BITCOIN Be an investor, not a speculator, and avoid Bitcoins
I do not agree but its a good article on the other sides viewpoint.
In the 1630s people in Holland thought of tulip bulbs as stored value. Tulips were desired, giving tulip bulbs value. But over time people acquired tulip bulbs not to plant, but rather for the stored value they represented. As more people bought bulbs, and put them in a drawer, the price was driven higher, until 1 tulip bulb was worth 10 times the typical annual salary of a Dutch worker - and worth more than entire houses. People thought the value of tulip bulbs would forever go up.
But, there were no controls on tulip bulb production. Eventually it became clear that more tulip bulbs were being created, and the value was much, much greater than one could ever get for the tulips once planted and it flowered. Even though it took many months for the value of tulip bulbs to become so high, their value crashed in a matter of 2 months. When tulip bulb holders realized there was nobody guaranteeing the value of their tulip bulbs everyone wanted to sell them as fast as possible, causing a complete loss of all value. What people thought was stored value evaporated - leaving the tulip bulb holders with worthless bulbs.
This is why almost none of us should own Bitcoins. Bitcoin value has multiple weaknesses. Someone could hack the blockchain, create more Bitcoins and manipulate the value, or sell the illegitimate Bitcoins and abscond with the buyers' dollars. Or groups of users can place large buys and sells of Bitcoins, manipulating their value, because there are no controls. Or Bitcoin users could simply start using other crypto-currencies or traditional government issued currencies and the market could fold completely, making Bitcoins worthless, as has happened to other crypto-currencies. Any one, or all, of these things could happen at any moment.
