He's one of the early believers. They did not get paid for supporting bitcoin and actually gave away bitcoin to encourage adoption. What people think as the sign of the top "Taxi/Uber drivers, Bell Boy, Housewives, School children, Accountants, Dentists, etc. etc." getting in to bitcoin is something that 5 years ago the bitcoin community were giving away coins to, to spread the network. Look up how much bitcoin was given away to MIT students and the current value. Type this in to google "Metcalfe's law bitcoin".
Well, I bought 5 coins when there were trading for 575 or something like that. Never bothered to look at the MtM and still do not care enough to watch it. For me it's a convexity play. This said, if it was a significant portion of my net worth, I might have behaved differently. Intrinsic value is in the eye of the beholder (in this case, a few million people that decided that this is worth paying for). It's not that much different than other "stores of value" - gold, art, stocks etc.
Anyone have any thoughts on "Bitcoin Jesus" saying he sold almost all his BTC ("developers ruined it")and bought Bitcoin cash ? This was on CNBC fast money today.
On the fair side, there are problems with applying the logic of network value to financial assets. PS. apparently I own both BTC and bitcoin cash.
Apparently, it's been tracking the price of bitcoin with a high accuracy. Just one measure, what I do know is that bitcoin was worth much much much less when the Uber Taxi drivers and the likes were not part of the network as it was mainly a novelty item. You probably remember those times when you bought your 5 coins.
Intrinsic value is in the eye of the beholder (in this case, a few million people that decided that this is worth paying for). It's not that much different than other "stores of value" - gold, art, stocks etc.[/QUOTE] Something along the lines of "An idea is worth as much as someone is willing to pay for it, not a penny more"
Well, that's a given - more people want an asset, the asset will cost more however, the network value grows exponentially while a most financial assets have a tendency to "mature". Personally, I think eventually bitcoin will be "adopted into boredom" by the Wall Street and the saga will end there. It will become another alternative asset, will be regulated (of course, like any other regulation, people will come up with ways to circumvent it) and will be easy to trade. At that point every PWM bookie out there will be suggesting a 1% bitcoin allocation to his clients. I think it's still a long way off and it's very likely we will see bitcoin at 5k before we arrive there (50k? 100? who knows), but that's my long term view. There are tail events possible, obviously - a complete destruction down to zero due to regulatory pressures, though at this stage I would be very surprised if that happens. Also, an equally tail event would be that the whole crypto thing will break the world of finance as we know it - tokens will replace stocks, blockchains (faster ones, hopefully) will replace exchanges etc. PS. if I had access to smarter IT people, I'd look into getting involved in "tokens as financial instruments" game, it's low probability but the payoff could be immense