Note: This is not financial advice. I am not a financial advisor. Don’t sue me.
Bitcoin is a bubble. The Bitcoin bubble will pop. Nobody knows when it will pop, but it will.
Bitcoin has no intrinsic value or utility. You can set a dollar on fire for warmth or wipe your butt with it in a pinch.
Bitcoin is just pixels on a screen. If your battery dies, you are Bitcoin broke.
It gets worse.
You can’t buy anything with Bitcoin. Fewer stores accept it now than even a couple of years ago. The websites tracking real-life Bitcoin accepters have long since shut down. The promised Bitcoin ATMs never appeared.
Call me crazy, but I always thought the purpose of currency was for the exchange of goods and services.
Since you can’t buy anything with it, Bitcoin is essentially an investment vehicle. Yet, there are no real ancillary instruments available for Bitcoin.
The only hedge you have against Bitcoin are hard currencies or other, similarly flawed, cryptocurrencies.
Though Bitcoin may be a currency that you can’t buy anything with and an investment vehicle without any instruments, it’s not all bad news.
Bitcoin does have one very important thing going for it: its fans.
Lots of people love Bitcoin and believe in what it stands for. If/when Bitcoin is attacked — whether by hackers or a nation state — there will be men ready to fight for it.
That’s why Bitcoin is the second worst currency in the world.
The world’s worst currency is the Euro. No one would fight for the European Union.