Bitcoin on the cover of Forbes!
The most recent issue of Forbes magazine is all about the crypto revolution, and its honestly pretty cynical on the subject. They do, however, make some really great points on the issues and benefits of using cryptos.
Points:
- The Crypto bubble is incredibly similar to the Dot Com bubble of the early 2000s
- During the Dot Com bubble tons of IPOs came out, many of which were based entirely on an impossible concept. This is basically the same thing as ICOs. In the end, most of these were failures
- Day Traders are back at it again. Just like in before the DC bubble, many people are quitting their jobs and resorting to day trading as a means of receiving stable income
- People are buying Cryptos on credit
- This topic is as much horrifying as it is intriguing. Many people are beginning to buy their cryptos with a credit card. Why is this bad you ask? Anyone who has taken an AP US History class can answer that for you. Before the great depression, people became fascinated with stocks. Everyone wanted to get in on them. The fascination grew to the point that people bought stocks on margin, basically the same thing as borrowing money to pay for stocks. This was not a problem when stocks were on an uptrend. Individuals could sell a stock that they borrowed money to pay for at a higher price and still net a profit. However when stocks crashed, people could not pay off their debt. Banks and people went bankrupt. While the government has created regulations to prevent another credit crisis, the crypto world is a new unregulated frontier which is subject to the same issues as the normal economy.
- Cryptos won't go away after a crash
- Just as stocks didn't just disappear after the great depression, neither will cryptocurrencies. Cryptos identify a real problem in people's lives and promises a currency that is not tied to any government or specific organization. No matter what happens, Cryptocurrencies are the next frontier and represent the future of economies.
- The IRS and Cryptos don't exactly get along
The government has tried and failed to regulate cryptocurrencies, but such and action is borderline impossible. Cryptos transcend national boundaries and cannot be controlled by one government. Efforts to tax profits made on cryptos and to subpoena account information from wallets such as coinbase have been fruitless. In addition, cryptocurrency do not yet fit the definition of a commodity because they have a use other than being traded.
What a revolution, right?
Intresseting article, wanted to write a longer reply but I'm on my mobile so this have to do.
I do think we are in a bubble for many ICOs but for many projects like BTC I think as a value based crypto this is just the beginning.
The limited amount (21milj), billions of potential buyers in the future, huge adoption (ex: in a few months BTC and other cryptos will be added to stock market), Japan, South Korea and other countries accepting BTC and likely other cryptos and many more reasons make me think that no this is just the beginning if anything.
Just like when internet was at its first infancy 1995 i think we are getting started with crypto in a big way.
Also we now have opened the door for smart contracts which have huge use cases for enterprises. It's like web 3.0 as they call it.
Sure I can imagine the market going down but as usual it will recover and go up even more. It has occurred a few times already.
If anything this is an incredible market and I'm fascinated by it. I'm also investing in the market myself and learn more every day.
I completely agree with you. Just like how in the Dot Com bubble strong companies like Amazon emerged, strong cryptocurrencies will stay strong and grow in demand and adoption. History repeats itself, and it is plain to see that the only direction for cryptos is up
Great post but they are wrong. This is not a bubble, however the powers that be seem to think they can name everything they are afraid of, what they are doing elsewhere. lolol will they ever learn?
You have to be blind to not see that bitcoin and other cryptos have no intrinsic value. Their value is based purely on speculation and the dreams of traders. This is a trademark bubble, but if you don't believe me, feel free to contribute to the crash. Im not saying that its not worth buying or that bitcoin is useless. All Im saying is that " what goes up must come down." It was true in 1929 and its true now
To be honest you can say the exact same thing about house market, cars, gold or anything.
My house sure as hell isn't with 4 millions but that is the price. Crashes don't change anything, if goes down but move right back up. Same with stocks.
As long as you don't take a loan and can afford it, I say it's a good investment as any.
I agree to the fact is not a wise move to buy crypto on margin or get a loan, it is better to acquire them without to go in debt. Also, we are not in a bubble, many FUD is in those magazines!