Bitcoin, My Latest Thoughts
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Bitcoin, My Latest Thoughts
Years ago, I wrote about my distaste for Bitcoin and the entire crypto market. As of writing this blog post, it’s currently trading at around 64,000. Needless to say, if you had purchased it when I put my first hate email out on it and sold it today, you’d have substantially more money than you started.
I know what you are thinking, “clearly Andrew has seen the light of day, and is now a believer.” Natural, though process of course as it is hard to argue with investment worth appreciably more today than it was years ago.
Crypto 180?
Well, I am here to tell you unabashedly that if you thought I did a complete 180 on my Bitcoin/Crypto thoughts you my friend would be 100% categorically…… WRONG! As a matter of fact, I think I hate it more today than I did 5 years ago. You heard me correctly, despite the clear increase in value over that time I truly hate everything about it as an investment.
Why do I hate Bitcoin/Crypto let me count the ways:
- It still makes nothing, produces nothing, and has no real value unless there is a belief system on the other side that shares your viewpoint.
- Ask someone who owns it why, after 45 minutes of blabber and confusion you’ll realize they have no idea why they bought it.
- It is an investment as much as my worthless stamp collection as a kid is worth. Basically, once someone stops wanting to buy it from you it lacks value.
- It exudes and follows literally every bubble crash I’ve ever seen. See tech stocks, real estate crashes, and the like. The day someone wakes up and says geez this is worthless it’s all over.
- Real currency is incredibly fickle and hard to manage. Can you imagine if we didn’t have a FED what could have happened to inflation etc? Even with tons of regulation, it’s hard to regulate.
- Speaking of regulation, it is overly abused by black market dealings and criminal activity.
- Can you imagine if you lost your password and your entire net worth to boot?
- One year ago, Bitcoin was worth 29,000, today it is 64,000. How in the world can you run a currency like that? Imagine if inflation last year wasn’t at a high of 7% but rather 120%?!?! Like how one day you go to get gas and it costs you a dollar and the next day more than twice as much or half as much.
- Is it an investment or is it a currency? It simply can’t be both. You can’t have a currency that is not stable. If it is an investment, then tell me why (then be prepared for bullet 2).
- Wait a second there isn’t one cryptocurrency there are tons of them. As a matter of fact, google tells me there are 22,932 different cryptocurrencies out there. So wait a moment, isn’t the thesis that Bitcoin and cryptocurrencies are trying to have a centralized seamless unified currency? If so I have 22,932 questions.
- Every poster child of this industry has gone to jail or been indicted.
- 2.3% remember that number. That is what the estimated amount of our US energy consumption crypto mining uses. But wait, isn’t a huge demographic of this stuff environmentally conscious Gen Zers? Yup!
- But Andrew isn’t a great way to get rich quick!?!……………
And there my friends is the problem, well 13 of them to name a few, and I don’t believe in “get rich quick” schemes. I live, breathe, eat, sleep, and dream about helping people make money and get “rich.” For all the years, and all the money I’ve seen accumulated I’ve yet to see a reliable predictable way to “get rich quick.”
No Get Rich Quick Schemes
Rather the people I see that “get rich” are those that work their butts off for decades to yield the fruits of their hard work. I don’t see them or believe in getting rich quickly. Certainly, people can get lucky or fortunate, and there are exceptions to every rule. However, fundamentally I don’t buy the notion that something can repeatedly get you rich quickly, unless of course you can breed professional basketball players and your father is one of the greatest players of all time. Furthermore, for everyone to get rich quickly on this stuff you need someone on the other side to keep bidding more and more and more and more and more for said product.
So to answer the question from before, no I still am vehemently against cryptocurrencies in their entirety. Unless of course, you have a few extra dollars you want to gamble with, which of course is fine, I see no real use for it at all.
That said plenty of people a lot smarter than I feel differently, so I am not saying I am right. I am, however, very opinionated on this topic and see much more doom than promise.
Sorry if I came off harsh or shattered your or your kid’s dreams, as maybe I am completely wrong. Regardless, hoping gave you something to think about and naturally stay wealthy, healthy, and happy.