Never really been an investor. Probably because I never really had disposable income. I guess somewhere along the line I equated investing with gambling. If you’re not willing to lose, then you shouldn’t play the game. I took the same approach to Bitcoin. I dabbled a little back in 2013 to 2014. I was mining, creating websites to monitor trading, and even a little trading from the Litecoin that I mined. That was the extent of it. Nearly five years later I am checking back in and have a few observations. I would like to say an unbiased opinion, but there is no such thing.
Nearly all the posts I see about bitcoin and cryptocurrency (cryptoassets) are people painting it in a positive light. For good reason: They own it. It’s the same reason that the media is always putting a positive spin on the economy and Wall Street. Its in the interest of the people who control and profit from it. Crypto is just an asset class. It needs positive spin to be successful. It’s a self-fulfilling prophecy.
The funny part is the unit of measure they all use for the value of their Crypto, the “almighty dollar”. The thing that gives Bitcoin assets a tracible value is the US dollar. Its funny (ironic) because you might own 3 Bitcoin, but they must be converted to your local government fiat to have value. Make no mistake, this is why government has not squashed Crypto. It poses no threat to government issued currency, and adopters of crypto as a currency are subject to capital gains tax on every transaction. Its another revenue stream for the government to steal more money in the form of tax. Governments profit from Crypto. If you think you can hide, good luck.
I was reading some comments on one of my favorite Anarchist FB pages today, and someone was trying to legitimize Crypto because governments support it now (ala Crypto Valley). More irony… Anarchists using government as a litmus test to validate their beliefs. “See they can’t beat it so they are joining it”. Nope they can beat it the same way they beat everything else that stands in their way. Demonize it and make it illegal. If it ever poses a real threat you can bet your ass that some fucking terrorist group or boogie-man-of-the-week purported to be using Crypto to fund terrorism will be the reason it’s banned. Remember, if you can’t convert it to dollars, does it have any value?
Somethings hurt my brain to think about, so I will just leave them here to be considered.
If the market cap of Bitcoin is currently $400 billion, did that increase the money supply by $400 billion? Are we creating inflation (devalue the dollar) with some form of decentralized quantitive easing by creating Crypto? I mean this new “value” was just created out of thin air.
If governments crumble and Bitcoin becomes currency, are the early adopters of Bitcoin the 1% of the future?
