patrick.net

HEYYOU says

Guess you missed the cost to the electrical system to run the Bitponzi.

That was the other point that story in the WSJ made, besides the huge server farms that will be objectionable to environmentalists, is the huge amount of electricity consumed.

anon_7b43f says

their profit margin would increase dramatically based on avoiding the fees that come from the middlemen.

While I agree with this and think it would be better for consumers and businesses to whack the fees, the middlemen you mention aren't just going to bend over and take it. They'll just compete and make it not worthwhile to have their clients switch over to bitcoin (or any crypto). Or they'll find a legal way or lobby to have bitcoin outlawed.

Also, only people that own bitcoin are pushing for it to be used as a payment method. I don't have bitcoin, so I have zero use for it. I'm sure it's higher, but 99% of people on this planet don't have a single fraction of a bitcoin. I haven't been to a brick and mortar store that accepts it. Even if they did, it would take time to obtain coins and then add an app to my phone (or something) to make the payment.

It's not as anonymous as most espouse it to be and is easily stolen from naive people getting into it that have no business doing so. I still have my cash and can be as anonymous as I want, but don't have any reason to do so because I don't transact in illegal activities (same with 90% of people).

If I have $250,000 worth of cash in the bank, my government guarantees it. Bitcoin, not so much. Talk to Mt. Gox. And if the news and stories are to be believed, 650,000 coins aren't accounted for. Or 3% of all TOTAL bitcoins from one theft. Right now that's probably around 5% or so of bitcoins available.

I can go into a bank, commit $20k to purchasing a $100k investment property and can make more dollars collecting rent from others that transact in the worlds reserve currency. Not so much with bitcoin.

I can put my dollars into a tax deferred 401k account, avoiding taxes today. I can't with bitcoin (as far as I've seen). Saving me 25% on my top end tax bracket and allowing that 25% savings to compound at a historical average of 7% in the stock market plus the original amount put in.

And I'm just scratching the surface here. Bitcoin (and cryptos) are speculation vehicles. I actually have no problem with them or people that invest in them. I've been reading a lot up on it and nothing has convinced me that bitcoin is sticking around for the long term. Nothing. I don't have the risk tolerance for it, but if you do go for it. If you can, let me know how bitcoin can equal or beat any of the above I'm all ears. (This is for anyone, not just the quoted comment)

Bitcoin resembles gold. It's all in the spot price, pays no dividends, the fundamentals do not "Grow".

Unlike say, stock in a coffee franchise that goes from making $5M a year to $50M a year.

Referring back to the other thread on Real Estate, stocks are far more liquid.

In my mind, there are 2 games with BTC
Game 1: The utility of BTC is NOT to add anything other currency CAN not do. It’s original purpose is to neuter the banks. Cut their dicks off so that they can NOT screw the mass. We do NOT need bank account to trade stuff. What we trade, nobody knows and nobody tax us. If the .gov wants to cripple me by freezing my asset, they can NOT do it. If the lenders fucked up, there will be NO bailouts because there is NO central banks to print BTC. Sure, nobody can lend recklessly as well because there is NO BTC printer. YES, this is revolution after the smart ones knew how banks and .gov fucked everybody in 2008. The trust was lost and BTC was born. If you want your 250K to be “protected”
by the banks and .gov, just remember that you are their sheep and they can fleece you at any moment. Do you want “protection” or do you want power in your own hand? that’s up to different people’s nature. Are you sheep or are you dogs?

Game 2: The mass sheep always wants to transfer other sheep’s $ into their own pocket. BTC become such an vehicle. Sheeple wants $ as much as sheep wants food. they donNOT care they are fed and they will get fleeced by the masters. They just compete with each other. Then BTC come in as the emperor’s clothes. All the sheeple praise the BTC and everybody is excited and happy and okay the game until the girl shouts “the emperor has NO clothes” AKA “BTC has no military or police violence power backing”. Then the sheeple will turn 180.

The bankers know the true threat is game 1, so they distract the sheeple with game 2. Let the sheeple get burnt by the BTC “bubble” give it a bad name, so sheeple will NEVER even realized the perspective of Game 1.

You are being played.