I seen an article floating around about how Bitcoin is a bubble, coming from a Nobel prize winning economist.
Billionaire investor Howard Marks told his clients to avoid high-flying digital currencies in July.
"In my view, digital currencies are nothing but an unfounded fad (or perhaps even a pyramid scheme), based on a willingness to ascribe value to something that has little or none beyond what people will pay for it," Marks wrote in an investor letter.
Here is what Buffet had to say
”Stay away from it. It's a mirage basically. It's a method of transmitting money. It's a very effective way of transmitting money and you can do it anonymously and all that. A check is a way of transmitting money too. Are checks worth a whole lot of money? Just because they can transmit money?" Buffett said on CNBC in 2014. "
Here is why I don't get fazed.
In these article a clear lack of knowledge for cryptocurrency and the developments in the field as well as a lack of an ability to see potential is displayed.
Buffets remark is laughable comparing BTC to a check, let me illustrate this
The internet allows people to send information over a distance so does a letter …. Does the value the letter offers compares to the value the internet brings?
Or how about a bicycle, it is used to travel from point a to b, so is an airplane, big difference !
What many people don't understand is that the currency part in crypto is not the main thing.
ITS ALL ABOUT THE BLOCKCHAIN
(aka the publicly distributed ledger)
For instance what is Steem ?
Its just a digital currency right ? Thats what this is all about...
Well no Steem is just the fuel behind Steemit, its about the content, the community and its also about transparency and fairness.
Steemit has incredible potential all on its own, imagine how many people in poverty struck places can and already have had and will have a chance to brake out of poverty with steemit and other cryptocurrencies and crypto related activities .
This is a big part of the value of cryptocurrencies, their liberating properties,
https://www.cnbc.com/video/2017/08/30/bitcoin-mining-can-land-you-in-jail-in-venezuela.html
Bitcoin sprung up shortly after the 2008 finical crash, It was an attempt to lessen the dependency on the government and banks,
You can't put a price on freedom can you ? Well Mcafee is saying its about half a million + per bitcoin in three years time
https://www.cryptocoinsnews.com/john-mcafee-claims-bitcoin-will-worth-500000-three-years/
Here is another opinion leader with a more humble prediction,
What do I think ? Its nearly impossible to say for certain what the value will be as there are far too many variables in the equation, and simplifying it will only give lose predictions.
BTC IS NOT GOING AWAY
What I like about what John Mcafee says is the inclusion of inflation and issues with fiat currency in his price prediction,
Those are solid point, What gives things like gold value is that its not effected by inflation, the supply is limited.
Lets say you have a 100 dollars you saved in a safe, you had it for almost 7 years, You feel like you know what its time to spend that money,
you put the money in the safe In 2009, the relative value of $100.00 from 2009 is $89.12 in 2016.
yikes you just lost buying power in a few years.
If you invested a 100 into bitcoin instead, you would have over 72 million !
Now you would have had to been lucky, brave and patient to get this far and its always easy looking in hindsight.
When taking inflation into consideration, the capped supply of bitcoin and its increasing mining difficulty, its easy to see that with increased demand the price will continue to rise,
Where do you think we are in the innovation bell curve?
If you ask me we have nearly crossed the early adopters section and the early majority is coming very soon.
As the early adopters started rushing into bitcoin around 2013-2014 the price started shooting up form $ 200 to $ 1200 and then the price crashed to $ 600…
I believe I know why this happened, and why something similar will happen again, crazy growth and then a big crash, keep in mind the innovation bell curve, it started off small bitcoin had some nice gains and crashes but the early adopters had yet to experience these, as this new money rushed in with those early adopters, the visionaries and the VC money they brought along with them, this gave the market a huge push reaching those highs but this new money not being used to this industries volatility were more susceptible so the effects of FUD (fear, uncertainty, doubt)
I believe this is likely to happen again during the time when the early majority rushes in unreal gains and then huge dips but at the end of the day I know the bitcoin community is strong and is very supportive and will make it.
The uses for bitcoin are limitless, its no surprise banks are looking to benefit from blockchain technologies
hope you enjoyed reading and got some more perspective, please resteem and share with friends to help combat the FUD
Bitcoin has already died 159 times so far
https://99bitcoins.com/bitcoinobituaries/
Your comments and question are welcome