The rational case for cryptocurrency investment

[rubenParticipant 119]

Hi all

I’ve made a video on what I think the rational case for crypocurrency investment is. Its a bit dry and also my first try at such a video so be gentle 🙂

Let me know what you think.

[Anonymous 18]

I have a question.

VentionMGTOW1 over at Youtube is an advocate for cryptocurrency. And people often use an emotional appeal of ‘banksters have killed innocent people to keep their control over fiat currency by fighting unnecessary wars’ to justify use of Bitcoins, etc.

I can accept the rationality behind using cryptocurrency but what is the appeal in this idea of ‘new era of banking/transactions’?

Once you get the masses behind cryptocurrency the government could simply create a Fedcoin ® and criminalize all forms of transactions. It is illegal to create a forgery of a dollar bill.

Could this cryptocurrency thing not be just a push toward something more bankers can profit from down the line?

I don’t see billionaires sitting around and not doing anything about the central banking’s control of how people utilize exchange of goods for anything other than what their empires are built upon.

[Anonymous 6]

I just don’t like Bitcoin because it’s not backed by anything. What is it truly worth??

Now i wish I would have jumped on the Bitcoin train about 7 years ago. I’d be a millionaire, then I would just sell the stocks, keep some of the money and re-invest the rest elsewhere.

Plus, it’s not a far fetched idea to think that globalists would try to use it and other cryptocurrencies as a way to get rid of paper currency. George Soros has all but said that much.

[CarnageParticipant 22113]

Im with the old men here.

I don’t like bitcoin at all, at least cash you can touch it, gold, silver, but bitcoin…

Someone is trying to get us into something we are gonna regret, one more thing, generally the masses are wrong, and people is accepting bitcoin, the more they accept it, the more I doubt it.

To those following me, be careful, I just farted. Men those beans are killers.

[CarnageParticipant 22113]

They say the value of bitcoin is the technology… and that technology does exactly what?

It’s complex?

If I can explain how the kidney works using as example a strainer you can explain bitcoin with something too… unless the person explaining has no idea what he is talking about.

All I see is something backed on nothing that goes up and down and people is buying and selling And making real money out of Monopoly money.

There is 913 cripto currency rigth now.

We have 193 countries in the world, all Europe use euro… we have more cripto currency than countries… wtf is going on here?

To those following me, be careful, I just farted. Men those beans are killers.

[BeerParticipant 11832]

Anonymous wrote:

I just don’t like Bitcoin because it’s not backed by anything. What is it truly worth??

And to take that a bit further…I think most people want a stable currency…not something that has changed value so rapidly. The problem with inflation is it makes your money worth less…the problem with deflation is nobody wants to spend anything because its going to be worth more tomorrow.

Sooner or later Bitcoin is going to correct(or just flat out go to zero) and when it does all the people trying to make a quick buck are going to be crying it was a ponzi scheme when they realize they were the ones left holding the bag, and all the people who thought it would be a legit, viable, long term currency are going to be bitching about the 1% taking all their money or something silly when in reality they were just foolish with it.

Basically the government doesn’t care about cryptocurrencies right now because its so rarely used as an actual currency that they don’t care…its just a gambling platform. If it ever starts to see widespread use as an actual currency and interferes with the dollar at all, laws against cryptocurrencies will come fast and hard.

[rubenParticipant 119]

Sorry for the late reply guys.

“I can accept the rationality behind using cryptocurrency but what is the appeal in this idea of ‘new era of banking/transactions’?”

Its a good asset to hold. Its not money at this point it is a speculative asset. I try to explain why its a good asset in the video.

“Once you get the masses behind cryptocurrency the government could simply create a Fedcoin ® and criminalize all forms of transactions. It is illegal to create a forgery of a dollar bill.”

Neither the Fed nor the government can alter the blockchain. That being said, yes, they can make life for crypto users very difficult like the FDR administration did with gold. You would need to take steps to protect your assets, as always.

“Could this cryptocurrency thing not be just a push toward something more bankers can profit from down the line?”

The rich always get richer. Nevertheless cryptocurrency is an important step towards ecnomic decentralisation.

“I just don’t like Bitcoin because it’s not backed by anything. What is it truly worth??”

Nothing is “truly” worth anything. All value is subjective; that is one of the best insights of Austrian economics, replacing Marx’s labour theory of value. Value only exists in the human brain. Therefore something is worth what people think it is currently worth. Currently people think bitcoin is worth around $2400. I bought my first for about $1.

“Plus, it’s not a far fetched idea to think that globalists would try to use it and other cryptocurrencies as a way to get rid of paper currency. George Soros has all but said that much.”

A problem with the conspiracy leaning mindset is that it becomes all consuming. You can never look for solutions because any posited solution is necessarily “part of the plan”. The elites want a cashless society but they don’t want cryptocurrency, over which their control is necessarily limited by the nature of blockchain technology.

“Someone is trying to get us into something we are gonna regret, one more thing, generally the masses are wrong, and people is accepting bitcoin, the more they accept it, the more I doubt it.”

Depends how you play it. Nobody who rives the wave of the bubble and sells at the top regrets it.

“They say the value of bitcoin is the technology… and that technology does exactly what?

It’s complex?”

It creates an honest public ledger. Thats pretty much it.

Anyway thanks for the questions. Did you think the video was OK? For a first try?

[CarnageParticipant 22113]

Yeah the video is fine, but I’m no expert. 😁

To those following me, be careful, I just farted. Men those beans are killers.

[BeerParticipant 11832]

ruben wrote:

Its a good asset to hold. Its not money at this point it is a speculative asset.

ruben wrote:

Depends how you play it. Nobody who rives the wave of the bubble and sells at the top regrets it.

So its a “currency” that isn’t used as such, and its prone to bubbles.

You have told me everything I need to know to stay far, far away.

[Freeman_KParticipant 3524]

Crypocurrency “investment” is at best equal to horse racing or gambling “investment”.

What is the value of the digital currency where you can issue as much YOUNAMEITcoins as you want with as many zeros as you want ? Billions, trillions, quadrillions mycoins available for just 1000 fiats. Gravitating towards zero of course. Every schmuck now has his own crypocurrency so obviously until there is influx of new money price will go up but then the same as with tulips bam to near zero.

Common argument here is that blockchain is new cure for aids and revolution but seriously, this is just a technology. You can get unlimited web hosting for 5 USD per month and i see no reason why there will not be subscription based blockchain tech for peanuts in near future.

But sure if you have money to gamble, it can go still up for some time.

The choices we make, not the chances we take, determine our destiny

[Daryll55Participant 2950]

Freeman_K wrote:

Crypocurrency “investment” is at best equal to horse racing or gambling “investment”.

What is the value of the digital currency where you can issue as much YOUNAMEITcoins as you want with as many zeros as you want ? Billions, trillions, quadrillions mycoins available for just 1000 fiats. Gravitating towards zero of course. Every schmuck now has his own crypocurrency so obviously until there is influx of new money price will go up but then the same as with tulips bam to near zero.

Common argument here is that blockchain is new cure for aids and revolution but seriously, this is just a technology. You can get unlimited web hosting for 5 USD per month and i see no reason why there will not be subscription based blockchain tech for peanuts in near future.

But sure if you have money to gamble, it can go still up for some time.

Bitcoin has been “cracked” ie: stolen “BC” from accounts on record. There are ways around the block-chain just like anything else.

That said: BITCOIN has no backing as of yet, and large Banking Institutions are against the currency. Some argue of Bitcoin being a viable currency because large corporations like Amazon, Lowes, etc are accepting it as currency.

Bitcoin is the hi-tech version of a hedge currency against normal currencies. What gives it value is the AMOUNT OF SPECULATION in the currency/commodity.

Here is what you need to ask yourself concerning Bitcoin:
1- WHO controls the Bitcoin currency ?
2- What is the currency backed by ?

AS of now; There is nothing TANGIBLE backing Bitcoin.

Nothing “Tangible” backing the US Dollar you say ?

C’mon now,…… THINK about that.

Marry again, Hell NO ! ( Even JESUS was hung on a cross just once)

[Freeman_KParticipant 3524]

Daryll55 wrote:

What gives it value is the AMOUNT OF SPECULATION in the currency/commodity.

Exactly, nice definition of it. There is some value in block-chain technology though.

Daryll55 wrote:

AS of now; There is nothing TANGIBLE backing Bitcoin.

Nothing “Tangible” backing the US Dollar you say ?

There is nothing tangible backing bitcoin that is true and since value is derived from rarity crypocoins will never pass rarity by definition.

But there is something tangible behind normal currencies, some gold and while i agree that abolishment of Bretton Woods and gold standard was the foundation of the mess we find in during 2017, that is promise from government, however feeble it might be, still better then tulips or cryptos.

Buy gold and silver if you want to hedge the system, you can get it at 10% premium over production costs and gamble what you can lose on cryptos.

The choices we make, not the chances we take, determine our destiny

[rubenParticipant 119]

“There is nothing tangible backing bitcoin that is true and since value is derived from rarity crypocoins will never pass rarity by definition.”

Value is not derived from rarity, though it can be a factor. I could issue a currency called “Ruben dollars” and sign binding agreements that I would only issue RD100 and that would not make them valuable. Also bitcoin IS rare: it is hard limited to a 60 million max supply.

“But there is something tangible behind normal currencies”

Just belief in their value which is hardly “tangible”. Its the same “tangible” thing behind crypto.

I think crypto is very promising long term. In 50 years or so it may be the kind of money we use.

[HydroParticipant 164]

The video does a good job addressing some of the primary criticisms of cryptocurrency. But it doesn’t say much about the benefits, other than the ability to diversify your money among this new class of assets.

As someone who is intrigued by the possibilities of cryptocurrency I would like to more clearly understand all of the benefits of cryptocurrency. Especially the potential to remove at least some portion of one’s personal finances from intrusion and control by government and central bankers.

[rubenParticipant 119]

Fair point, maybe I’ll do another video addressing that more directly.

You kind of answered your own question to be honest; yes the ability to take your wealth out of the hands of bankers and central bankers is an appeal.

Honestly one of the main reasons is that there is still bubble growth to be had and money on that table to take. Crypto can be lucrative with just a little knowledge though obviously it is just as risky.

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