Does anyone think it is worth it to currently buy bitcoin to see if will continue to inflate? Or is the bubble about to burst again.
There are lots of other assets to buy if you’re looking to get into a bubble while it’s hot. :)
Determining the intrinsic value of a bitcoin is pretty hard. The prevailing theory is that it’ll be the currency transfer mechanism of choice in the future. But that doesn’t say much about what a bitcoin is worth. If I want to transfer $100 to someone in Patagonia, do I or the recipient care whether a bitcoin is worth $200 or $0.00002? No. I buy the appropriate amount, transfer them, and the recipient cashes out. The only limitation is that there have to be enough bitcoins to cover all “in flight” transactions. If $100 million (to pick a number) is transferred every hour (assuming that’s how long verification takes), then each bitcoin (assuming all 21 million are in play) is worth about $5.
Or you could take the long view that bitcoins will replace all other currency in existence as not just a transfer mechanism, but also as a value store. If those 21 million bitcoins replace only the US $10 trillion that’s out there (ignoring other currencies), then each one would be worth around $475,000. Time to buy, baby!
Personally, my biggest hangup would still be the fact that buying or selling bitcoins means interacting with a bitcoin exchange at some point, and “bitcoin exchange” may as well be synonymous with “security catastrophe” at this point.
Interesting, just following it the last couple weeks is what caught my eye, even though I have read about it for years. The value nearly doubling is impressive even though it probably is more of an exchange mechanism rather than an actual currency. I agree with the “bitcoin exchanges”, with the only recommendation from a past video being “Coinbase” which is startup in San Francisco. I think I’ll rely on stocks as usual.