RE: Why Bitcoin is Perfect for Most First-Time Investors

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Why Bitcoin is Perfect for Most First-Time Investors

in bitcoin •  7 years ago 

I always love to watch your videos and your insight, even though I frequently disagree with you LOL...

This was a good video, but I don’t understand, with your continual talk of a bubble, that you never mention that less than .5% of all people are involved in crypto currency worldwide, and in the US it’s still less than 1%... as Amazon, eBay, and more companies that continue to except crypto currency as a form of payment continue to adopt crypto currency, the user base will likely increase to 10% within the next few years, likely bringing at least a 10-20 times gain into the total market capitalization. And I believe in my lifetime, within the next 30+ years, that number will increase to 75% of all worldwide people using CryptoCurrency.

Another thing to put into perspective, with the total current market capitalization being around $500 billion, that is only 1/3 of Google stock market capitalization, just one company. From my perspective, this is far from a bubble. Also, not to mention this week, that the total market capitalization literally dropped by 1/2, from $840, billion-$420 billion.... it seems fair to say that the Bible has just popped, and the market capitalization will likely be well into the trillions of dollars by year end.

So why so much continual talk of a bubble? Seriously, listening to your videos totally freaks people out. It’s like you have a thing for spreading fear, and doubt, like you kind of get off by freaking people out or something LOL . But at the end of the day, there is little doubt in my mind that crypto currency will continue to surge ahead full force, even though there are many setbacks along the way with corruption, Financial institutions, and governments trying to tear it down. So no need to freak people out. These are mear setbacks, not bubbles. When people hear the term bubble, I guess it has different insinuations to different people. I personally do not like the term bubble in reference to the crypto market these days, even though we might be saying the same thing. (Bubble vs. setbacks)

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so well explained, my opinions also like @gamblegrady :

I always love to watch your videos and your insight, even though I frequently disagree with you LOL...

it is always good to listen several sides of the "problem", makes me think twice before acting, in a way cools down my hype, just a little hehehe, I am not able to be more racional than emotional on crypto, as in many other fields of life. So in a way I do follow @cryptovestor because his opinions somehow negative cools my thought process and acting urges down a little, and I guess this is importante and desired to make decisions a little bit more racional than I am used to take.
Thank you :D

Yes! I totally agree! I am with you... that is why I always watch his videos also, but I am careful to take it with a grain of salt...

You make some valid points. Cryptovester also makes some valid points. The problem is how to weigh these. Our brains are naturally unfit to understand these reasons in the right way. Maybe a bias like the spotlight effect occurs.

Algorithms are far better in understanding and weighing these effect. This is the reason in some markets(which are not too complex), human traders have no edge and can not beat the cost of trading. Since bitconnect is so low right now, I am buying a lot! ;)

Good point, lol how did the bitconnect trade go?

Those numbers aren't small though on an absolute basis. Most companies are only accepting Bitcoin as a marketing ploy (e.g: look at how much KFC Canada rode that train). I don't know that the world is going to adopt a new system they hardly understand for benefits many hardly care about. More realistically, it will be a group of us who care for avoiding financial surveillance and having control of our finances that want to participate in this ecosystem.

Unless Bitcoin and other cryptocurrencies can be made simpler and better than existing solutions (which will be difficult to near impossible given capital going into these), then likely many people won't adopt it because they don't care about control of their information (they say they do, but they really don't).

Furthermore, the tech behind these cryptocurrencies are still in their infancy yet are being priced as though it has been fully developed. Even respected figures within the field agree it's a bubble because of the mass euphoria and speculation that the masses are participating in for the objective of becoming wealthy. My comments about a bubble aren't a shot at cryptocurrencies, but rather an observation of human nature which has repeated itself since the dawn of time.

  ·  7 years ago (edited)

In the beginning days of the Internet, it was not easy to use. One had to have a computer modem, and dial into a local university to login to a text-based interface and run commands to access handful of text-based resources. The idea of email was a curiosity at best to the people I explained it to in the early 90's. Many people were of the opinion that this whole "computer thing" was a fad that would go away.

My point is that technology evolves, and cryptocurrency will likely one day be as easy to use as web browsing is today, or will be entirely transparent to the user. The rapid rise of crypto-backed debit cards is one example of transparency. When nations release their own national cryptocurrencies, as a few have announced they will, and people are earning their salaries with crypto, the payments landscape will be different.

There is also the whole machine-use dimension of this technology - autonomous vehicles that operate by themselves accepting cryptocurrency from the humans it gives rides to, which it then uses for charge-ups and maintenance, for example. Our new programmable money need not be used only by persons. The entire Internet of Things movement will play a big role in the evolution of cryptocurrency (IOTA, I'm looking at you).

Not to mention the emergence of artificial intelligence and its integration with crypto/distributed networks through projects like SingularityNet. And Virtual Reality and the various distributed platforms being designed.

So I'm not sure about whether the seemingly exuberant pricing is all that irrational. Most technology stocks are also trading in multiples of their fundamental valuations, because traders are looking ahead to their future potential. We have a loooong way to go with the implementation of p2p cryptographic network technology, but there are tens of trillions of dollars currently invested in other asset classes, institutional funds, etc., available for investing in the emerging new technological infrastructure. I like one commenter's idea that the stock market is a giant bubble, and cryptocurrency is the pin.

Very well said!

Good points! But let’s say the total market cap goes over $10 trillion by the end of 2018 (which I think will likely happen) would you still look back to this point in time where it is currently around $500 billion and call it a bubble?

Would you look back a year ago when it was at $17 billion total market cap and call it a bubble then?

Just look at the mass adoption taking place.... ie #1 app downloads, 350k people signing up for binance in less than 2 hours, hundreds of new ICO’s popping up, etc.... everything is moving so fast, I never thought this type of adoption would come so quick! But with that being said, STILL LESS THAN 1% adoption!!!! Their will be so much more money flooding in this year, I think beyond what we can imagine! And the tech as well as the tech adoption is all moving much quicker than I thought it ever would. This is where ripple and their CEO are playing a vital role in help the mass adoption along. He does a good job representing crypto to the masses and works very hard. It make it more palitable for the older generations to receive the concept of crypto.

Yes, lots of set backs for sure! But I just look at them as setbacks, not bubbles.... From my view, the term bubble has such a negative connotation....