Sure, and that gives something value. It doesnāt make it a store of value though. There is no guarantee against depreciation and it is too unstable. Bitcoin canāt be a store of value. Iād sooner use stocks as a store of value over Bitcoin, despite those not being a store of value either!
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well just like you think a rare painting has no value, or a rare coin. other people do. 100 million people estimated own bitcoin so there are people buying and accepting this āthingā bitcoin and buying it for $20,000. if you donāt agree with the āthingā that they are buying and think itās worthless (like the rare painting) thatās cool. but other people do.
Art is an interesting one which is why itās so popular for laundering and under such serious scrutiny from regulators.
Though you hit the nail on the head there with the word ārareā. Itās that scarcity which is partly responsible for the value when it comes to art or relics. Bitcoin does have a limited supply, but if 100 million people own some, itās not entirely rare.
And yes this is entirely it. I donāt agree as there is literally no reason whatsoever for Bitcoin to be valued as high as it is. Itās already been discussed above and on another thread as to why it has no intrinsic value and why its utility is basically void and unnecessary. I havenāt heard a single argument to say why I should invest. Iāve been asking for some but nobody has provided!
Bitcoin is great for making some quick profit which is the aim of the game, but the latecomers who are hoping to invest in it long term are in for a serious surprise.
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Well only about 1.3% of the world own bitcoin so you could call it rare. Bitcoin could be worth $5 or $100,000 in the future, its impossible to place a value, and no-one can give you a reason to buy except for something like: āit might be worth more in the future as more masses come into the space to buy it and it becomes more rare - but it might notā , itās a pure speculation play, but that is what speculation is all about, hoping that things will be worth more in the future based on not much with very high risk so only allocating money you can afford to lose to it makes sense.
Therefore you agree it is not a store of value. You canāt be a store of value AND a speculation play. Another user was saying that Bitcoin is a store of value yet said some analysts were giving the future price at $0. Again, you canāt be a store of value AND depreciate.
And itās already been determined that its utility in transferring wealth is not useful as itās too volatile; the utility is unnecessary and will become moro-so as banks provide instant transfers with stable currency on or off blockchain; and itās self propelling and fuelled (i.e. Bitcoin has the ability to be transferred on the Bitcoin network vs gold which has value in technology components).
So really, I rest my case. It seems there is literally no reason to invest unless anybody can provide some. And note that hype is not a reason to invest. As with the Dutch and tulips in the 17th Century, this will end badly for those newcomers! To the people who rode the wave up this far, fair play, they made some cash for literally no apparent reason. Thatās gambling and riding hype however, not rational investing.
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I would argue that gold is not a store of value either and is speculation too, you can find articles on this and Iām not the only one with that thought, buy a lump of metal? whatās itās use? how to value it etc?
Well see with gold, itās in the computer or phone youāre typing and reading these messages on. Itās needed for society to function. I mean, yeah, go ahead and remove all tech which uses precious metals and I might also say it has no real value apart from being scarce. But that is not the case.
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ok gold has some real world uses but doesnāt explain why the price is up and down by thousands. bitcoin is speculative like gold and a store of value like gold, itās viewed differently by different people, (some see as currency, others store of value, some speculation) , I see putting money into either has a lot of similarities but one with more risk as itās newer thatās all. $5k in gold today will be worth what in a year? no-one has a clue. same with bitcoin.
Take a read here. The reason that happens is because gold and precious metals are so intrinsic to our society, they are driven by economic forces that control all products, commodities, and services. It will fluctuate, but wonāt depreciate
The same canāt be said for Bitcoin however. That is a total black hole!
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yes gold might not depreciate but bitcoin might not either, itās too new to judge it hence the higher risk of a new non-correlated asset class. Also I would say if you asked 10 people on the street if they would pick bitcoin or gold to put their money it would be a close call between them rather than a gold clean sweep.
Iād agree with that! Iād have no problem with that either. Even if the 10 people chose Bitcoin over gold. Nor would I have any problem with people making money off Bitcoin. More power to them if they do!
My point is merely that it has no utility or store of value so cannot be considered a logical or sensible investment. Itās gambling. If people are comfortable with that, thatās cool. Iām not however, and have never nor will ever hold it long term! Likely a few days to make some cash is all.
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Serious question, why do you think that big institutional investors are heavily jumping in on Bitcoin?
Part of the the current rally is exactly about how big those companies are getting in.
There is nothing new about big institutions buying Bitcoin. I do agree, that is partly responsible for the rally. Theyāre in it to make cash though and I doubt theyāre looking long term. If they are, they likely have set aside some money for pure speculation plays, which is fine.
Which brings me back to my point, Bitcoin is pure speculation and gambling, not a rational and sensible investment.
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Well, the kind of companies and the amount that they are buying, that is very new in the market.
But Iām not arguing about your view, just about this specific topic 
I must do some more reading on this and see who and why theyāve invested - I might get more insight. I really have nothing against Bitcoin as it might seem and would love to have my mind changed. And I really want everybody to make money and if people who invest in it do so, Iām delighted for them. My point is just there is no justifiable rational to do-so from my research; but again, Iām open to my mind being changed!
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For many many people, Bitcoin is not about making money, itās the only way that they have to protect themselves against the government and economic situation that are destroying multiple countries around the world.
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I totally appreciate that. I really do! I do like the concept of Bitcoin and blockchain is fantastic!
Though if itās not about making money, my point still stands that itās not really an investment opportunity.
On that note, I do agree with Musk that the Mars economy will be run on blockchain. It really should!
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Itās a hedge against currency inflation thatās all, gold has been the measured source for income before actual money came into the equation. It was even used to calculate the economy worth of a country so fairly significant.
If anything currency is the only source that has no actual value, and history has been fairly successful in proving it.
My advice buy gold over holding cash, crypto is here for the long haul so may aswell hold some of that too. The only thing I donāt recommend anyone holding for the foreseeable future is cash
I have an overly-simplified version of this I tell people.
Scenario A: Itās 1960, John manages to save 6 months of his salary, Ā£3000. 50 years later, John retires and remembers he has 6 months worth of cash and is delighted! Only to find that Ā£3000 is only enough to get him through a few weeks. John is not happy.
Scenario B: Itās 1960, John manages to save 6 months of his salary, Ā£3000. He buys 3k worth of gold. 50 years later, John retires and remembers he has 6 months salary worth of gold and is delighted! He sells the gold for 20,000. John now has 6 months worth of money. John is happy.
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