Headlines that bitcoin has gone to $6000 is incredible. Pundits are even calling for $10,000 and to the moon. I am not a big investor in bitcoin because I am lesss into speculation and more into toilet paper (no not the dollar; actual toilet paper); real assets in other words.
I let me explain:
Here is a chart from a few years ago comparing gold vs bitcoin:
We can see the BTC value has surpassed gold for many different reasons. Hot money has flown into bitcoin and made gold look like a shitty investment. Well first off, gold is not an investment it is an asset (it’s not meant for investing).
There are even charts comparing the two which to me are very misleading:
Bitcoin is an avenue to get away from central bank control, as is gold. Gold is manipulated due to the “paper” gold futures. To me paper gold or COMEX gold is not something you have on hand.
If you want to speculate in a controlled market, then you go to the comex. Big institutional buyers change the price at their own whim, and believe me if bitcoin has the same players, the price will be effected as well. In other words if big players who have the money to buy most or all bitcoins can effect the price as well.
In terms of “real money” bitcoin is, and it is not. Due to the reliance on ENERGY (forget the internet for now), physical gold has bitcoin beaten, and it will always be that way. This is the real prime example:
Pictured is Puerto Rico. I read a great blog from @goldenarms and it basically spelled out the scenario where bitcoin is worthless (even more so than cash).
As much as we like to pump bitcoin, it’s reliance on technology and energy make it less likely to be used as money in any emergency. Unless it is
more widely adopted it will never replace cash or even gold.
The psychology is just not even there. When I can go to a local food stand and trade bitcoin for food, then I would say it is more mainstream. Yes I know Japan has made it widely available for use, but many other countries are doing the opposite.
Face facts:
Bitcoin is still relatively new and most people still know nothing about it. Explain electronic wallets how to pay etc..
Gold however will always be traded for something. If there exists a psychological belief that something has worth then it will automatically be worth something. So gold automatically beats BTC in this regard (on mass).
In the event of emergencies or needing something of worth, assets (even toilet paper), will in the end be worth more than gold. Bitcoin would be laughable to trade with (and always will be). We are in a physical world where we need physical things. Perhaps if we ourselves were in a complete virtual world it would be our main currency. This is never going to happen.. because we are physical beings.
So enjoy your profits speculating.. people
make money that way everyday. Bitcoin could go to $10,000-$100,000 thousand, but at the end of the day if you don’t physically own it and can’t trade it without electricity or the internet it is worthless (at the end of the day).
I’m not saying this out of jealousy (although I wish I bought BTC at $5.00). I say this is it of complete logic.
In the event of emergency people would rather trade toilet paper for food. Wealth is only determined by the needs of the moment. Since we live in a relatively artificial world, things that don’t have intrinsic value physically can be made to “look” like they have value.
Just be honest with yourself and view the human experience physically. False Gds are generally things we put faith into that have no real value. We do this with many things in life (including gold, and cash).
Be true to yourself and to others. We need physical things and even if BTC went to $10,000 we would still need to use it to buy something physical.
