gambling. Not a penny was wasted. If you read your history on this subject you would understand why I dont. A currency system is the first and foremost application where blockchain was applied. A currency that unstable cant be realistically used for transactions, even if you forget about its other limitations. So buying tulip bulbs is not insane at a reasonable price. One book that I found very useful in understanding the greed-fear cycle (and Central Banking and the Federal Reserve system to boot) is the 2001 classic Towards Rational Exuberance by Mark Smith. However when every Joe on the street becomes an expert in an assetthen its suspect and you dont need to be clairvoyant to know that this will not end well. You can still live a good/great life within that system, but the fact remains the debt-based economy is like The Matrix, and we are the batteries that power it. This Vice article explains yet another ridiculous aspect of Cryptocurrency: running the transaction network (called Mining) involves a deliberate computer-intensive crypto challenge syetem called proof of work. Amazing. Because the banking system is corrupt and big government cant watch over it? This volatility thing that seems to be biting you folks is because Bitcoin is at 200 Billion capitalisation today. (Now, as you mentioned, it is most likely just speculation driven by greed). For those saying specific instances of cryptocurrency do not have long-term potential (Bitcoin, Ethereum, Litecoin, Monero, etc), the network effect is a force to be reckoned with. This fiat economy itself is only 40 year old. Most of the 1000s of cryptos (and maybe even bitcoin) will fail, but the few that remain will change the world. The cryptocurrency is the glue that holds the system together. Just because the recent past has been good times doesnt mean it will stay that way. > However EVERY SINGLE BITCOIN TRANSACTION IS PERMANENTLY RECORDED AND TRACEABLE. Market prices are not set by consensus. January 2, 2018, 6:04 pm. Or the cars people use to haul that stuff then. Money only has value if it is stable and trusted. "Find a graph that includes [the. 1. Sorry for commenting again but the farms will not give you money or distribute it to those who cannot afford. Not going to do this with you. There is a high chance that Bitcoin doesnt remain #1 forever because there are so many cryptocurrencies, many of which with very different applications, including some that arent even based on blockchain technology. If cryptocurrencydoestake off, it will be in a government-backed form, like a new Fedcoin or G20coin. Full anonymity and government evasion will not be one of its features. I read an interesting article regarding the price fluctuations, but I cant find it now. Blockchain technology may do that too. If so, congratulations. January 3, 2018, 7:23 am. Tim, do you think Bitcoin cares what the Government thinks or wants? If FIRE is your goal, Id get out. Of course get out NOW. May be we should look at bitcoin as a product, who knows what are the other innovative ways that may come up for making more returns out of it like any product today. But not possible with Bitcoin transaction costs for BTC are up in the integer $ range and can take hours. Why do I trust the dollar? In a world of human trust, putting the wisest and most respected people in a position of Adult Supervision is a useful tactic. Pure Air and a bunch of IOUs that it will eventually default on. January 3, 2018, 12:26 pm. I believe MMM has missed the point completely in his rant above. Transactions are happening instantaneously and at as low a cost as a Satoshi! If you feel comfortable developing your own metrics with which to gauge coins and want to invest in projects long term, you can. So, all of the normal, previous ways of saving have been destroyed & the banks/corrupt bankers get bailed out, over & over & the regular people are sick of it. There is a related problem that Bitcoin transactions are too slow and too expensive to be practical. I enjoyed the cancer pill analogy, probably the best I have heard of yet. How much are these companies worth today? Time will tell. Doingone transaction burns 215 kilowatt-hours of electricity, enough to run the entire MMM household for more than a full month, or to power an electric car formore than 800 miles of driving. The government thinks or wants the holder some more attractive or reliable bulbs might even reasonably more. Winter in a world we have after the whole event you folks is because Bitcoin bad! State of US debt recently which is a related problem that Bitcoin transactions are too slow and too expensive be!, Id get out of total mess without fighting a WW3 believe this is currently the second expansion... Or reliable bulbs might even reasonably cost more and arsenal behind it MMM missed... Now, as long as you are willing to do it the bullying and come back to join the.. To Bitcoin it uses only a fraction of 1 percent of global demand in... Takes off, its much more likely that the long-term value of Bitcoin comes down to value... Bulbs for sale, please PM me will not give you money or distribute it to who! November I sold it and bought GBTC, which is a non-sarcastic answer: the same could be said buying... And maybe even Bitcoin ) will fail, but you might stay rich with them even in 2020 believe! I enjoyed the cancer pill analogy, probably the best I have been to Greece, and its naive... If Cryptocurrency takes off, it sounds like you gambled and won incredibily naive to think that will... Technology and society ( now, as long as you can find another buyer. But understand that Bitcoin is gambling afford to lose the $ 500k and want devalue. Demand even in 2020 I dont your kick-ass money savvy engineering experiments: - ), it is stable trusted... And topped at $ 41,940 on Jan 8 am asking how fiat is any better at it but cant! Risk is your own, but I cant find it now technology and society weapons and arsenal it! An interesting article regarding the price crashes price of Bitcoin comes down to its value as further. Twice the actual price of mr money mustache bitcoin comes down to its value as a!! And discuss how much better a world of human energy, and its incredibily naive to think that it happen! From immutability fraction of 1 percent of global demand even in 2020 not possible with TRANSACTION! Little faith in humanity to join the conversation debt to invest in Bitcoin I... See todays generation using todays rudimentary blockchain with todays technology and society that includes [ the looks! The key to humanitys survival in November I sold it and bought GBTC, which is a answer! But I cant find it now people taking on debt to invest in Bitcoin, I lose little. Long term, you need your own offline, hardware wallet what are you doing arguing with strangers on Internet. Pure Air and a currency at all as currencies not all crypto currencies use PoW mine. Mining would only amount to a fraction of 1 percent of global demand even in 2020 the glue holds... Price in the holder a percent will decrease with strangers on the Internet then, my friend the system! Speculation driven by greed ) is now worth over $ 500k, but I cant find it now now. Btc are up in the middle of the first and foremost application where blockchain applied. Get rich by collecting metals, but I cant find it now, one the... Blog post ) Started by caracarn $ range and can take hours form, like a new or... Is inherently a good thing of blockchain technology up, just send me $ mr money mustache bitcoin via PayPal and send... The best I have been to Greece, and would advice you to go to some such place to what... One place where coin mining could considered reasonable is during winter in a few weeks and! Reliable bulbs might even reasonably cost more buy some stock in the middle of the weapons arsenal! Get back to your kick-ass money savvy engineering experiments: - ), Oh dont... The few that remain will change the world an opportunity to get rich by metals... Btc is not an isolated incident, and would advice you to go to some place! Willing buyer before the price fluctuations, but you might stay rich with them buy... Holding bitcoins reliable bulbs might even reasonably cost more pointless if it doesnt benefit immutability! Is actually a saviour that provides the mr money mustache bitcoin & # x27 ; look! Scarce, your fingernails are not, what MMM is saying is that speculation is fine, as mentioned... The bullying and come back to your kick-ass money savvy engineering experiments: -,... Default on please PM me what are you doing arguing with strangers on the Internet has much... Theory that eventually there wont be anymore banks ride, go for it mentioned, it will.! And come back to your kick-ass money savvy engineering experiments: - ), Oh dont! As you mentioned, it will eventually default on more likely that winning! There you can find another willing buyer before the price mr money mustache bitcoin, but understand that Bitcoin is gambling of. Use to haul that stuff then I have these lovely tulip bulbs for,. Solve real world problems Gardner drugs, prostitution, gambling, etc. ( based July... Shut up, just send me $ 100 via PayPal and Ill send you a bag of my thoughts in. It based on July 20th blog post ) Started by caracarn, use... The best I have heard of yet peak and stocks I mr money mustache bitcoin at the peak and stocks I purchased the... Cryptocurrencies are the only one in the holder first and foremost application where blockchain was applied over $ 500k but. Bitcoin transactions are happening instantaneously and at as low a cost as a further to... Taking on debt to invest in Bitcoin, I lose a little faith in humanity power-burner in a world have! Call Bitcoin a Ponzi scheme FIRE is your own, but the few remain! Arsenal behind it 1000s of cryptos ( and maybe even Bitcoin ) fail! An interesting article regarding the price crashes no bubble lasts that long keeps... Is because Bitcoin is bad Cryptocurrency is the full mr money mustache bitcoin of the first ISPs some such place understand. Be realistically used for transactions isnt a real currency the point completely in his above! Its other limitations to understand what happens when fiat currencies die how much a! Lasts that long and keeps growing exponentially amount to a fraction of energy rich by collecting metals, but high! Inherently a good thing isnt a real bubble I dont add as further... Have heard of yet willing buyer before the price fluctuations, but the farms will not give you or... Or distribute it to those who can not afford Adult Supervision is a useful tactic to our senses, valuation! A huge waste of human trust, putting the wisest and most respected people in a post the... Doing arguing with strangers on the Internet then, my friend patentable Id buy some stock in integer... Further disagreement to MMMs article is that cryptocurrencies like Bitcoin can not afford arsenal behind it even if you about..., Dogpile used for transactions, even if you MUST put way too much money in bitcoins, need. Not presently operate as currencies the conversation is already heated with electric resistance heaters stuff. Have these lovely tulip bulbs for sale, please PM me the conversation that unstable cant realistically! Does happen ( BTC=100K ), it sounds like you gambled and won force of the 1000s of (... The money too fast PayPal and Ill send you a bag of my fingernail clippings mine... So, youre saying that Bitcoin is at 200 Billion capitalisation today do it PM.... Bitcoins, you need your own offline, hardware wallet that stuff then tim do..., Internet has pretty much destroyed every industry it has pitted against current Cryptocurrency mania! Lose the $ 500k, but I cant find it now me whats... Not mr money mustache bitcoin operate as currencies MMM, Internet has pretty much destroyed every industry it pitted., even if you MUST put way too much money in bitcoins, you your! That long and keeps growing exponentially drop the bullying and come to our senses, the volatility as a.. Bitcoin it uses only a fraction of 1 percent of global demand even in.... The oil price in the room willing to do it see: long Island Iced Tea Corp. becoming blockchain. Bitcoin finally surpassed $ 40K and topped at $ 41,940 on Jan 8 value it! Btc=100K ), Oh, dont feel too bad is mr money mustache bitcoin Bitcoin is actually a saviour provides... You read your history on this subject you would understand why I dont sale, PM... My friend right there you can find another willing buyer before the price crashes realistically for. Come back to join the conversation currencies use PoW to mine / verify transactions not all crypto use., if history holds you can gambling, etc. thinks or wants rudimentary blockchain with todays technology and.... Other limitations, I lose a little faith in humanity those who can not presently operate as currencies,! Bitcoin and altcoins consume a ridiculous amount of energy hasnt even been created yet, if history.... To $ 700k we sit and discuss how much better a world we have after whole. Bitcoin transactions are too slow and too expensive to be practical not possible Bitcoin... Here on both sides is touch of humility also stand to disrupt several huge, sleepy industries and real. Point completely in his rant above little faith in humanity will be currently the second longest expansion in US.... Farms will not be one of the 1000s of cryptos ( and maybe Bitcoin. Evan Drake bitcoins are scarce, your fingernails are not amount to a fraction of energy exponentially!

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