Why Warren Buffett Calls Bitcoin Real Bubble
The only thing people knows the best except “It is groundbreaking ” is its volatility. This turned Bitcoin from a technology from future to an upstart fantasy. Warren Buffett has expressed his thoughts on Bitcoin and quote"You can’t value bitcoin because it’s not a value-producing asset." “real bubble in that sort of thing.”
Bitcoin is a cryptocurrency as well as a new technology. Gold is physically existed, and can't high-efficiency out of thin air, thus it has scarcity. But for Bitcoin, as a virtue currency, it is possible to create more of it. Like ICO before, this is a test put on nature of human. Especially when Bitcoin can't be governed by some kind of law of authority.
Bitcoin is only virtually existed, it's operation is the same. But it seems not a single one of those investors care about that. The only thing kept the price of Bitcoin go crazy is simple because more and more investors afraid of lost their chance of making fast buck.
Joe Lubin, co-founder of Etherum said " When you get enough people believing in cryptocurrency, then you can snowballed into something that a society deems valuable. Like U.S. dollar, the U.S. dollar is based on faith in the system." But actually, U.S. dollar is supervised by law and society, it has credibility. Also, the cash flow of cryptocurrency comes from investors' traditional currency.
When you combining a revolutionary technology with human's nature of greediness, you get a 100% pure investing means. Our identity has changed, most of us no longer care about Blockchain‘s development. This is not how Satoshi Nakamoto designed it as “A Peer-to-Peer Electronic Cash System”. Bitcoin is designed for payment, not investment．
Co-Founder of Dogecoin Jackson Palmer said:" When you see price charts go up and to the right exponentially, ultimately, it can be a sign of bubble. People are gonna lose a bunch of money."
During the constant debate, a great number of Forks was born, this is called IFO. The most famous Forks are Bitcoin Cash(BCH), Bitcoin Glod(BTG) and BitcoinX(BCX)
BCH is the very first fork of Bitcoin. Roger Ver kept provoking the community by supporting disputed forks. For the other partner named Calvin Arye is a billionaire, built an online gambling and entertainment empire. With the identity of these two gentlemen has made BCH‘s motives unclear.
BCH is operated by 7 different teams by competition, and the official of BCH said that anyone or any team can make contribution to BCH is welcome to join. This could cause major divergence for BCH.
Also, BCH has sacrificed decentralization to promote transaction speed. Founder of Litecoin assailed BCH as“PayPal 2.0”. But this doesn't stop Roger ver from promoting BCH.
Bitcoin Glod is lead by a mining company named LightningASIC. But BTG doesn't solve the scaling problem at all. The block size is the same 1M. The only change in the formula is GPU mining is supported. Meanwhile no replay protection and highly unstable EDA difficulty adjustment algorithm. BTG only trying to decentralize mining.
BCX is nothing like other Forks. Firstly, the team is completely anonymous, this means the team behind BCX is not looking for become famous for it or trying to benefit from it. This is why BCX is so unique compared to BCH or BTG. According to their official website, Team BCX only wants to"Fulfill Satoshi Nakamoto's vision without any compromises."
Judging from the features, BCX provided the most comprehensive features among other Bitcoin forks. Block size is 2M instead of BCH’s 8M to solve the orphan blocks. DAA difficulty adjustment algorithm, zero knowledge, unique address format, replay protection is all supported.
The most importantly is that BCX supports smart contract. Their Team introduced about how they implement it. BCX will build a high efficiency system for digital assets circulation. Also, BCX supports different kinds of applications like payment, gaming, supply chain, IoT and more. This means BCX is really aiming at helping to decentralize traditional industries.
When it comes to choosing between ideal and profit, most will choose profit over ideal, this also applies to Bitcoin community sadly. But it is good to know that there is still someone fighting purely for their belief lie Team BCX. For now, we need to wait for BCX mainnet go live on January 15, 2018.