8 Comments

The S curve is a good tool to show growth of companies. Bitcoin is not a company. It has no earnings, and never will. It is impossible to value other than using the "greater fool theory." If usage for purchases go through the roof, how does that make it more valuable? Pure Ponzi. I would like to know how it isn't if you think it isn't. Thanks.

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"The S curve is a good tool to show growth of companies."

It's a tool generally used to examine cumulative rates of anything that grow from zero toward a cap of 100%. It is very often used in discussion of growth/spread of technological uptake. Tech people often refer to the "Technology S-curve".

https://www.shortform.com/blog/the-technology-s-curve/

"It has no earnings, and never will. It is impossible to value other than using the "greater fool theory.""

This is just a statement of, "I can't imagine why a common medium of exchange might have utility aside the use of commodities that are simply bartering with a common unit."

Bitcoin represents demonstrated cryptographic security. Wealth storage costs are...important, and Bitcoin is the solution to that optimization problem, which asymptotically approaches the cost of energy and the machine that most efficiently uses that energy to add to the cryptographic protection.

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Isn't it too volatile to be a store of value. Doesn't it have huge government/political risks. Is is still used by criminals to hide illegal revenue? China has outlawed it, Tesla has dropped it and it hit a high in terms of criminal use in 2022, 20 billion, higher than legit transactions.

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"Isn't it too volatile to be a store of value."

Why would that be? Over the past year it's been less volatile than almost any market in the world. And its volatility now has almost nothing to do with its volatility if it reaches reserve currency status.

"Is is still used by criminals to hide illegal revenue?"

Sure, though money laundering is still primarily the job of...banks...using dollars.

"China has outlawed it"

No, they stopped mining. But India did try to outlaw it, which resulted in record growth in usage.

"Tesla has dropped it and it hit a high in terms of criminal use in 2022, 20 billion, higher than legit transactions."

Where do you get your numbers from on legal/illegal use? I very much doubt your claim, and certainly your others seem...sort of vindictive in their ignorance. I'm going to discontinue the conversation if there isn't good citation. I don't have time to type up corrections to FUD attacks that people pass around without statistics or warrants.

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Matthew,

You are just wrong about crypto on many fronts. I am hardly well versed in it. But I know for sure China has outlawed it’s use in trade for the government and citizens. They can’t mine either. Simple searches would give you all the information you are asking about, but you are not searching for facts, you are searching for answers that match your enthusiasm for crypto.

I don’t own gold, and never will, but it has been a much better store of value over the years as measured by volatility and risk.

You don’t know retail statistics for it but say how it is a good investment.

You don’t know the amount of crime committed with it and still say it’s a good investment.

It will probably never be a reserve currency and then it would be a long way out. Just more hype.

Do you realize that every time you buy something from a candy bar to a boat you create a taxable event on your taxes? It is only capital gain or loss if held for 2 or more years. Either way, every transaction is a reportable event because you lose or gain on every use of it.

https://www.reuters.com/business/finance/crypto-crime-hits-record-20-bln-2022-report-says-2023-01-12/

$20 billion. Still exceeds retail transactions

60% loss in the year in 2022. Flat since then. You call that stable value? Decades not days matter. A year is nothing. The average person can’t take that kind of risk. There is nothing to drive it higher other than promoters telling them to buy it. Again, there are no earnings, there is no income, there is no utility. Add it up, it is worthless other than collector value.

https://www.cnbc.com/2022/12/23/bitcoin-lost-over-60-percent-of-its-value-in-2022.html

I hope you aren’t playing around with your family’s money with crypto. I am afraid you are since you are pro-crypto. Try to explain that to the wife when she finds out it never had any value other than finding another gambler to buy it for a higher price. Gamblers always run out of money. It’s not sometimes. It is always. Poker is not gambling by the way. The gambling instinct is very high in human beings. This just gives them another way to lose money.

It will probably never be a reserve currency and then it would be a long way out.

I sound harsh due to 38 years of watching people getting ripped off, and this is the ultimate rip off. Unless you got in at the bottom of the pyramid.

Please take another look and don’t look for the answers you want. I know from my own experience. I did it for years.

Thanks,

Craig

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Once it has some sort of utility, which it does not now, it can start on the curve. Right now we only have a ponzi scheme. No one actually purchases anything. Miniscule amounts by groupies.

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I did make 12 purchases using Bitcoin in a single month earlier this year. But that was probably half my purchases for the year.

Fortunately, I am hearing that remittances are really starting to take off now.

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i'm new to the whole crypto thing... when you're talking bitcoin in this article, do specifically mean Bitcoin or cryptocurrencies in general? Thanks

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