A long time ago only computer programmers and tech nerds knew what a bitcoin was, how to store it and where to buy one. In 2017 I'm just going to go ahead and say it, Bitcoin has become mainstream.

Bitcoin has made record gains in 2016 and 2017 and the price of a single bitcoin went from $570 to over $4,300 -- an astounding 750% -- in just the last year.

An article I recently came across on the Forbes website 'A Bitcoin Is Worth $4,000--Why You Probably Should Not Own One' caused me to become a bit upset, not because of the headline but rather I felt that many of the points made in the article I not only disagreed with but also had strong counter-points for.

Breaking apart 'A Bitcoin Is Worth $4,000--Why You Probably Should Not Own One'

Here's the first point I would like to rebut:

Even though most people don't even know what they are, Bitcoins increased in value from about $570 to over $4,300 -- an astounding 750% -- in just the last year. Because of this huge return, more people are becoming interested in possibly owning some Bitcoins hoping to make a fast fortune. That would be very risky.

To this I would say that although the gains on Bitcoin in 2017 (750%) do seem astronomical, consider that Bitcoin has a huge network effect, it can be used to purchase things like airline flights and goods from Overstock.com and it is the portal into all other cryptocurrencies through exchanges like Poloniex and Bittrex these gains can be understood more clearly. Furthermore there will only ever be a maximum of 21 Million bitcoins in existence. How many dollars will be printed? How many pounds? How much Yen? Rupees? Euros?

What is economic freedom worth to people and would you rather hold your own money (bitcoin in a hardware wallet) or do you trust a bank to hold it for you more?

Here's several more points that I would like to rebut:

What makes Bitcoins unique, versus other currencies, is that there is no financial system, like the U.S. Federal Reserve, managing their existence and value. Instead Bitcoins are managed by a bunch of users who track them via blockchain technology. And Blockchain technology itself is not inherently a problem, since there are folks figuring out all kinds of uses, like accounting, using blockchain. It is the fact that no central bank controls Bitcoin production that makes them a unique currency. Independent people watch who buys and sells, and owns, Bitcoins, and in some general fashion make a market in Bitcoins. This makes Bitcoins very different from dollars, euros or rupees. There is no "good faith and credit" of the government standing behind the currency.

1.) The U.S. Federal Reserve doesn't manage their existence? I would say this is a benefit rather than a disadvantage. Isn't the Federal Reserve also responsible for many of the economic decisions made in regard to the management of the U.S. economy? How much debt does America have at this point again? Oh, thats right, only about 20 Trillion Dollars.

http://www.usdebtclock.org/

2.) There is no government standing behind Bitcoin? Is that statement completely true?

Last I read South Korea has declared it legal so this author clearly doesn't know what he is talking about... Bring some sources next time buddy...

https://nextshark.com/bitcoin-now-officially-legal-south-korea-payment-method/

Other countries will follow suit if they know whats good for them...

Techblogger Wrap Up

Honestly, I could just keep going on and on with this train of thought but what's the point? Once you read an article that has so many mistakes and unsupported facts being peddled as truth to an uneducated mainstream that doesn't understand the technology beyond what's said on CNN and Forbes, there's really no point reading any further.

Here's the link to the article for your own review:

https://www.forbes.com/sites/adamhartung/2017/08/15/a-bitcoin-is-worth-4000-why-you-probably-should-not-own-one/#1283c2453b08

Lets get a discussion going on this topic! Please leave thoughts, comments and feedback below!

Thanks for reading.

Sources:

A Bitcoin Is Worth $4,000--Why You Probably Should Not Own One - Forbes