So long and so much for that

Another Bitcoin post. The bitcoin train wreck continues:

I feel bad for those ppl who listened to John McAfee, Tom Lee, and other bozos last year who said to buy when it was at $10k. Bunch of suckers.

It has now fallen $2,700 since I put out the sell alert last week. The S&P 500 has gained now 7% since I put out the buy alert a month ago.

Never too late to apply, kid This high school dropout who invested in bitcoin at $12 is now a millionaire at 18

Maybe on the extracurricular activities section of the application he can write in “former bitcoin millionaire.” He has 400 bitcoin. So it needs to stay above $5,000 for him to technicality be a millionaire (assuming he does not have money in other stuff, and I’m ignoring taxes). Given how much it has fallen over the past 3 months, at this rate he won’t be millionaire by summer, latest.

Maybe Tom Lee can get him a job, since they both enjoy hyping bad investments.

In December 2017 when Bitcoin was was trading between $12,000-20,000 people that I would otherwise consider intelligent were talking about how it would replace the dollar or how the dollar was a bubble, not Bitcoin. No, it’s not going to replace the dollar, just as gold has not replaced the dollar.

There are a finite number of Bitcoin they say. Yes, and were a finite number of Enron shares too. Not saying that it’s the same thing. But it shows the stupidity of the argument.

Unless you bought ‘low’ many years ago and sold at a profit like I did, no one is gonna get rich and stay rich with magic money. Despite the huge decline, some people are rich having bought many years ago, but as Bitcoin keeps falling so will the number of Bitcoin rich people. Some say it’s a store of value, but given that the total value of all these currencies is $300-400 billion, there are simply not enough rich people to store enough wealth to equal such a large number. You’re gonna need a lot more billionaires. But also, the wealthiest of people have money tied up in stocks and real estate, rather than having a bunch cash floating around to be deployed in Bitcoin. So you would need the entirety of the Forbes 400 list to sell all their assets and put it in Bitcoin and other digital currencies for their value to be stored. Everyone says it’s a great store of value yet the only people who have a lot of value stored on Bitcoin are those who bought or mined it many years ago. It’t not like millionaires and billionaires are rushing off to dump their non-Bitcoin stuff to buy Bitcoin.

Solving the double spending problem does not justify such a high valuation. Bitcoin’s biggest problem, which I did not realize until a few months ago, is that it does not solve any important problem that necessitates Bitcoin over any other alternative. Whatever Bitcoin can do, cash can also do, except paper currency is much easier and has worked well for hundreds of years. Bitcoin is not convenient. There is no buyer protection. It’s very easy to make a mistake, and even people who are tech savvy and think they understand how Bitcoin and how Bitcoin wallets work have made critical errors, like one guy who lost 9,999 Bitcoins because he did not realize until it was too late that the Bitcoin Core wallet generates new keys for change addresses, which he forgot to backup. Whoops. $90 million gone. Bitcoin proponents who argue about how the Fed is secretive and how Bitcoin is supposed to be liberating and transparent, don’t realize that Bitcoin is more complicated and opaque than the federal reserve and fractional reserve lending (for example, people cannot even agree about how key sweeping works). For something to be successful it has to be solve a problem, and the only problem I think Bitcoin solves is storing wealth anonymously, and that is assuming that Bitcoin remains stable, because if it goes to $100 or so, you’re gonna lose a lot of wealth.