I’m really amused when in 2017 people still have no clue about it.
– It’s just a Ponzi scheme
– It’s a bubble
– It doesn’t have intrinsic value
– I can’t afford to buy it now
and the best:
– Wow then you must be rich!
and I’ll leave this for later:
– Criminals use it!
Let’s start from the first one:
A Ponzi scheme denominator is that initial investors are paid with the money from the new investors.
For Bitcoin it is true in a form. There is no Mr.Ponzi. Satoshi Nakamoto is a mere pseudonym of who wrote down the rules along what Bitcoin works (aka the Blockchain). If he dares move one of the first mined bitcoins, we would all know. We know those initial blocks mined by him and we would detect a movement. I personally don’t know if the market would panic and crash or if it would gain more confidence and attract even more investors. So no, no Ponzi scheme.
It’s a bubble. Really? Well, it’s a bubble that went from zero to 3800€ worth (more or less, today). And I think it’s not stopping. The best recommendation I ever had was from L. who told me to never place in Bitcoin more than what I could afford to lose. It was worth 35€ when he told me this.
On the next point, I have to agree. Bitcoin doesn’t have any intrinsic value. Nor does a Van Gogh or a Picasso. It’s just paint. We, humans, assign a price to these masterpieces. Same we do with Bitcoin.
Yes, you can afford it now. Why? Because Bitcoin is a unit but it has 8 zeros after the comma. The smallest unit, in honor of the inventor, is called a satoshi and is a 0.00000001 of a Bitcoin or, today, 0.000038€. I bet you can get more than few satoshis with the small change between the pillows of your sofa.
Witch bring us to me. I’m not rich. Selling my investment today wouldn’t grant me to buy the apartment I live in. But here is the thing, I’m not selling. No no.
For the last one, I’ll leave you this link:
Be safe out there!