Some Guy From Forbes Craps on Bitcoin

This article from Forbes: 

A Bitcoin Is Worth $4,000–Why You Probably Should Not Own One

is quite a ridiculous read. I don’t disagree with his underlying thesis: (I’m paraphrasing )”Bitcoin is rife with speculation”. But his article is full of contradictions and he demonstrates a lack of knowledge about the utility of Bitcoin. He says its just some currency, but it has no value. And he ignores any of the current and future utility of Bitcoin.

He advocates “investing” your money, not “speculating”. That makes sense it a lot of situations. Buying bitcoin is pure speculation, he says. I mean no one ever speculated in stocks or real estate, right? And he forgets to mention that just holding a fiat currency is inherently speculation that your purchasing power wont decrease.

This is the final line, which is all you need to really see:

The Bitcoin currency is not managed by any government agency, nor is it backed by any government.  Bitcoin values are purely dependent upon holders having faith they will continue to have value.

Talk to the people in Venezuela about currencies “managed” by government agencies. See how that “investment” worked for you:

Venezuelan Bolivar Chart

Second – the entire economy runs on faith. EVERYTHING. Its all trust. Houses have values only when people trust they will hold. Same with stock markets, food and all the rest. What happens when people lose faith in the economy? Just look back to 2008 when the entire economy almost collapsed.

His advice has some merit. I think hes trying to say that Bitcoin is a volatile investment and you should know what you’re doing before investing. But that goes for every investment you will ever make. Its no different than art, real estate, gold, or anything else – do your homework and make informed decisions.

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