What Bitcoin "Deserves"

From the Slope of Hope: I will preface this by saying I don't have a dog in this fight. Whether Bitcoin plummets to its intrinsic value of $0.00 and makes people look like idiots, or whether it goes to a trillion dollars per Bitcoin, it doesn't matter to me. But I want to point out something I find just.......weird.

The press (and, in particular, Bitcoin fanboyz) seem obsessed with the notion that the market cap, so to speak, of Bitcoin is DESTINED to ascend to some higher level. We see diagrams like this:

This is as if to say that Bitcoin "deserves" to be as big as........well......typically, all the gold in the world. I have no earthly idea where this notion came from. Bitcoin no more deserves to be as worth as much as all the gold in the world as I deserve to have the same net worth as Mark Zuckerberg. It doesn't make any sense.

And I saw this just yesterday:

We are here? Are you serious? Or are you simply inhaling a substantial amount of the marijuana that's going to be legal in California in just a couple of weeks.

My hand to God. The human race has lost your mind. I think I'll return to my home planet.

Comments

ultraticum Supafly Sat, 12/16/2017 - 16:27 Permalink

What Bitcoin "deserves", expecially from the ZH readership, is some recognition of its inherent value: - Open Source Code (no government spooks need apply - they would be outed as such in an instant) - Uncensorable - Peer to peer - Permissionless - no KYC/AML, which are euphemisms for authoritarianism - Limited in supply - Transferrable anywhere - Voluntary  - Represented entirely in code, which is nothing more than "speech", which is highly unlikely to be curtailed to the degree necessary to stop its use.In short, money-jobber financial trader pundits, PLEASE don't start spouting off on price, bubbles, etc. until/unless you have shown you understand those inherent quailities.  Start with a brief historical overview of the number of failed fiat currencies, and some learning of how the US FRN is actually created and who creates it.  Because when you start to understand Bictoin's game-chancing utility - you begin to not give a shit about the Muppets' price charts.Ultra

In reply to by Supafly

maxblockm ultraticum Sat, 12/16/2017 - 19:44 Permalink

The author and everyone else needs to become aware that there is no such thing as inherent value.There are inherent properties, but value is always relative to what people can think of to do with those properties, and different people are coming up with different ideas all the time, so value changes, while properties do not, except perhaps for Bitcoin, since it's protocol can be rewritten with a hard fork.

In reply to by ultraticum

SILVERGEDDON Kina Sat, 12/16/2017 - 21:22 Permalink

Speak for yourself, Tim Knight aka ass hat. I KNOW I deserve to score Suckerburg and Bezos net worth combined. I would have a fucking field day putting together an awesome tem million acre home base, and having the best fucking Forth of July fireworks display every year. Sarc arc arc arc.  

In reply to by Kina

quesnay Sat, 12/16/2017 - 00:54 Permalink

I love the implication by some that bitcoin should be worth the same as all US technology combined. Gee, why stop there ...At the peak of Japan's real-estate bubble decades ago now, Tokyo was 'worth' more than all of California. So on paper, I guess anything can happen temporarily.

Citxmech quesnay Sat, 12/16/2017 - 12:36 Permalink

"We are here? Are you serious?"Yeah.  I thought the same thing.  My personal thought is that this train is moving much faster than the tech bubble.  If we are going to see a giant correction like the tech crash, I don't think it will be 10+ years out at the rate we're going.

In reply to by quesnay

erk Sat, 12/16/2017 - 07:58 Permalink

Notice that everything in the article is valued in inflated fiat derivatives that is loosing value every minute. Shows where the authors head is at. 1 x Bitcoin = 1 x Bitcoin and that's all you need to know, that will hardly change over the next 100 years.1 x $Dollar (2017) = 0.05 x $Dollar (1917)

Mustafa Kemal Sat, 12/16/2017 - 09:17 Permalink

I like read anti bitcoin articles:" will preface this by saying I don't have a dog in this fight. Whether Bitcoin plummets to its intrinsic value of $0.00 a"But if you dont have a dog in this fight, why do you begin with a loaded sentence? 

fx cheech_wizard Sat, 12/16/2017 - 18:43 Permalink

I listened to McAfee's arguments as to why BTc should reach 100k and more. Hoping for some substantial case that he might argue, all I heard was that, basically, the $ (and Euro etc) will heavily devalue against BTC. So that was his argument for expklaining his prediction! Whoa?!

It's like arguing in the first decade of this century that house prices would rise by another 1,000 %, because the $ would devalue against homes.

What a boatload of bs. So gold will also heavily devalue against BTC? Or will it explode in lockstep?
John Mcafee might be a nice person and really great at tech, but he really has no clue about financial matters and financial markets.

Now; I am long a few cryptos but I have yet to come across a single substantiated argument, underscored with hard facts and numbers, as to why any cryptocoin should be worth amount x.

In reply to by cheech_wizard

headhunt Sat, 12/16/2017 - 08:52 Permalink

At least the government has some sort of assets and long term potential, this digital 'coin' is backed by an electrical outlet a computer and a digital 'miner'.Bridge for sale... Brooklyn Bridge for sale...!

zerocash Sat, 12/16/2017 - 09:07 Permalink

There are only 20,279,223 bitcoin addresses that have more than $1 worth of bitcoin in them. Considering that many bitcoiners have multiple bitcoin addresses with a dollar or more in them. (disclaimer: I have more than 10 with a lot more dan a dollar) you can't say that bitcoin is in a bubble due to mass adoption. Surely the shoeshine boy tells you to buy bitcoin because he heard about it on TV but chances are that he doesn't have any himself.https://bitinfocharts.com/top-100-richest-bitcoin-addresses.htmlMy guess is there are less than 1 million people who have serious amounts of money in bitcoin. So there should be a huge potential for it to go up. 

Citxmech Bendromeda Strain Sat, 12/16/2017 - 12:47 Permalink

For there to be "mass adoption" or a "rush for the entrance," the tech/interfaces are going to need to get a whole lot better than they are now.Right now, the systems are getting better, but they are still clumsy and kind of a PITA.I do like the decentralized nature where I don't need a learned intermediary (i.e. a broker) to do all the busy work for a cut, but I can't really see Ma and Pa Kettle doing much until the bugs are worked-out of the entry points.A bank transfer on Coinbase takes f'n 12 days?  Really?  Credit card purchases have a weekly limit far below the limit of the card?  Unless the Asian/European markets have a WAY better entry system than is available in the US, given the % increases we're seeing, there must be an absolute log jam trying to get into this stuff right now. 

In reply to by Bendromeda Strain

Yellow_Snow Sat, 12/16/2017 - 09:30 Permalink

Well actually this is a bullish article...  Just have to look at the underlying aspects of it...Yes, as several have already pointed out, the illiterate author is a buffoon...But he is also a great contrarion idicator, when idiots like this get behind BTC - it's time to sell  !!!The 'You are Here' charts show the upside potential and are quite Bullish as-well...