Jamie Dimon: Bitcoin is a 'fraud'
Michael Novogratz: Cryptocurrencies like bitcoin are 'going to be the biggest bubble of our lifetimes'
Jim Cramer: Bitcoin is like 'Monopoly money'
Howard Marks: It's a 'pyramid scheme'
Mark Cuban: Only invest if you're prepared to lose your money
Jack Bogle: "Avoid bitcoin like the plague. Did I make myself clear?"
These are quotes from investors and billionaires I found when reading background for my post on Zuckerberg looking into cryptos yesterday. What I find interesting is I mostly agree with them. Bitcoin and cryptocurrencies like Bitcoin are likely to become a massive bubble.
But, I don't trust these people, they didn't make their billions being half-informed, they made it on being well-informed. The last quote by Jack Bogle goes on:
"Bitcoin has no underlying rate of return," Bogle continued. "You know bonds have an interest coupon, stocks have earnings and dividends, gold has nothing. There is nothing to support bitcoin except the hope that you will sell it to someone for more than you paid for it."
Is he wrong? No. But what they all fail to mention is that some of the alt coins do not function like Bitcoin and are likely going to fundamentally change the ways businesses manage their information, supply chains, transfer funds, reduce administration costs and all of the other transactional benefits including big data collection.
These quotes about bitcoin remind me of this one:
"I think there is a world market for maybe five computers."
Thomas Watson, president of IBM, 1943
Watson was right, there was only space in the world for maybe 5 computers of the type he knew and in the world he knew. Unfortunately, even the President of IBM didn't know what was to come and was yet to see all of the technological advances that would make his prediction look naive at best. But remember, along that pathway to all of us holding computers in our hands, there were many promises and failures. It will be the same for cryptos most likely too.
However, when I read these quotes I can't help to get a sense of 'FUD' or 'fake news' being spread by these master investors. It could be because I am more heavily aware of alts but, too often these people only speak of Bitcoin as if it is interchangeable with all of the others. It is like complaining about Ladas as if they are synonymous with a Ferrari. Sure, they both have four wheels, same same.
It seems like they are purposely steering the conversation into Bitcoin and away from the alts. As gimmicky as they were, cryptokitties showed some potential for a whole range of digital applications yet, Ethereum goes unmentioned. In my opinion, these people are not uninformed nor misinformed, they are smart and savvy investors.
The Market Cap is being driven intensely upward by these kinds of people and the banks they partner with while, Bitcoin dominance is falling. Are they making it look like all cryptos are unsafe by paring them psychologically with bitcoin whilst laddering into all of the other alts with potential products and solutions?
If in a year or two they are questioned after making billions in crypto, 'Hey, didn't you say Bitcoin was a bad investment?' they can truthfully answer 'Yes, Bitcoin. But EOS, Steem, Ethereum and many others are brilliant investments!'
Some talk about it being like Vegas as if that should be something to avoid. Being comfortable in the uncertainty is what got most of them to where they are today, as did holding their cards close.
I don't know for sure, but it seems that whenever I read something in the mainstream media about cryptos, vital bits of information that any real investor or journalist should be aware of are missing. With the interest and volume of articles flowing around the topic now, this points to it being intentional.
Perhaps it is greedy investors wanting to maximise their profits or maybe an attempt to limit the decentralised nature of cryptos. Whatever it is, I feel like those who have a chance to improve their lives through decentralised technologies, will again be put at the mercy of the few.
Perhaps, I am just crazy also. Btw, the Bogle quote could also be saying, 'look into alts'.
Taraz
[ a Steemit original ]
I agree, bitcoin is not as good as most alts are. It's a slow technology that is way too overhyped. So many alts are way better in every aspect, except the price. I don't believe in bitcoin anymore, because it simply doesn't offer the technology that most good cryptos have. For example, steem is way better than bitcoin, because at least it has some sort of usage on steemit. Where can you use bitcoin? The only thing you can use it for, is selling it. But who knows, the price could still go higher than it already was at the highest point, but I think this will be the year that another crypto might take over bitcoin.
It is difficult and will stay difficult for a while I think. But your story about IBM is a reminder that 'these people' are not always right. You made the suggestion that it is 'an attempt to limit the decentralized nature of cryptos', my son @exyle thinks that's certainly an option.
It's always wise to invest with money you can afford to lose, but that's also the case with investing in stocks or land or whatever.
Smart boy ;)
Exactly. Saying 'only invest what you can lose' adds nothing to the conversation about Bitcoin as it is investing 101 since time began.
Feel like many of those that say Bitcoin is a fraud or bubble have something to gain by it's failure. Also none can say when the "bubble" will pop or how low it would go if it does. There are plenty of large holders of each coin that any of them could be crippled tomorrow if those holders decided to sell, but unless they do demand must stop increasing for the price to stop increasing.
Currently all signs are that demand in increasing and good things are to come for the short to mid term.
long term could this be a bubble? Sure, but every bubble has made many millionaires so at the very least I want to get my piece of this pie.
I totally agree.
Thing with those people is that they’re talking about Bitcoin. They’re not talking about Ethereum, or Ripple. They’re not talking Altcoins, except Novogratz in that quote but then again he is talking cryptocurrencies like Bitcoin.
And they’re all right. Aside from the fact that we are closing in on an ever more possible cryptocalypse (twitter thread by a genuine crypto currency authority), those cryptoes like Bitcoin have no use case. None other than the digital gold.
That semantical difference, or was it a pedantic one, is important here. Even more so in the case of Novogratz, who was launching a $500m crypto hedge fund, one of third of which his own money, but delayed the launch and the fund is currently paused.
What that means is that the moment just isn’t right. This isn’t a bull run. This is a (mini) madness bubble currently. Everything is overvalued and that currently can not be defended. End last year we were at double the price for Bitcoin of the Novogratz hype building, to raise for his fund, that BTC would reach $10k by April.
It’s a bubble. As simple as. Proof: $XRP.
Referring to Thomas Watson is kinda... I don’t know. Hindsight, water, and bridge come to mind. Bill Gates also once famously said that no personal computer would need more than 64kb RAM.
Despite that gaffe both went on and revolutionized the world, making happen what would put specific quotes by each one in articles for decades to come. Basically contradicting their own predictions.
@tarazkp I think the example of Thomas Watson says it all. Our world is changing dramatically nowadays.
Besides, not even BTC can be considered mainstream yet, so I bet those statements come from people who know little to nothing about alts and especially Steem.
For the fact that no one can say for sure how the whole crypto business is going to end up, I think investors should be wise enough to put some of their money into real life investment and not just virtual stuff so that when shit hits the fan,you can still survive. #myownthoughts
So true and today seems to be the day everyone is realising - I'm loving it!
Glad I sold bitcoin and bought alts :)
Today for the first time in crypto history Bitcoin is not number one by volume -Etherium is -I'm having a Bitcoin is going down party!
By the time alts are finished... Bitcoin will be flying along with only 12 people transferring :P
I think what we are witnessing right now in cryptos is a supercharged hyped up bubble be very interesting to see how it all pans out
it is just starting.
This is a brilliant article! Although I was pissed off for a lot of times when i read always about this fucking bitcoin, while all these other brilliant projects are left unmentioned, I never thought about that this could be on purpose. Thanks for that man ;)
I don't want the old system back as soon a new one started to arise. Let's all pray for a better future. It's possible. Even with some dickheads throwing their billions around.
cheers ;)
Bitcoin or any other cryptocurrency shouldn't be considered as investment. Rather people should adopt to use it as currencies.
The whole investing thing will make many people lose money in the long run.
At present there are many different opinions in both camps pro-and contra and that is hte most confusing for majority of middle aged population, young people are growing up with it and it is easier for them to understand and to decide. But when I think about the banks and currencies that we ahve at present, for example in UK we have GBP and 6 years ago one GBP was around 1.34 Euro but now it is 1.08, the government and TV still telling us daily that it is stable and it is going to rise again but it probably never reached the level it was few years ago. How those people can judge cryptocurrencies they all have no idea in this field. I only can advice the people to educate yourself, think for yourself and decide. What do you think about that?
Yes, people should definitely spend some time educating themselves a little more. In many areas.
Of course there will be a bubble and of course it will pop just like the .com boom. The important bit to note is that some will survive. Those that have real products with real purpose.
I hate talking to traditional investor's about crypto. They are all so negative. To quote our bank manager "Oh your in that are you? Well if you have made any money I suggest you get out now!" It makes me sad for them as don't they know what they are missing out on. It's also annoying how many people assume that bitcoin is the only cryptocurrancy that exists come to think of it they dont even know what cryptocurrancy is. They assume it's just called Bitcoin all of them. The media are keeping it all a bit close to home and you are right it's not as if they are misinformed.
I really think that they are steering people clear until they have gathered and circled the wagons. When they are ready, they will unleash their plans.
Financial bubbles were made famous by Charles Mackay in his book “Extraordinary Popular Delusions and the Madness of Crowds” way back in 1841. It continues to influence the financial industry today because the fundamentals of human psychology have not changed. But technology has changed the way value can be distributed and I don’t think very many people get that yet. When sophisticated investors think 'Bitcoin,' they remember quotes like Sir John Templeton’s:
They believe that Bitcoin has little intrinsic value and the price is being determined by irrational people therefore it is exhibiting the classic signs of a bubble. They don’t think this time is different.
I’m not so sure they are as savvy as we think they are. Most “brilliant investors” are really good at one or two kinds of investing and that’s it. If you read “Stock Market Wizards” by Jack Schwager you’ll see they find their niche and stick with it often getting lucky before getting good.
So maybe they really don’t know the technology and the potential that crypto currencies like Steem offer simply because they can’t get the old ways of thinking out of their heads.
Or, you could be right and they’re just greedy bastards looking to take over the world.
I prepare for this. :)
I think that at that level, they aren't relying on one or two people to find out for them, they have teams and their teams have teams so they will find people close enough to get the 'right' information. what we should be doing is FUDding them.
great subject mr.tarazkp
Wow, it's interesting to know how many people support cryptocurrencies, and the quality of people who remain skeptical. They are risky bets and they are backed by the bitcoin community.
nice post sir thanks for sharing
I can not believe you gave me a vote! I apologize to you, I think we started with the left foot, you see that you told me you misunderstood, I did not ask you for a vote, I wanted to call your attention so that you would give me your vote for my contribution in steemit, thanks for taking into account This humble plankton, greetings, you have earned a follower!
I vote for ocd resteem posts.
I get it! we read by ocd-resteem greetings. :)
Yes, Bitcoin may well be that indeed!! ;)