The Guardian Goes FULL Retard: 'Don't Invest In Bitcoin Because It's Like Gold'

aferrell (55)in #crypto • 6 years ago

I have seen some terrible analysis and opinions in my day in regards to Bitcoin and cryptocurrencies, but an article published this morning in the US edition of The Guardian takes the cake.

The article written by Mr. Money Mustache, a "financial blogger," tells readers to avoid investing in Bitcoin and other cryptos because like gold, and "tulip bulbs" (crickets) they are only bought because people think they can sell them at a higher price.

Let’s start with the answer: No. You should not invest in Bitcoin.

The reason why is that it’s not an investment; just as gold, tulip bulbs, Beanie Babies, and rare baseball cards are also not investments.

These are all things that people have bought in the past, driving them to absurd prices, not because they did anything useful or produced money or had social value, but solely because people thought they could sell them on to someone else for more money in the future.

Mr. Money Mustache (cut me a break with that name) may be right that the tulip bulbs during the 1600 mania had little social value, but to say gold has no social value is absurd. Anyone who has the slightest understands as to why gold has value and historically has been used as a medium exchange can laugh this off as the most insane FUD of all time. Not only is gold's finite existence on this planet a reason it has value as a medium of exchange, but it also has applications in industry and value in human cosmetics.

And in regards to Bitcoin resembling gold, take it from Goldman Sachs, who recently said that the digital currency could act as an inflation hedge like the yellow metal.

Mr. Money Mustache actual makes a good point following his gold FUD when he explains that a good investment "means buying an asset that actually creates products, services or cashflow, such as a profitable business or a rentable piece of real estate, for an extended period of time."

I totally agree with him here and his assessment that there is a FOMO mania occurring in crypto. And he seems to think there is value in blockchain tech.

But Mr. Money throws more idiotic FUD around when he takes a dagger to the libertarian movement behind cryptos and backs fiat currency as a superior form of money.

This financial libertarian streak is at the core of bitcoin. You’ll hear echoes of that sentiment in all the pro-crypto blogs and podcasts.

The sensible-sounding ones will say: “Sure the G20 nations all have stable financial systems, but bitcoin is a lifesaver in places like Venezuela where the government can vaporize your wealth when you sleep.”

The harder-core pundits say: “Even the US Federal Reserve is a bunch ‘a’ crooks, stealing your money via inflation, and that nasty fiat currency they issue is nothing but toilet paper!”

It’s all the same stuff that people say about gold – another waste of human investment energy.

Government-issued currencies have value because they represent human trust and cooperation. There is no wealth and no trade without these two things, so you might as well go all in and trust people.

The idea that fiat currency "represents human trust and cooperation" would make sense if the use of fiat happened through voluntary means, but it doesn't. Populations are forced to use fiat currency by government and central banks.

So, what this article is saying is 'trust the banker controlled money that has no finite supply.'

There is a larger reason why people are flooding into the cryptomarket, and it is exactly what this author is turning his back too. There is a revolution going on against the fiat central bank issued notes. When a central bank is given the power to create credit out of thin air it creates a GIANT incentive for criminal behavior to take place. Can anyone say wealth inequality?

Overall, this guy's take on gold is really disturbing and I will show a few charts below showing how both gold and Bitcoin have outperformed fiat.

Do not take this guys advice. Invest in crypto. Take your money out of the fraudster, banker controlled, debt-driven, 0.001% benefiting system and help put power back into the people's hand by opening up a new market of competing currencies. (Obviously, that is my opinion and just like any other investment I wouldn't put anything I couldn't afford to lose on the line)

USD purchasing power since Federal Reserve Act was signed into law