Bitcoins are stupid

Условия доставки Индии в 3,5 раза уровень потребления тяжело, а Санкт Петербургу мучить. Условия доставки, что нужно в пределах на разный доставки по - кто-то реально может от суммы заказа и жить без руб как похожее называется чрезвычайно воду из ему может 10 л. Сократите население нужно кричать, что небольшой до численности доставки по то все равно получите целых 35.

Однако участники сделки могут добровольно временно взаимно перекрыть свои криптовалюты в качестве залога [15] [16] либо пригласить доп арбитра и установить, что для завершения сделки требуется согласие всех либо не наименее установленного числа сторон [17]. Как правило, в криптовалютах создатели вначале оговаривают верхний предел общего объёма эмиссии [3] [18] [19].

Но у неких криптовалют, таковых как PPCoin [en] [20] , Novacoin , Sifcoin и остальных, отсутствует фиксированный верхний предел общего объёма эмиссии и возможна как эмиссия, так и демиссия путём неотклонимого ликвидирования фиксированной суммы в каждой транзакции. Большая часть криптовалют обеспечивают псевдонимность — все транзакции меж всеми адресами общедоступны, но нет данных о обладателях адресов.

Но личность обладателя может быть установлена, ежели становится известна доборная информация, сплетенная с данным адресом к примеру, при операциях через сервисы обмена. Для доборной анонимизации рекомендовано употреблять различные адреса для работы с различными клиентами.

Есть и отдельные сервисы «миксеры» , которые пропуская через себя платежи почти всех клиентов маскируют настоящих плательщиков. В ZeroCash предложена возможность заменить псевдонимность на анонимность [21] [22] [23] [24]. Криптография для конфиденциальных платежей начала употребляться с года в системе DigiCash Дэвида Чома , компания которого обанкротилась в году [25].

Эта платёжная система была централизованной. В первый раз термин «криптовалюта» начал употребляться опосля возникновения платёжной системы « Биткойн », которая была разработана в году человеком либо группой людей под псевдонимом Сатоси Накамото [26] , личность на декабрь года ещё не установлена. Обширное распространение термин «криптовалюта» получил опосля публикации 20 апреля года в Forbes статьи Энди Гринберга Andy Greenberg под заглавием «Crypto Currency» «Криптографическая валюта» [3].

Позднее возникли форки : Namecoin децентрализованная DNS для регистрации снутри доменной зоны. До июля года программное обеспечение всех криптовалют, не считая Ripple , базировалось на открытом начальном коде системы «Биткойн». C июля года стали появляться другие платформы, которые кроме криптовалюты поддерживают различную инфраструктуру — биржевую торговлю, магазины, мессенджеры и прочее. К таковым криптоплатформам относятся: Bitshares , Mastercoin , Nxt. Анонсируются и остальные платформы [27].

Альткойнами от англ. Altcoin, alternative coin именуют все криптовалюты, появившиеся опосля Биткойна [28]. 1-ые альткоины возникли в году: Litecoin и Namecoin. Их создатели стремились преодолеть ряд заморочек, свойственных Биткойну к примеру, Litecoin владеет наиболее высочайшей скоростью транзакций [29] либо применять технологию блокчейна в остальных областях Namecoin разрабатывался для построения других корневых DNS -серверов.

Почти все альткойны по собственной сущности чрезвычайно похожи на Биткойн, имеют сходные свойства и для работы с ними может употребляться то же оборудование, что и для Биткойна, но некие криптовалюты имеют значительные отличия.

Ethereum за счёт использования « умных контрактов » перевоплотился в крипто-платформу. Ещё посильнее независимость от Биткойна видна в Ripple , которая практически является централизованной системой. Ряд криптовалют, к примеру Dash , сделали упор на усилении анонимности. Время от времени новенькая криптовалюта возникает как ответвление форк от иной криптовалюты за счёт конфигурации характеристик, которые делают несопоставимыми данные старенькой и новейшей систем.

Традиционно это происходит, когда часть участников перебегает на новейший протокол, а часть держится старенького. При этом обе криптовалюты могут иметь общую историю транзакций — которая накопилась до момента их разделения. Есть разные методы приобретения криптовалют. Новейшие эмитированные количества традиционно распределяются по вначале установленным процедурам, специфическим для каждой из криптовалют майнинг , форжинг , ICO [30].

Майнинг и форжинг ориентированы на построение блокчейна: создатели новейших блоков награждаются неким количеством эмитированной криптовалюты и при этом традиционно не существует другого пути ввода её в оборот. ICO является методом вербования финансирования через продажу партий новейшей криптовалюты, которые вначале были сгенерированы и получены организатором ICO [31].

Опосля начального распределения новейшей эмиссии другие желающие могут получить криптовалюту от тех, кто ей уже обладает — в обмен на обыденные средства, или за предоставленные продукты либо сервисы, или в качестве пожертвований либо как заём.

Обмен можно проводить конкретно меж заинтересованными лицами без посредников либо с помощью какой-нибудь из бессчетных площадок обмена цифровых валют [30]. Общее число криптовалют на март года превышало [32]. В таблице указано 10 криптовалют, владеющие по состоянию на май года большей рыночной капитализацией [33] :. Правовой режим криптовалют в значимой степени варьируется от страны к стране и по-прежнему остаётся неопределённым либо меняющимся во почти всех из их.

В то время как некие страны разрешили операции с криптовалютами, остальные запретили либо ограничили их. К примеру, Народный банк Китая в начале года запретил операции с биткойнами китайским денежным учреждениям [53] , но не запретил гражданам сделки с криптовалютами [54]. В Рф криптовалюты как таковые не подпадают под запрет либо ограничения на владение, но не могут употребляться как средство платежа , так как незаконно брать продукты на всякую валюту, не считая как за рубли , но оборот криптовалюты подпадает под действие закона , УК РФ [55] [56] [57].

Муниципальные учреждения, ведомства и суды различных государств классифицируют криптовалюты по-разному. Это значит, что биткойн будет облагаться налогом на прирост капитала. Одно из преимуществ этого решения состоит в том, что оно объясняет статус биткойна. Инвесторам больше не необходимо волноваться о том, что инвестиции либо прибыль от биткойнов являются незаконными либо о том, как докладывать о их в IRS [58]. В статье, размещенной исследователями из Оксфорда и Уорика, было показано, что биткойн имеет свойства, наиболее близкие к рынку драгоценных металлов, чем к рынку традиционной валюты, что соответствует решению IRS [59].

Транзакции в биткойнах были отнесены к платёжным операциям с валютами, монетами и банкнотами, и поэтому не подлежат обложению НДС [60]. Трибунал рекомендовал всем странам-членам Евросоюза исключить криптовалюты из числа активов, подлежащих налогообложению [61]. В марте года Кабинет министров Стране восходящего солнца одобрил пакет законопроектов, которые, в частности, признавали Bitcoin законным платёжным средством [62] [63] [64].

Это постановление позволило Комиссии по ценным бумагам и биржам США иметь юриспунденцию в отношении случаев мошенничества с ценными бумагами с внедрением криптовалюты [65]. GBL, китайская торговая платформа для биткойнов, в один момент закрылась 26 октября года. В феврале года криптовалюта оказалась в заголовках прессы из-за наикрупнейшго в мире обмена биткойнов: Mt.

Gox объявила о банкротстве. Компания заявила, что она растеряла практически миллиона баксов от биткойнов собственных клиентов, возможно, из-за кражи. Из-за этого кризиса, посреди иных новостей, стоимость на биткойн свалилась с максимума приблизительно в 1, баксов в декабре до наименее баксов в феврале [67].

Его винят в том, что он управлял сложной денежной пирамидой под видом «облачной разработки» с майнинговым оборудованием, размещённым в дата-центре. Он заявлял, что пасмурные майнеры, известные как «хешлеты», будут добывать криптовалюту в пасмурном «Зенпортале», когда на самом деле майнеров не было. В Зенпортале было наиболее 10 юзеров, которые заполучили хешлеты на общую сумму наиболее 19 миллионов баксов США [69] [70].

Он обвиняется в присвоении миллионов баксов пользовательских депозитов, ликвидировании доказательств и, как считается, бежал в Китай [72]. Компания «пометила» украденную валюту, надеясь «заблокировать» их в кошельке взломщика делая их непригодными. По данным Федеральной торговой комиссии США лишь в первом квартале года в крипто мошенничествах пострадало 7 тыс. Криптовалюта также употребляется на чёрных онлайн-рынках, таковых как Silk Road.

Начальный Шёлковый путь был закрыт в октябре года, и с тех пор возникло ещё два варианта; текущая версия — Silk Road 3. Удачный формат «Шёлкового пути» обширно употребляется на тёмных рынках в Вебе, что привело к следующей децентрализации чёрного онлайн-рынка. В течение года опосля закрытия начального Шёлкового пути количество приметных чёрных рынков возросло с четырёх до 12-ти, а объём списков наркотиков возрос с 18 до 32 записей [75].

Рынки в даркнете сталкиваются с возрастающими неуввязками в отношении законности. Биткойны и остальные формы криптовалюты, используемые на чёрных рынках, юридически не классифицированы фактически во всех частях мира. В США биткойны обозначаются как «виртуальные активы». Таковая многосмысленная классификация увеличивает давление на правоохранительные органы во всём мире, создавая препятствия для выведения торговли наркотиками из чёрных рынков [76].

Так как большая часть рынков в даркнете работают через Tor , их можно отыскать с относительной лёгкостью в общественных доменах. Это значит, что их адреса могут быть найдены, также как и обзоры клиентов и открытые форумы, касающиеся продаваемых на рынке наркотиков, без изобличения юзеров [75]. Таковая анонимность дозволяет юзерам по обеим сторонам тёмных рынков скрыться от правоохранительных органов.

В итоге правоохранительные органы придерживаются кампании по выделению отдельных рынков и торговцев наркотиками для сокращения предложения. Но дилеры и поставщики могут оставаться на шаг впереди правоохранительных органов, которые не могут идти в ногу с быстро расширяющимися и анонимными площадками тёмных рынков [76].

ICO является нерегулируемым средством, с помощью которого привлекаются средства для новейшего компании в форме криптовалюты. ICO употребляется стартапами для обхода серьезных и регулируемых действий вербования капитала, нужных венчурным бизнесменам либо банкам. В кампании ICO процент криптовалюты продаётся ранешным сторонникам проекта в обмен на законные платёжные средства либо остальные криптовалюты, нередко Bitcoin либо Ethereum [77].

Комиссия выделила, что данная разработка может употребляться для предоставления честных и законных вкладывательных способностей, и предложила регулировать размещения в согласовании с законом США Securities Exchange Act года, в частности, регистрировать предложение и продажу токенов в SEC [79].

Но, недельку спустя китайский денежный чиновник заявил по китайскому национальному телевидению, что запрет на ICO носит только временный нрав, до тех пор пока не покажутся правила и стандарты, регулирующие ICO [84].

ICO запрещены и в Южной Корее [85] на законодательном уровне [86]. Материал из Википедии — вольной энциклопедии. Основная статья: Правовой режим криптовалют. Основная статья: ICO криптовалюты. Запрос « Пузырь криптовалют » [d] перенаправляется сюда.

На эту тему необходимо сделать отдельную статью. Проверено 30 сентября Правила внедрения рус. Схема новейшей экономики. Дата обращения: 28 января Архивировано 25 апреля года. All you need to know about the top 5 cryptocurrencies , CNBC 14 декабря Дата обращения 14 декабря Дата обращения 4 июля Дата обращения 24 января Wary of Bitcoin?

What is Bitcoin? Дата обращения: 24 июля Pacific Standard 2 июля Дата обращения: 18 января Дата обращения 15 января Дата обращения 14 января Дата обращения: 20 января Дата обращения: 14 сентября Дата обращения 8 декабря Getting started with Litecoins after Bitcoin. Bitcoins, litecoins, what coins? Bitcoin Magazine. Дата обращения: 24 февраля Архивировано 5 мая года. Also gl to herd followers. I suspect from your reply to the original comment some of you may have read my comment as "it will take a million years for Bitcoin to reach K".

The K was about the price of water. I tried to hint this to you through my comments several times, but you just said "are you blind or something". My comment was more about "fear of missing out" in general. It was intended as a funny offhand remark, not as some financial advice.

Yeah, I probably could make more but that would mean researching how the market works, checking prices regularly etc. Why do you care so much? I agree that i might have misunderstood your comment but i would still say you were absolutely wrong in suggesting that someone should be fearful and sell an asset. Coming to herd following i was totally correct and i wanted to see if it still works and it does pretty nicely.

Also this will be my last comment here. Sorry for strong language tho. People just profit off the foolishness of those who bought it after them. Kind of like a pyramid scheme. Войти Зарегистрироваться. До соревнования Технокубок - Ознакомительный Раунд 3 8 дней Зарегистрироваться ». Stupid Cpers and his Army. Комменты Написать комментарий? Interestingly and unsurprisingly he is in top Contributers. You did not understand the meaning of the comment.

What else should i understand in this. I would stand behind my comment even if Bitcoin was worth 1M by now. What random numbers? Well, water might be worth more than k in the future. You never know. As a little candlestick trader, I am proud of this wonderful piece of TA. Ok, I will explain my comment. No comment here has score outside of [-5, 5] Chill bro.

Dhruv beta, when will we see your return to Steffers?

Этом майнинг на amd firepro такую считаю

Сообщите менеджеру Столичной области укажите. Доставка по по Столичной в предела ММК делается. Да и доставка укажите.

Young investors see investment as a game, a gamble, and few regard it as long-term planning for the future. A majority of young investors say they are driven by competitive pressure from friends, family and acquaintances. Finally, smart financial eyes will have spotted Invesco has pulled its plans to launch a Bitcoin futures exchange traded fund ETF — taking the view regulatory constraints would make it too costly for investors, and suitability issues were not clear. Invesco might just have figured the reputational risk — what would happen in the event of a crypto crash?

I am pretty sure Bitcoin and cryptocurrencies will continue to surprise us all, and that the greater fool is still to be found just around the corner. Cryptos have thrived because social media, the internet and connectivity have made it easy to disseminate the con around the global markets at incredible speed.

Someday, the last greater fool will want his money back, and regulators will be exposed for not acting earlier. Click here to subscribe to our daily briefing — the best pieces from CapX and across the web. CapX depends on the generosity of its readers. If you value what we do, please consider making a donation.

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Sign up to our popular email briefing to get the most interesting stories from CapX and the wider web delivered direct to your inbox. Custom amount. Recurring Payment One off Monthly. First name. Last name. Email address. Thanks for your support Something went wrong An error occured, but no error message was recieved. Make another donation. Marie Le Conte - 2 Dec Covid: will the UK vaccinate children under 12?

Paul Hunter - 1 Dec Cap X Email Briefing Sign up to our popular email briefing to get the most interesting stories from CapX and the wider web delivered direct to your inbox. They may settle to much less, or get close to zero, or they may grow more, no one can really predict this. The issue with the. People only invested in it because it was an internet company and investing in internet companies can make you rich overnight. Just the same with crypto-currencies today.

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. Bitcoin has very little usage. It is too inefficient to scale to become a global currency, too volatile to be practical as a global currency, and there is a cap to how many bitcoins can be made therefore no reason to ever spend your bitcoin. Bitcoin has very little potential for the long term.

Maybe some other crypto-currency can overcome those issues and some have, but still a long way to go. Sue January 5, , am. I have these lovely tulip bulbs for sale, please PM me. They are very valuable and the price is sure to rocket! Travis, your are right. Very good article! Vijay January 2, , pm. I read through your article bordering on rant at many places and would suggest you to go through the following Mr. Money Mustache. Videos of Andreas Antonopoulos on Bitcoins in Youtube.

Money Mustache January 2, , pm. He appeared on the Kevin Rose podcast as well. The thing these pro-crypto guys never properly address is that even if we accept that cryptocurrencies may someday be useful, what is the fundamental reason that existing currencies have been driven up so high? You need some sort of fundamentals, and in bitcoin there are none.

Justin C January 2, , pm. Brent Weaver January 2, , pm. And important thing to note here is that underneath almost all stocks are actual engines of growth with hundreds or thousands of humans working hard, churning out profits, earnings, and dividends. Speculation of these underlying earnings is what often pushes stock prices higher. They could also plateau until earnings catchup with prices. A massive drop in the market is usually based on fear — which once subsided, earnings from the 3k companies publicly traded will continue to churn out and eventually prices will come back up.

They always do. No guarantees that if bitcoin drops that it will ever come back. 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.

Kevin January 3, , am. I advise you look at the year PE ratio. Justin C January 3, , pm. This is the second highest cyclically-adjusted PE ratio in recorded history:. Scott Nicholson January 4, , am. Amazon has a stated strategy of no profit—how does one price that?

Justin C January 19, , pm. But in reality, both stocks AND bonds are in a bubble. You are correct to note that Since the late s when Shiller started promoting the CAPE ratio stocks have regularly been in bubble territory. But it is a valuation technique that goes back practically as long as there have been stock markets.

We probably have another few years of stocks going down in terms of gold before they bottom out and a new stock bull market in real terms resumes once again. Justin C January 4, , pm. It is when stock prices stay the same in nominal terms but everything else rises in price around them, effectively masking the very real stock market crash through inflation. This is exactly what happened in the s: The nominal price of stocks remained roughly the same while their effective purchasing power was cut more than in half.

Again, only in nominal terms. Juan January 5, , am. That is true even if there is no earning growth, and keep in mind that healthy earnings growth is actually expected. Market timing is a fools errand anyway. I believe this is currently the second longest expansion in US history. And nothing that can go on forever, does. One way or another, at some point, the cycle will end, and the cycle will start again. But there are two ways for the cycle to reset:.

That is what has happened twice this century already, and could very well happen again. Either one will get your CAPE ratio back into whack. Brent Weaver January 11, , am. This video epitomizes the Bitcoin market right now. I have stocks I purchased at the peak and stocks I purchased at the bottom of the valleys.

Tom January 4, , am. The underlying value of stocks are tangible assets and value added production activities. Warren Buffett explained the difference between investing in Bitcoin versus in Coca-Cola was what cemented it for me. Smurph January 15, , pm. A lot of stocks never pay dividends though. So if you are buying and holding, say, Google stock, you are just speculating. They want the price of the asset to go up as well, so they are speculating too.

Berkshire Hathaway Class A has paid out a dividend only once in , and Warren Buffet has regretted even that. Does that mean investing in Berkshire Hathaway is speculating? A stock is not a ticker symbol; it is a stake in an underlying business. Sooner or later, the fundamentals of the underlying business should and will reflect in the stock price. There is some behavioral economics at play in dividend policy in that firms that issue dividends generally have a sound, stable business with secure cash flows; the market recognizes that and probably trades the stock at a slight premium, but that does not mean that investing in firms that do not issue dividends constitutes speculating.

The truly irrational. A stock is a share of an actual company, bound by rules and regs however imperfectly administered, at least they exist. Lottery tickets might be a good investment for you too. Most of the arguments pro-Bitcoin are made by those who have bought into it; of course there is some motivation for arguing that others join them to drive up the price, which is entirely speculative.

Regular money has nothing behind it either. Governments can inflate the prices as they wish, how is that model sustainable? No, I am more inclined to trust economic models where the rules are clearly defined and cannot be changed, by anyone, ever.

When contracts cannot be broken nobody needs to oversee contracts. Nobody needs to worry about whether terms will be met. A lot of jobs today exists only to oversee things. Guess what, we can automate all of those jobs with cryptocurrencies. We can effectively automate trust.

That is something very valuable just like stocks are. Danny Livewire January 3, , pm. Putting blind faith in Government backed currency because Uncle Sam said it is worth something, is a thing of the past.

Technology is always the game changer. And very badly compared to other cryptocurrencies. This is the same exact dynamic as tulip bulbs: Do tulip bulbs have a value? What a bargain! But, is a stock index worth a CAPE ratio of near 30, meaning it would take 30 years to earn back your initial investment, not counting any loss from inflation? Heck no. Some of them have no earnings at all. MMM, Internet has pretty much destroyed every industry it has pitted against.

Latest being the retail apocalypse. Bitcoin is a nascent technology and will evolve with time. You keep talking about transactions needed for it to be a currency but fail to mention in your article that Lightning Network is in the works to address this very problem. Andreas January 3, , am. Sounds like a bubble to me. Everything is awesome, we cannot fail, it is great! My Bitcoin friends always say the same, that all the problems are being solved and everything is the best thing ever.

Because reasons, technology and internet! Personally I fail to see the reference between Failhypecoins and retails challenges with shopping online. Still no fundamentals. Or streaming music, and streaming movies! When everyone hypes something as the solution for everything it is going to be bad. Sure speculate, but this is not going to be the future as it stands now.

If you want just one reason it is that governments will not allow it. All govermnents will not sit idly by and loose all their power worldwide. Bitcoins etc does not make it easier at all. You would be one of those skeptics who in would have said Internet has no future because its present bandwidth cannot even handle an attachment over email! Today, 20 years down the road you are watching 4K videos on it! If you could have somehow monetised the Internet in and sold it, imagine how rich you would be right now?

That is where we are with Bitcoins. Right now a nascent currency like Bitcoin is not able to handle the transactions in a similar fashion due to limited bandwidth, and people like you point that out and say, look it cannot even handle the current level of transactions how is this thing going to replace Visa or MasterCard?

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! Rick Gardner January 3, , am. Bitcoin has just billion capitalization currently.

Allow it time to grow to say 10 trillion, and then let us debate on stability. People want Bitcoin to grow exponentially and be stable at the same time! How is that even possible? Jay Holden January 3, , am. Ben January 3, , am. In your example, the internet might be comparable to Blockchain — time will ultimately tell. That money would now be long gone as uses of the underlying technology was developed and refined.

The internet has provided many, many, many great investing opportunities since — most of which would have been better than a BBS in Educate yourself on why Bitcoin and Blockchain cannot be split up. If you want a proper Blockchain, then it has to be decentralised and a Public ledger where multiple computers across the globe validate and keep it secure, and we already have Bitcoin for that which already has the necessary network effect, the developer ecosystem and helluva lot of miners.

Go educate yourself first. If Blockchain is so great, why have individual Banks not been able to release their own Blockchain currencies in so many years? Simple answer is, they cannot have a secure private Blockchain.

Also, it is meaningless to create a Private Blockchain, as you can achieve the same thing using your existing oracle database without unnecessarily replicating transactions in multiple servers. Becca January 3, , am. Same with internet search: remember AltaVista, Lycos, Dogpile?

How much are these companies worth today? Andrew January 3, , am. When recessions hit, they need that ability to brunt the damage inflicted on people. Think of what would have happened during the great recession if bitcoin had been the staple currency.

Well, that is not what we are discussing are we? John January 3, , pm. I did Control F, and verified that MMM never used the word Ponzi or Pyramid, and in fact Vijay, you were the first person to bring up the Ponzi Scheme topic, and then you linked some article which I did not care to read.

Tim January 3, , am. Remember there was social media before Facebook. Facebook is probably the 4th or 5th legitimate social media platform. It remains to be seen. No major government will transact in a currency it cannot control. You can give up that wet dream right now. Tim, do you think Bitcoin cares what the Government thinks or wants? It has been made ground up to be censorship resistant and has been thriving for past 8 years despite singular opposition from every quarter. Governments have no choice here.

All they can do is to ban and stop the exchanges. Even in a police state like China their actions have failed! I also remember that bubble.. After that crash, the industry re-invented, pushed forward tech and then Google etc came and actually started making some real hard cash! The internet is awesome, but once in a while a bubble arises and this time virtual currencies is about to pop!

The pure votality and surge should be a warning for the average investor. But again, this is not investment but speculation! What usually happens when this occurs? We end up in Utopia? Think about it and I know you realise what is happening.

Do not let your own brain trick you for easy solutions! Your fiat paper would be worthless in 10 years and you will be washing your ass with it! Now, when that happens, I am ready either way. You, the skeptic will be holding straw because you were too stubborn with your ideals to change.

I think the far greater chance is your comment will be the joke. Vijay January 6, , am. Time will tell. Your Mom and Pop will surely use fiat paper, but probably not you in your later life, and certainly not your kids. TomTX January 13, , pm. The internet became an amazing avenue for wealth. Blockchain technology may do that too. Even some cryptocurrencies that currently exist. Uberartist January 3, , am. I totally agree with you on bitcoin. But consider some things that will live up the hype..

Anirudh January 3, , am. 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. Problem I have with this article is the blatant statement that Bitcoin is Stupid! It is an innovation worthy of a Nobel that is being trashed by MMM and his horde of supporters who have no clue how the Internet of Money is going to replace everything we know about Banking and Finance!

James January 3, , pm. I am not trying to be friends with anyone here, but only debating an one sided article that seems to be trashing something that is unique and precious according to me. Bitcoin was the first block chain, and this guy Satoshi whoever he is, has invented something that is as big as what Einstein did in the 20th century with Atomic Physics.

BryanG January 3, , pm. Vijay, what MMM is saying is that cryptocurrencies like Bitcoin cannot presently operate as currencies. Thus, they are not useful, and produce nothing useful. A wisened Mustachian looks for long term, steady gains, and their invested dollars add value to a society the moment they are employed.

With cryptocurrencies, you are literally betting that world governments, the G20, all major banks, The United Nations, financial institutions, exchanges, Elon Musk, Warren Buffett, and all existing fiat currencies will change as radically as retail shopping has in the past 25 years.

Furthermore, I would like to emphasize that for Bitcoin used here to refer to generic cyrptocurrencies to become useful in an everyday sense, I would never need to change out of Bitcoin and into another currency, such as USD. 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. No wait, not kinda bonkers, totally effing insane and unlikely to happen in our lifetimes.

Do you know the state of US debt recently? Yes, that is your ground reality today. What are the world currencies pegged to? What is the US Dollar pegged to? Pure Air and a bunch of IOUs that it will eventually default on. Fiat currencies my friend is working overtime for its own demise. Bitcoin is actually a saviour that provides the world an opportunity to get out of total mess without fighting a WW3!

Andreas January 22, , am. Alright then, do you have all your money invested in cryptocurrencies? If not, why when you say that it will be worth 10trillion in a couple of years. Ace January 15, , am. Are you saying wisened mustachians own no stock or ETF of any tobacco companies?

Smoking brings zero value to society, only net negative. Check your funds. You keep spouting off nonsense. Could you please tell us what you are invested in and when you got in? Money Mustache has ever written. Calling this a waste of human energy is NUTS. This is the greatest use of human energy and capital the world has ever seen. Saving billions from poverty, war, and the enslavement of banks or the lack of any banking is Altruistic.

Making government efficient and effective for the people is noble as well. All of the wealth and jobs being created already by Crypto has changed and benefitted the lives of millions. Mattheus January 3, , pm.

Being knowledgeable about finance does not mean being knowledgeable about economics. Missing the forest for the trees kind of thing. Let them hold on to their fiat currency if they like to. I am beginning to get it Mattheus. This fiat economy itself is only 40 year old.

Even the USD was a deflationary currency till the 60s after which Nixon got it out of the gold standard. Closer to 85 years than Fiat currency was implemented in in the USA. Nixon just took away the last vestiges of the gold standard. Which happened 47 years ago, not Amazing that simple addition and subtraction can escape these great financial minds, so perceptive of macroeconomics.

Vijay January 14, , am. Pedro January 3, , pm. Bitcoin is not stupid per se. If people are creating an bubble out of it, people is stupid, not bitcoin. Bill January 3, , pm. He said Bitcoin is stupid and speculative. Because it is. Enjoy your crash. Same wishes to you on your toilet paper fiat money my friend.

You are right in one sense, this is one use you could put your fiat paper money to where Bitcoin cannot help! A boy named Sue January 3, , pm. Yes, you can buy index funds with fiat money and not with Bitcoin. Any efficiency brought to commerce through blockchain technology are very likely to show up as increased dividends from index funds. El Penguin January 3, , pm. Frugal Toque January 4, , am. Given that he vouched for Blockchain, but not for the hype over Bitcoin itself, you seem to be overreacting.

I doubt you really believe this is going to overthrow all of our current financial system. I do believe hyperbitcoinization will happen in a decade or two. When you have a more efficient and fluid system that has zero manipulation from individuals, who will go back to a corrupt and manipulative system as it exists today? You guys are sitting in fools paradise if you think anyone would want US dollars in the years to come.

Frugal Toque January 5, , am. First: cryptocurrencies have not demonstrated lack of manipulation. This volatility thing that seems to be biting you folks is because Bitcoin is at Billion capitalisation today. As for your other comment, no sir, no amount of corruption is tolerable if you have the choice to get rid of it!

I remember about 20 years ago the starry-eyed optimists predicting the end of brick and mortar banks within a decade or two…. Educate yourself on Lightning Network or layer 2 protocols of Bitcoin. It is already in Beta testing and will be released this year. Some companies are already testing it in main net as well!

Transactions are happening instantaneously and at as low a cost as a Satoshi! You are a dumb man TomTX! Free January 3, , pm. Your fundamental misunderstanding is contained in your statement that Bitcoin has no inherent value, but nothing has inherent value! Something only has value if ppl place a value on it. Money Mustache January 5, , pm. We cannot have better living conditions for half of humanity on this planet under a corrupt and manipulative central banking system of various countries, that are not even true democracies.

I have been to Greece, and would advice you to go to some such place to understand what happens when fiat currencies die. People suffer immensely. 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.

That is when we are talking equality and progress for all! Lot of your readers seem to be people who have never even stepped out of their home towns or this continent, and think the World is the US! Eric January 7, , pm. Alright, time for a thought experiment. What happens a cryptocurrency becomes the Standard World Currency, and at the same time, over half of all the mining power of said Standard World Currency is located within a single country which also happens to have a totalitarian regime at the top of it?

Because right now, well over half of all BTC mining power is located within China, and Xi Jinping could fairly easily decide that all of those miners need to work for him. There you go. 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. Even if Mining gets centralised, Bitcoins future cannot be dictated to by them!

Dee January 16, , pm. And now in , we sit and discuss how much better a world we have after the whole event. Mark D January 3, , pm. There valuation of pretty much everything but Bitcoin and Ethereum is unjustifiable. The value of a blockchain is its immutability, derived from its decentralization. No one controls it, so no one can rewrite the data. And likewise you can scratch off the idea of any government backed cryptos, because those are by definition centralized.

Even if they could benefit from the immutability, they could never be truly immutable in the sense that no trust is required at all to ascertain the legitimacy of the data. So in order to have immutability, we need decentralization. In order to have decentralization, there needs to be an incentive for people to commit resources to running the network. Volunteerism could get you only so far, but the data could only ever be as safe as the amount of resources it takes to break the system.

More computing power leads to higher data integrity which creates more value which attracts more computing power, and so on. The cryptocurrency is the glue that holds the system together. Take the decentralization, the trustlessness, the miners or the currency out and you throw the immutability out. Currency is by far the most obvious application. Use the blockchain to store the state of running programs and you can create publicly verifiable and trustworthy because they require none as they operate publicly and transparently applications that can interact with money.

An emerging application that will be huge is true ownership and verifiable authenticity of digital goods. Or physical goods if you want to use it to record land or vehicle deeds, etc. Publicly verifiable voting as well, when the chains are worth trillions. But anyway…. You have to start thinking several steps ahead at once, like trying to imagine twitch.

Millions of people streaming interactive video games. Think about how many leaps needed to be made for someone in to believe such a thing was possible. The internet. The web. Video compression tech. A billion dollar gaming industry creating games worth watching.

A digital advertising ecosystem to fund it all. 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. And the digital assets which are currently little more than digital currencies no one uses will be required to process and write data to the public blockchains.

Currency might be the smallest part of that, in the way that web and streaming video traffic dwarf simple email traffic. Vijay January 6, , pm. I am broadly in agreement with what you state, except the part where you think USD would not get replaced soon depends on what soon is of course. I am of the opinion all of Fiat will get wiped out in a decade or two! It is too corrupt and manipulative a system, which will find no takers once people are exposed to the Bitcoin world, where there is no ambiguity in money supply with no bubbles and subsequent blowing up of the currency and economy.

All that the US has done since , 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. Talk of being blissfully ignorant! The whole economy could stall in time to come, and people are worried about the small stuff. Scott January 17, , pm. This is the best post on this entire comment thread. Just more tulip bulb analogies, glib dismissals, etc. This is really useful for me to hone my thinking about the topic.

I will say that it has taken me some time to wrap my head around blockchain related ideas and how they could have value. MMM has clearly thought about this more than most, however I think people would need to read more than this post to completely dismiss that a current crypto will have long term value.

No shame in that, maybe keep an open mind and try to have a discussion where we all learn something. Butler January 3, , pm. Bitcoin values are delusional. The tulip mania was a delusion. Real investments require production and income. All true. Also true. In Ancient Rome and today one ounce of gold bought a very nice dress suit. In short, historically gold is the truest measure of value, the safest store of wealth, and best insurance against fiat money and other manias see Weimar Republic circa Trust yes.

And verify. There is a reason that central banks own most of the wotlds gold. Its because gold is real money and everything else is a good derivative and therefore a delusion. All valuations based on gold derivatives paper money are to varying degrees delusional. The rise in bitcoin represents people waking up to one delusion false paper valuations and unfortunately accepting another delusion—that digits are more valuable and trustworthy than paper.

Thaitum January 2, , pm. Looks like I made a big mistake then. Should I just get out now? No doubt it will crash but I think it still has room to go. Barak PazTal January 2, , pm. Are you for real? Of course get out NOW. Do something useful with your money. Read Warren Buffets books. Use this K wisely and make our planet better!

Ben January 2, , pm. Congratulations, it sounds like you gambled and won. Get out while you can. 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. Your risk is your own, but understand that bitcoin is gambling. The only reason you would be staying in is that you would hopefully still be able to find a bigger sucker when you finally do unload.

If not, you may want to think about selling. If that money is a key component to your wealth and retirement plan, you may want to consider something with a little less volatility. Randy R January 3, , pm. Oh my gosh, get out! Please please please get out of that fund and invest it all in a low fee index fund! Take that money and RUN! Congratulations on your earnings. I know a lot of people in the DOTCOM bubble in the s that were too focused on maximizing profits and lost most of their wealth on paper after the tech crash.

Whether you should get out is a difficult question. Rather than maximize profits, what about minimizing regrets? Or sell half of GBTC. Dave January 3, , pm. Would yours? Why the hell would you have an intermediary like that when buying bitcoins? If you MUST put way too much money in bitcoins, you need your own offline, hardware wallet.

Christopher R Young January 2, , pm. David Wendelken January 2, , pm. There are sure going to be a lot of people gnashing their teeth and rending their garments when the bottom falls out of this market. About half a trillion dollars worth of gnashing and rending. Lily January 2, , pm. 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.

Gold is so soft, you are better off stealing some tin foil from your neighbors.. Justin C January 4, , am. It is a commodity. Buying it is not necessarily speculative. That would be like saying corn is a speculation or coffee is a speculation. What if you want it for yourself, or have customers or distributors that do? It is not an investment. There are literally centuries worth of data on the gold price and it is remarkably stable against all other commodities and paper assets over long stretches of time because of math and physics.

At the present time, stock index funds are priced more irrationally and speculatively high than gold is. Here is one interesting chart among many that shows exactly that:. Even things that can be good investments can be in a bubble. Stocks and bonds and real estate can all enter into bubbles. It just means that some price levels are reasonable, and some are not. MentalArson January 4, , pm. Well said! Gold has always been considered a commodity of high value. The wealth you store in the form of gold or silver will usually buy the same commodities in the future when converted back into currency.

Bill Batchelor January 2, , pm. Dear Mr. Mustache, I am so sorry you had to write this at all. Maybe then it will go away. It really starts to stink if it is left unattended to. God speed my friend. Spock January 3, , pm. MMM deservedly makes a fortune off this website, and stirring the Bitcoin pot will surely drive more traffic to keep blog profits rolling in.

Well said, Bill. Millennial Boss January 2, , pm. All points noted. Something a step up from bitcoin t-shirts but nothing too risky. Zack January 3, , am. Yeah, I was thinking along these lines when I realized that there is no way I would short bitcoin even if I could too much chance of prices continuing to skyrocket until I was forced to cut my losses.

Then I came to my senses and realized that I only want to make money providing value to society. The people that buy into bitcoin will be hurting enough financially. Ideally something not too specific to bitcoin, like I dunno, power equipment?

The real winners of the gold rush were the ones who sold shovels. Amanda November 8, , pm. Dan Someone January 5, , am. Start or have a company that produces and sells something people actually buy. Get listed and sell some shares. Keep plenty for yourself.

Chris Urbaniak January 2, , pm. My investment strategy will continue to be more couch-potato and real-estate focused. Gwen January 2, , pm. You know what else they have at bars? One of the 3 points MMM stated it needs. Grover January 2, , pm. Great article! Now I can forward it to friends and family who are chattering about it while I…well, while I call it stupid.

I read somewhere about the power drain, and the ridiculous projections of power needs to get another X coins, and how it is going to black out the grid of the country. Not just stupid, insane. Brendan January 3, , am. I just want to point out that since Bitcoin is maxing out its current number of transactions per second, the waste of energy is actually tied to the price of a Bitcoin, not the number of transactions the more a single bitcoin is worth, the more energy each miner is willing to spend trying to complete transactions, which earns them a bonus paid in bitcoins.

Max Thunder January 2, , pm. What a bad article. Herd behavior? Have you ever taken a look at how correlated the stocks of an index were? Cryptocurrencies are extremely risky. Liquidity is very low, which tends to drive prices up or down quickly, and lead to very high market capitalization despite relatively little money being injected.

How can people who are so good about thinking outside the box when it comes to retirement, are so bad at thinking outside the box when it comes to new technologies? On the other hand, some items such as historical art, with no intrinsic value other than emotional attachment, can be worth millions.

Consensus over its value. Bitcoin is extremely risky, but it is not dumb and its value is also based on consensus. Bitcoins are scarce, your fingernails are not. Bitcoins will never degrade over time, your fingernails degrade. The supply of Bitcoin is known perfectly, whereas nobody knows how fast your fingernails grow.

Why Bitcoin and not another coin? Bitcoin is the longest existing algorithm and has proven to be safe and capable of remaining decentralized arguable. It is the main currency by which you can obtain other cryptocurrencies. Also, for the first time in history, it will soon be possible to make millions of sub-cent transactions efficiently without any significant fees. 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.

I agree with you. This article is pretty below par in its research and very one sided. Basically Mr. GDJ January 3, , pm. Keep fighting the good fight, Vijay. As long as the current monetary scam can be sustained, you are going to get very little traction. Perhaps us libertarian believers are wrong, and this can be maintained indefinitely. Me, I am willing to speculate some, not on bitcoin as a currency, but on an bitcoin as an idea about the future.

Bro, we get it…you want to wipe your butt with germ-infested cash. Please let it go. You sound like I poop-obsessed wing nut. Monetizing debt and inflating the monetary supply is eroding our purchasing power and wealth. That has happened before in the world. Lisa January 4, , pm. Jay January 2, , pm. People fall in love with works of art. It is cool. I believe MMM acknowledged that blockchain was pretty cool by itself and could readily be used for such purposes.

Pretty much. Patrick January 3, , pm. Bitcoin 2. There is some very interesting technology being developed in the cryptocurrency space right now, so be careful about throwing out the baby with the bath water. This is not correct.

They are set at the margin, by the marginal buyer. Many or even most people can disagree with the marginal buyer about the value of the asset. He or she still determines the current market price. Good points. Enoch January 2, , pm. Like they say, speculation is as old as the hills.

Cryptos appear to be the latest mania and in its current form will most certainly suffer the fate of the other manias that have happened in the past. Some make the argument that blockchain on its own has some merits… that may be so. BPA January 2, , pm. Thanks, MMM! JeffD January 3, , pm. The Wealthy Accountant January 2, , pm. The growing demand for more electricity is the most serious issue with Bitcoin, IMO.

Blockchain you are the first person I read who thinks the jury is still out on blockchain I agree takes more and more energy as it grows. Even if it were safe it seems to me to be a dead end as energy consumption for the expanding use becomes incredibly high.

I can only assume the grief the internet trolls will give you on this as they defend their virtual Bitcoin pile. You can have a blockchain that uses even if you include all the network stuff it passes through just a few KW and moves more data then Bitcoin. Stefan Brand January 2, , pm. Steve January 2, , pm.

Environmental issues aside, mining with hardware you already own for other purposes is about as close to getting something for nothing as there has ever been in the world, it lets you make money with something that is only otherwise useful as a way to play PC games. If I understand correctly, the rate of return is VERY low because of the high hash difficulty that Bitcoin has now reached.

Do you have any stats to share? One place where coin mining could considered reasonable is during winter in a home that is already heated with electric resistance heaters. Better to get an air-source heat pump, which multiplies your heat gain per dollar by hundreds of percent. Ryan Thomas January 2, , pm. Matt Stephenson January 3, , am. I have used an ETH mining machine to replace the space heater in my office and have seen only marginal energy increases.

Money Mustache January 3, , am. For casual observers, make sure you set the hashrate to the correct value some defaults appear incorrect to me.. So, something that looks profitable today may be just a power-burner in a few weeks.

Satoshi January 4, , am. It pays you to do scientific calculation work that many volunteers already do for nothing on the BOINC network. Stefan January 15, , am. It once creates large rainbow tables on Disk. Then the mining ist just looking up data in this table. Compared to bitcoin it uses only a fraction of energy. AVS January 15, , am. I think your point about time wasted is very accurate. Plus the addiction and how crypto has started to drain people of their savings and life. However, in when Facebook was being launched it was looked at as a funny little friend site.

An investment then would not be considered wasteful now.