It's more of a currency devaluation.
Bitcoin is not a fiat currency.
It costs over $1000 in electricity and computing costs to make a bitcoin.
The value of Bitcoin is not speculative.
It is linked to the number of users, and the number of transactions.
As the Bitcoin network grows, the value of Bitcoin grows.
Bitcoin’s rise in value is amplified by the devaluation of national currencies.
As people move into Bitcoin for payments and receipts, they stop using US dollars, Euros, Chinese Yuan, which in the long term devalues these currencies.
What you're seeing is more of a currency devaluation than a bubble in Bitcoin.
Bitcoin is not something that we're pulling out of thin air.
Bitcoin is something that is created with massive amounts of electricity and computing power.
Temporary fluctuations are meaningless.
Temporary fluctuations are created by speculators, people who do not understand the fundamental technology of the Blockchain.
Those who do, know that in the long term these fluctuations will make no difference.
Blockchain will take over all aspects of the financial system.
Blockchain does everything from fixing supply chain problems in corporations to verifying the authenticity of the sender and receiver in a financial transaction.
Bitcoin and the Blockchain are not owned by any person, company, or consortium.
They are strictly mathematical formulas that nobody owns which we are all participating in.
The advantage to using Bitcoin? It’s instantaneous.
A Bitcoin transfer it takes 30 seconds.
A wire transfer, however, takes 24 hours.
Most of this information is sourced from an interview with John McAfee on RT.
I have transcribed the interview below.
Transcription below
John McAfee "Bitcoin is Not a Bubble" August 2017
Interview on RT, 2017
Video available at:
Stop me if you've heard this before:
Bitcoin broke another record.
Thursday the digital currency topped $4,500 in trading, which means it's doubled in price in the past month alone.
That's huge.
And since the concept of
cryptocurrency is still so new, many
people see growth like this and want to
compare it to a fiat currency, wondering
when the bubble might burst.
Cybersecurity expert John McAfee says
this type of thinking is a mistake.
He joins [RT] now .
RT: “John why do you think the
word bubble cannot be applied to Bitcoin?”
JM: “Well first and foremost, bitcoin is not a
fiat currency. It costs over a thousand
dollars to create a Bitcoin today, in
electricity and computing costs.
Second, the value of Bitcoin is is linked to the
number of users, and the number of
transactions. It is not a speculative investment even
though it is being used as such by many
people.
As the Bitcoin network grows, the
value of Bitcoin grows.
As people move into Bitcoin for payments and receipts,
they stop using US dollars, Euros, Chinese
Yuan, which in the long term devalues
these currencies.
So what you're seeing
is more of a currency devaluation than a
bubble in Bitcoin. As more people use it,
it has more intrinsic value. And again,
the cost of producing a Bitcoin
increases with the value of the Bitcoin.
So this is not something that we're
pulling out of thin air. This is
something that's created with massive
amounts of electricity and computing
power.”
RT: “Someone who disagrees with
you on the term of bubble, when it comes
to Bitcoin, is Mark Cuban.
Back in June he tweeted:
“I think it's a
bubble. I just don't know when or how
much it corrects. When everyone is
bragging about how easy they are making $=bubble”
... When he tweeted that, Bitcoin
dipped in price.
How can one person's random Twitter
thread have that effect on the price, and
what does it say about Bitcoin’s stability?”
JM: “It says nothing about the Bitcoin’s stability.
After it dropped five hundred
dollars, it's now at [$4400] so these
temporary fluctuations are meaningless.
[They] are created by speculators, people who do
not understand the fundamental
technology of the Blockchain.
Those who do, know that
in the long term these
fluctuations will make no difference.
The more people who use Bitcoin the more
valuable it will become. This is the only
metric we can use.”
RT: “Now Bitcoin and Blockchain go hand in hand, but
Blockchain [has the] ability to
track financial transactions in a way that is incorruptible.
[This] gives it infinite amount of uses outside of
the original purpose of using it for Bitcoin.
Do you see Blockchains
overtaking certain aspects of the
financial system as we know it now?”
JM: “It will take over all aspects.
People think that Bitcoin or the blockchain is owned
by someone, by a company, or by a
consortium.
No.
This is strictly a
mathematical formula that nobody owns
that we are all participating in. We
use the Blockchain for everything from
fixing supply chain problems in corporations to verifying the
authenticity of the sender and receiver
in a financial transaction. It is the
most powerful technology that the world
has seen, I believe, since the invention
of agriculture.”
RT: “Now John, we've showed our
viewers Bitcoin’s rise just in the past month… , on July 17th, one
month ago, you tweeted that
“Bitcoin’s low
of $1800 yesterday simply
could not be maintained in the long term.
Bitcoin moves above $500,000 within three
Years. bets?” you ask.
So I ask you John, do you stand by your statement?”
JM: “Keep in mind, as Bitcoin grows, and grows in value,
other countries’ national currencies are
going to decline.
The advantage to using Bitcoin?
The advantages are huge.
If I do a wire transfer it'll take me 24
hours, if I do a Bitcoin transfer it
takes me 30 seconds. It is instantaneous.
I know people who do not use any other
currency now, other than Bitcoin. They buy
their houses, their cars, everything, using
Bitcoin, by connecting to other users who
sell the things that they need. As more
and more people use this what will
happen to national currencies? They will
obviously devalue. They have to. So that
500,000 includes a massive devaluation
in the US dollar which absolutely has to
come if Bitcoin continues to grow at its
current rate.”
RT: “Well it's certainly a
community effort [for] the Bitcoin
community, and for other cryptocurrencies
it's only growing. John McAfee, founder of
McAfee incorporated, thank you so much
for your thoughts today.”
Video available at:
