Stop Treating Bitcoin Like A Stock

Authored by Jordan Stephens via Hackernoon.com,

It’s not.

I don’t know about you, but I’ve never felt so compelled to drink in my life than the past week watching Bitcoin. It’s like watching a paper airplane bounce in the wind that could either nosedive any moment or catch another swift gust upward.

I get it. It looks like a really volatile stock ripe for quick profit or financial demise at the roll of some dice, and if we keep treating it this way, that’s exactly how it will remain.

Investing in stock drives the production of better goods and services, but currency isn’t a commodity which will depreciate due to the nature of its own decay. It’s not a service which could lose its public appeal in a few years. Intellectual property is a closer metaphor, but a dollar will still never hold intrinsic value, ironically, unless it is one day viewed as an antique.

The true beauty of currency is that it doesn’t exist corporeally nor have any intrinsic value at all.

Cryptocurrency, by its very nature, cannot accurately represent value if it is perceived as being valuable itself, and as soon as we stop treating it as a means to redistribute wealth in another currency, it can get back to doing its real job?—?facilitating fair and reliably accountable exchange. If that’s not your endgame for participating in it, then you should get out of it entirely because you’re defeating the purpose.

What we’re witnessing in arguably the grandest display in recent history is dissatisfaction with the status quo, and each dollar exchanged is an act of rebellion, a protest, and middle finger to every bank who is “too big to fail.” As the price of bitcoin grows, so does a collective wager that the people can manage our own transactions more reliably than isolated centralized systems with national borders. Its volatile gesticulation is a global negotiation and argument how best to handle our transactions.

Putting money into any cryptocurrency isn’t an investment. It’s a vote.

Will Bitcoin win?

Who knows? It’s literally up to us. If any currency including the dollar crumbles, it’s because consumers lost faith in it, not because it couldn’t sustainably meet some demand. So if you take away one thing from me, let it be this:

Calling Bitcoin a bubble is a self-fulfilling prophecy.

Got a lot of money in it and want to see it grow? Then leave it. If we could all agree on this notion, Bitcoin could be the new global reserve tomorrow, and you’d be doing your shopping not with all the money you’ve made from Bitcoin, but with Bitcoin. Instead of questioning how much of our dollars to exchange, we’d be scrambling to get the rest of it in there. This is the one question you should ask yourself when exchanging fiat value for cryptocurrency: Is this how I’d rather spend my money? If Bitcoin is not your answer to that, don’t buy it.

Bitcoin isn’t the first of its kind, and it’s demonstrably not the last; it’s just the most successful right now, and since popularity is really at the heart of any mass system of exchange, success, in the long run, will be what matters. So since this thing is just getting started, should we trade around? Sure, go for it. Something will inevitably come out on top or else we’ll all be stuck in some purgatorial economic limbo for a long time. This will probably occur when the public is satisfied with the fiat efficiency of managing transactions and the current distribution of wealth, but until then, put your money where your faith is. That way, we wind up with a system we actually want.

If you’re satisfied with dollars, keep your dollars. After all, you already have the advantage of participating in the fiat system. And if you’re looking to make more of them, buy stock generated by dollars, not cryptocurrency because if fiat profit is what you’re after, the mainstream financial analysts are right?—?it’s a terrible and risky investment to take your desired currency out of its participatory system.

Comments

lil dirtball ParticularlySt… Sat, 12/16/2017 - 13:19 Permalink

> What we’re witnessing in arguably the grandest display in recent history is dissatisfaction with the status quo, and each dollar exchanged is an act of rebellion, a protest, and middle finger to every bank who is “too big to fail.”

This is arguably the biggest pile of bullshit I've ever seen.

In reality, the TBTF banks are tapping into human greed to kick-start their new product that we've been hearing about for decades - the cashless, continuously and perpetually tracked digital system.

But let's all continue to believe lies from the elites anyhow - because that's what humans have done for centuries ... why quit now when there's so much m0ney to be made (out of thin fucking air).

In reply to by ParticularlySt…

freedommusic skbull44 Sat, 12/16/2017 - 17:12 Permalink

> Putting money into any cryptocurrency isn’t an investment. It’s a vote.It's a vote for an impartial computer algorithm to control and distribute money instead of human criminals. Plain and simple.The main thing everyone seems to be forgetting here is that money isn't real. It's simply a human belief. Using magic alchemy to store tangible value into paper, digits, or metal is simply a childish game of imagination. It isn't real. None of it is. Just the belief is. The belief only remains relevant when everyone participates and plays the game.Peace 

In reply to by skbull44

TeraByte freedommusic Sat, 12/16/2017 - 19:37 Permalink

How old are you my child, who still believes in innocent impartiality? Lay your trust on similar algorithms, when browsing Google. Computers are always right like their “objective” programmers too. Oh shit, just got an error message “Win 10 latest update just failed to install for a third time, you can schedule a new delivery by clicking this window”.

In reply to by freedommusic

Eager Beaver Mustafa Kemal Sat, 12/16/2017 - 14:50 Permalink

Bitcoin is not a giant fuck you to the (((bankers))), it's a giant vote of no confidence in the system, the biggest ever displayed, short of pitchforks and torches. When the public trust has been violated at every turn, by our politicians, by the regulators, by the bankers, by our monetary systems, by our businesses, by wall street, by our investments, by our capitalists, by our savings and retirement accounts, by those who manipulate gold & silver down at every uptick, by everything, and everyone on the planet, what's a serf to do? People are going into Bitcoin, because in it, they see a decentralized model of trust. Something they own, and they control. Anyone who says differently is either a shill, or an idiot. You're either rude, or stupid, if you don't see what's backing Bitcoin. Trust. Pure and simple. That's all any money ever was. Why do people trust gold? Feathers? Shells? Beads? Worthless fiat paper? Trust that someone else will accept them in exchange for goods and services. And now, that trust has been shattered as it becomes more apparent to us all that the system is rotten to it's core. The entire barrel is full of rotten apples, and this whole fucking mess needs to be chucked into the abyss. We can rise up, and string these grandmother fuckers up by their necks on every lamp post, that'd be a nice fuck you to the (((bankers))). Or, we can choose to be peaceful, cooperative, and collaborative, and instead, simply move our trust to where it belongs; with each other.

In reply to by Mustafa Kemal

oDumbo Eager Beaver Sat, 12/16/2017 - 15:04 Permalink

You're dead right with the trust argument.  That's exactly it, you nailed it.  But your socialist tone does tarnish the legitimacy of the message.  We the people will never be a happy harmonious collection of workers dressed in drab gray, singing songs about our dear leader while we work for peanuts.  Capitalism is human nature, pure and simple.  It is the most natural way to run your life and society. However, when it goes too far, as is the case with central banking today, it does need a bitch slap and that is exactly what crypto currencies are doing.  Power in the middle, not the top (where it is abusive) and not the bottom (where it is destined to fail). 

In reply to by Eager Beaver

Eager Beaver oDumbo Sat, 12/16/2017 - 22:03 Permalink

Ah, a capitalist. No, I’m not a big fan of socialism, sorry to burst your bubble. Something people fail to understand, particularly in the heavily indoctrinated US, is that there are more than two ways to do a thing. This "with us, or against us" mentality that has been programmed into you, is hampering your ability to perceive reality. Capitalism is not human nature, despite what the Jews tell you. It's simply the other side of the socialist coin. The Jew doesn’t understand anything that doesn’t center on money, and so all of their philosophies, both individualism and collectivism, revolve around money. Natural philosophy, the knowledge and study of nature, including human nature, is far more interesting, far more diverse, and far more cooperative than the competitive, dog-eat-dog world that the Jew paints for you.Capitalism is dead. Richard Stallman killed capitalism, but we’re all dancing on its grave. While you capitalists, like Al Gore, take credit for things you didn’t create, the rest of us have been quietly building your world for you for decades now. You don’t even understand how your world works, and yet you not only profit from it, but claim you created it. Capitalism didn’t create the Internet, any more than Al Gore did, but Vint Cerf did, paid for by the department of defense, a DARPA project. I wanted to say paid for by your tax dollars, but in fact, it was paid for by the (((bankers))) who funded their MIC, their loan, with interest, was paid back with your tax dollars.Capitalism didn’t create the World Wide Web, sorry Al, you didn’t either, but Tim Berners-Lee did. In his spare time, as a side project, in his home, for free, because he’s a brilliant, creative, curious person who had a great idea, and wanted to explore the possibilities of interconnecting all information, and to ease people’s pain of document sharing. When Linus Torvalds created the Linux kernel, and Richard Stallman (a giant, self-avowed socialist, and a Jew, of the finest order) created the GNU project, did they do it for profit? No, they wanted it for themselves, and wanted to provide a free, openly available Unix-like platform for everyone to share and use, because the capitalist faggots at Bell Labs demanded extraordinary amounts of money for each copy of Unix. Greedy motherfuckers didn’t care about humanity, or enriching the world, or bringing innovation to the masses, they just wanted to get the Jew bucks.In the years since, many a capitalist has profited from the innovation created by the inventors and idea men. Yes, the inventors are almost always men, and almost always Indo-European. My apologies if I’ve offended the poor, brown, shemale victim class out there. Inventors build things for the love of it, just to see if they can, not for the profit that’s in it. Most inventors are shit at business. Nikola Tesla, great example. As inventors, we expand the body of human knowledge, explore the limits of our technology, and see how far we can take things before they break, almost always to solve real world problems, but sometimes just to see what’s possible. When Satoshi Nakamoto designed Bitcoin, he didn’t do it for the Jew bucks, or the notoriety, he or they, wanted to change the world of money.This began with the micro-finance, and then the crowd-funding movements, enabled directly by the innovation of the Internet, and the ability for average people to instantly connect across great distances. That’s when certain problems began to crop up, when the controllers saw their model of capitalism was being replaced with “Cooperatism”, for lack of a better ‘ism’. People helping people? Investment without oversight? How would they tax capital gains if people just started funding each other, and then paid each other back, without going through an intermediary? The people involved in crowd funding began to get fucked with, by the state, the tax authorities tried to regulate it.See; https://tax.thomsonreuters.com/media-resources/news-media-resources/checkpoint-news/daily-newsstand/irs-examines-tax-treatment-of-crowdfunding/One of the many use cases for crypto-currencies is crowd funding development of all kinds of innovative projects, from art, to technology, to new forms of dirt farming. Crowd funding, in case you capitalists are unaware, is when a group of people just give somebody money, to build something, with no expectation of profit returned, no ROI, but because they believe in, and often want, that which is being invented and developed. No more 80/20 bullshit that the “altruistic” venture capitalists demand from those who actually innovate. Read Henry Ford’s Dearborn Independent articles, I’m sure he would love Bitcoin!This is getting so long I’m sure the dimwitted will start to complain that the comment is longer than the article. So be it. I’ll just sum up my opinion of capitalism by defining it; mine, mine, mine, mine, mine, mine!  If sounding like a socialist is too “off putting” for you, let me put on my capitalist hat, and copyright this fucking comment, and make some money off it, at least. Copyright © 2017 Eager Beaver, All Rights Reserved.

In reply to by oDumbo

q0paz Eager Beaver Sun, 12/17/2017 - 01:18 Permalink

I didn't read your initial comment as being pro socialist. The key element of human advancement is 'contract' not capitalism. Trade entails coming to an agreement which entails discussion of the value proposition then agreement founded in mutual consent and trust in the other party to carry out their side of the bargain. The liberty to exploit one's own intellectual or physical 'capital' is a component, but consensual negotiated co-operation is the outcome. Naturally, the Tim Berners Lees of this world can consensually contribute their intellectual capital in return for the utility it gives them (being thought brilliant, helping their fellow man, whatever). Socialism fucks everything up because it's founded in coercion fuelled by sociopathic lack of respect for the property rights or opinions of others. You asserted, correctly, that value emanates from Trust, and Trust cannot be induced by coercion (quite the opposite).Eager Beaver 1  - ZH Massive 0

In reply to by Eager Beaver

OpenThePodBayDoorHAL PeakOil Sat, 12/16/2017 - 16:24 Permalink

If I hear the "it's trustless!" nonsense one more time I'm gonna retch.I mean can people please put their teensie weensie little thinking caps on *before* commenting on crypto?At the network level you are *trusting* anonymous parties mostly based in that bastion of freedom and transparency China to validate the chain: https://www.buybitcoinworldwide.com/mining/china/Next level down you are *trusting* exchanges to hold your fiat and crypto. Oops, 43% of them have already been hacked.Next level down (if you hold your own keys) you are *trusting* your own machine and your ongoing ability to operate it, avoid man-in-the-middle attacks, and keep it completely free from keyloggers and multiple other known and unknown exploits (good luck).Next level down you are *trusting* code and hardware of a third-party USB wallet. That, by the way, makes it inconvenient as fuck to actually use the BTC for anything except buy-and-hold.And when it's time to cash out, because, you know, the landlord and the grocery store don't accept the stuff as payment, you're back to *trusting* an exchange who will give you back the form of money you can actually use.So join the real world! Freedom from ignorance is easy! Set yourself free from the moron masses! Now you don't ever need to mindlessly parrot "Bitcoin is trustless!" again. You're welcome.

In reply to by PeakOil

Blue Dog Pinto Currency Sat, 12/16/2017 - 14:33 Permalink

Coinmarketcap.com tracks 1360 cryptocurrencies with a combined market cap of $567 billion. Bitcoin is 56% of the entire market but three are still 25 other cryptos with a market cap of over $1 billion.It's not a ponzi scheme. It's a superior fiat money system. We know how many Bitcoins there are. We have no idea how many dollars there are and how many are being counterfeited by North Korea and Iran.Bitcoin has doubled in price since November 25th. That's about 3 weeks. It's going up so fast that you haters out there have time to buy it, double your money, and still get out in time.Some predictions:$30,000 by 12/31/17$100,000 by 3/31/18

In reply to by Pinto Currency

Mustafa Kemal IH8OBAMA Sat, 12/16/2017 - 14:22 Permalink

"It lives in the mind and consists of a vulnerable magnetic phenomena existing on magnetic media."So does the internet, your bank account, paypal, your credit card.Except this is different. There is no bank, paypal as third party.Try this experiment. Go to your bank today and say you want to withdrawal $20K.  Then, instead, try sending $20K$ to a friend 12K in BTC. You will learn alot

In reply to by IH8OBAMA

OpenThePodBayDoorHAL Buckaroo Banzai Sat, 12/16/2017 - 16:30 Permalink

Um, hello, you might refer to that excellent book called "The History of Money Since The First People In The World Started Using It, And Also Every Other Time".Highly inflationary (Zimbabwe): NOT good moneyHighly deflationary (Bitcoin): NOT good moneyMoney that is in between, based on an element that does not deteriorate, that cannot be printed or materialized, and that has a 2,000 year backtest proving it is STABLE IN THE LONG TERM AGAINST THE COST OF GOODS AND SERVICES.While you're at it, look up Gresham's Law.You're welcome.

In reply to by Buckaroo Banzai

Economy-X Buckaroo Banzai Sat, 12/16/2017 - 18:05 Permalink

It doesn't need to written anywhere for it to be a fact. Look at history, more specifically to national economies where currencies collapse (e.g. hyperinflation in Germany where currency became worthless, sowing grounds for fascism; Venezeula today, Argentina numerous times in the past).Anytime a currency has massive valuations or de-valuations the economy experiences enormous shocks, and shocks ain't good. Imagine your life savings become worthless overnight (devaluation), or the cost of your exports to the global economy suddeny become so expensive nobody buys them (valuation). Either scenario is really bad, okay.Nuff said!

In reply to by Buckaroo Banzai