Why I'm Putting All My Savings into Bitcoin (2011)

Bitcoin has aggravated the "layman talks out his ass about economics" problem again. 1. Gold is a proof of work system just like bitcoin. When someone accepts gold as payment for some other commodity or service they are doing so under the assumption that the value will be stable because it takes at least X amount of time/labor/ingenuity/money to "create" more gold by mining it. This is what backs non-consumption commodities. 2. Fiat currencies ARE backed. They are just usually…

Whenever i see articles with titles like this I'm reminded that a common practice in the financial world is to encourage the general investing public to buy something we wish to have hyped, to create the next level of buyers to buy us OUT of a product we wish to divest from, as we see a peak and trough in the near future...

His arguments for investing in it in 2011 made sense but in 2020 they no longer do. - Past performance has plateaued for years. - Use cases are niche instead of regular transactions. - Since the use cases are niche there is few uptake drivers.

While this is merely an anecdote, this past week I overheard a barber discussing bitcoin and how "you have to get in on it". Such discussion can be indicative of a bubble approaching maximum capacity.