Shiller really just rediscovered it. Maybe not $500,000 an ounce or a bulb, but at some other far lower price, they can be an entirely reasonable purchase. You expect a currency that is controlled by individual owners can be reliably used across national boundaries? So, they sell it at a discount instead of losing revenue. Its closest to an MLM for me. Mr. Money Mustache (Pete Adeney in real life) is a Colorado family man who retired 11 years ago at age 30 after an unexceptional 10-year engineering career, and now writes occasionally about. It has reached the point that a big percentage of stories in the financial news and questions in Mr. Money Mustaches email inbox are about whether or not we should all invest in BitCoin. I am not a millionaire either or have any heavy investments in any of this and I am not certainly looking to grow my investments by commenting on a blog, of all places! All they can do is to ban and stop the exchanges. Sorry, PoF, Im staying away from your Bitcoins until I see a Tweet about the ones filled with chocolate. This is exactly what I was thinking. As for USD working has many reasons, required to participate in the largest economy in the world, the military power behind said economy, etc. People fall in love with works of art. 1. Im 100% with you when you say investing in bitcoin (and other cryptocurrencies) isnt smart. Here's the one I like: 25x the annual amount you spend/4% of your assets. Don't look at prices, look at relative prices. Started by kayvent. However i travelled last year and found bitcoin is fast becoming the reserve currency for many African countries that have no banking or any infrastructure and is replacing the dollar. January 2, 2018, 5:52 pm. So I also read a lot about investment bubbles and fundamentals and how to tell those apart. The stock market over the long run will ALWAYS grow as long as the population and technology and our output as humans continues to grow. They are very valuable and the price is sure to rocket! January 2, 2018, 6:30 pm. Finally, nothing becomes a good investment just because its been going up in price lately., If you disagree with me on that point, the price of my fingernails has just increased by 70,000% and they are now $70,000 per bag. Look at Cardano for example, they are building blockchain with built in treasury and KYC/AML endpoints. Every currency has something behind it. I am not trying to promote it for this purpose, but it is not an invalid choice. This instability just further proves that it would make a terrible currency and a recent study reveals that about 95% of even the trading volume is fraudulent. Episode 496: Why Bitcoin is Stupid - Part 1 by Mr. Money Mustache (Bitcoin Crypto & Financial Independence). Definitely not a speculative bubble. It remains to be seen. Holding gold is not an investment in this case, it is a hedge. LennStar 1) Adoption curve and network effect, 2) people buying & holding (hodling), 3) people using it to buy stuff or services. Got it. The web. Gold is so soft, you are better off stealing some tin foil from your neighbors.. and burying the potatoes under the fire! As has the MMM investing sub-furum. It can be laundered. I suspect it will have uses beyond public currency. > However EVERY SINGLE BITCOIN TRANSACTION IS PERMANENTLY RECORDED AND TRACEABLE. I have seen several bubbles grow and then burst, and one thing you learn is that an actual bubble rises like crazy and then totally pops. Bigger bulb, vs smaller, vs healthy, vs rotted. This is no different from rich wall street people and government controlling fiat currency. I could definitely sell these for more later. If you're like most Americans, you're a few . Why? Therefor, John will go on believing strangers on YouTube over me so I will be there to pick up the pieces when the house of cards crumbles. Thank you! Holy cow, its wasting that much energy Vijay? Hes helped thousands of people improve their lives. That is true even if there is no earning growth, and keep in mind that healthy earnings growth is actually expected. Ive been wondering this too. Read your history, it happens occasionally even in the great USA (a few times actually). As such, its an awful means of trade. Compared to bitcoin it uses only a fraction of energy. So, youre saying that Bitcoin is equivalent to PSINet, one of the first ISPs. All that the US has done since 2008, is hit the ball further and further down the road while at the same time blowing it more and more with air (read Quantitative Easing). Why not one of the other 1500 cryptocurrencies? I totally agree with you on bitcoin. Is the logical conclusion to short a mania or stay on the sidelines? Just one, just $2, and its (hopefully) only a sliver of your net worth. (Serious question. January 3, 2018, 7:20 am. Do you really think you own your Fiat paper? Mr. Money Mustache's argument easily boils down to the soundbyte that "bitcoin's price is fundamentally unpredictable, which makes it a terrible investment decision.". Darn things didnt even pace with inflation. Here's my direct negative experience with Pete, Mr. Money Mustache that may give insight into the MMM divorce. Hell isnt that why we are here in the first place? The act of speculating on an asset is what drives it to its proper price; they are critical players in the process of price discovery. Cut him some slack especially as he makes SUCH GOOD POINTS! People will release new ones all the time and people invest in them, not because they will ever be useful but because they expect the price to skyrocket. Wow, you really have no idea how hydroelectric power works. So I did learn a bit about locking and unlocking information, hacking, and ensuring that independent brains (whether they are two adjacent CPUs on a circuit board or two companies negotiating across the Pacific) can trust each other and coordinate their actions in lockstep. But its likely just down the toilet. People who have been trading 100s to buy illegal goods must be making out. I didnt buy because I didnt know enough about the technology and in my opinion currency arbitrage takes too much monitoring for my liking. The short answer is they can do nothing about it! An investment then would not be considered wasteful now. but fail to recognize that the USD also has no intrinsic value. Mr. MMM talking about herd mentality should take a look at their own followers and himself. Yeah, IF YOU SHOUT LIKE THIS IT MAKES YOUR POINT COMPLETELY VALID. As a result, changes in perceived value result in big price swings. While I dont consider Bitcoin an investment and I wouldnt advise anyone to pour their life-savings into it right now, I do encourage anyone reading this to buy a small amount and start using it to make everyday purchases. It is not an investment. Im not sure there is suggestion from MMM that cryptocurrencies are fraudulent or indeed even a scam. Because hydro acts as a massive built-in storage in both the short term (ms, seconds) and long term ( hours, days, Consensus over its value. This has happened with EVERY speculative event throughout recent history. Think that would fly at the grocery store? The tulip mania was a delusion. As we know from MMM teachings, safety and security are lies. My gosh, where do you these people come from? An Interview with Matt Cutts: Can the Government grow a Money Mustache? Thanks, MMM! Its not going to consume ALL the worlds energy? The problem with speculation is that the few that get in early certainly do make hordes of money at the expense of hordes of people that get in when speculative mania is at its peakinevitably to crash at some point. Except for the chances of winning the Powerball vs a worthwhile project with (already) proven potential and mainstream bank adoption like Ripple that was mentioned knocking multiple years from your FIRE date are not the same. December 10, 2018, 5:45 pm, Dang! January 2, 2018, 6:47 pm. The rise in bitcoin represents people waking up to one delusion (false paper valuations) and unfortunately accepting another delusionthat digits are more valuable and trustworthy than paper. People went off on many rants back when a single tulip bulb could have the same value as a ocean going ship, just as back then we had many people who couldnt stop talking about how great tulip bulbs are and why we should all be buying them. Speculation is fine, as long as you are using only money you are willing to lose. One of my coworkers at MMM-HQ works for nVidia, and part of his job is hunting down mining thieves who comandeer virtual servers (cloud computing) to mine coins on their behalf. 3. But yes, you should think about getting out, since you have enough now. So, we usually get $100 to $200 worth of stuff all at once. Is Bitcoin eventually going to replace the physical green back dollars and coins in our pockets? No doubt it will crash but I think it still has room to go. We will have to see if that new blockchain style will win out. Soon, they will be on the brink of bankruptcy and you will be able to purchase all of their stuff at a discount. I dont invest in Bitcoin, but Ive had this sob story in the back of my mind about how I missed out when I decided sometime pre-2010 to NOT mine Bitcoin. Thank you Jane, I have been waiting for someone to point this out! LOL. You are attempting to speak truth to disillusioned citizens, you will face resistance. It doesnt come right back a couple of years later and soar again to a new price 10 times greater than the previous bubbles high, which is what bitcoin has done after each one of its three or four previous bubbles burst. remittances, credit lending for undocumented people. LennStar Lady Dividend 3) Blockchain is good, Bitcoin is bad Cryptocurrency is just one application of blockchain technology. Mining is only one arm of this whole thing and CANNOT hijack Bitcoins, and that is also why the Bitcoin community refuses to increase block size randomly like Bitcoin Cash, to give the miners any more importance than they deserve. I think your point about time wasted is very accurate. In a sense one could swap bitcoin to USD and the article still stands. If youre in a position to do so, go for it. Even if Mining gets centralised, Bitcoins future cannot be dictated to by them! It a high-tech form of protest. Mustachianism the mental training that gets you to very early financial freedom requires you to evaluate inefficiencies in our culture and call bullshit upon them. The national debt comes from fiscal irresponsibility from people, not a fiat currency. Cryptos may be the money of the future, but there is nothing sane about its rise this past year. Totally agree about cryptos- but not sure gold should be lumped in with them. You know things arent a good investment when there are Bitcoin ATMs at bars. I remain open to more information on the uses of Blockchain, but Ive never seen a valid fundamental reason for betting on future increases in the prices of these things. Even as these banks show SKY-HIGH PROFITS, they mostly evade their share of tax via loopholes. Probably because it was the first and still the largest blockchain based tech, a lot of capital has gone into Bitcoin mining equipment. 2. That is where we are with Bitcoins. Redirecting to /r/mrmoneymustache/comments/mz1sma/thoughts_on_mmm_why_bitcoin_is_stupid/h094ynt (308) Tom expressed an argument that separating the technology from this particular implementation is important, and offered his opinion that the future blockchain implementations might be none of the current ones on the market. If your chosen currency doesnt win out it goes to 0 since if it has no users it has no value. However, Bitcoin is one of the least performing major cryptocurrencies, so lets not talk about fucking Bitcoin all the time just because the price of one unit is in the thousands. Agree, the valuation of these cryptocurrencies are out of whack. I want to know will it make my day to day life easier? Its a win-win situation.. January 4, 2018, 4:25 pm. January 16, 2018, 4:53 pm. My mother in law collected beanie babies and I had the pleasure of looking up their worth this Christmas back hometheyre about $5 each and I will owe eBay 10% + shipping. What if anything gives a compelling reason that bitcoin or any one of these other currencies will end up in the group? FriendlyPoster The FIRE movement continues to ignore #Bitcoin as an uncorrelated, rapidly emerging global asset class #whyFIREsucks. A bit frothy? Buying real estate, gold, stocks, even ETFs and Bitcoins, all of these have risk. Also, not all crypto currencies use PoW to mine / verify transactions. Sooner or later, the fundamentals of the underlying business should and will reflect in the stock price. Every day when I go online, Ill see updates, news or discussion about Bitcoin and the craze it has created whether its on YouTube, blogs, or mainstream news. A decentralised system where no human has the power to manipulate money supply is the best thing that any society can expect, to get its finances and economy in order. 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