Some of my thoughts on Bitcoin

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Under the traditional paradigms of economic analysis, Bitcoin is most certainly a bubble. However, I have been tempted to give it the benefit of the doubt since there is really no historical precedent for the economic behavior of cryptocurrency. Now consider the definition of an economic bubble: "An economic bubble is trade in an asset at a price or price range that strongly exceeds the asset's intrinsic value." This raises what is to me the core unanswered and perhaps ultimately unanswerable question about cryptocurrency trading: What is the intrinsic value of a Bitcoin?

My answer is: Once upon a time, the intrinsic value of a Bitcoin was commensurate with the computing power and electrical power used to mine it. But now that there are alternative cryptocurrencies which improve substantially on Bitcoin in one or more major facets: essentially nothing. Any apparent intrinsic value that Bitcoin has is actually retained momentum from being the first cryptocurrency.

Bitcoin serves one practical purpose, which is allowing individuals worldwide to transfer money without the encumbrances of currency exchanges, transaction fees, and administrative overhead. Some hardcore advocates will extol the glories of Bitcoin as the most secure and anonymous means of payment available. It may once have been that, but these days that cannot be considered likely because Bitcoin has become mainstream, with all of the regulation and monitoring that entails.

However, Bitcoin is currently traded primarily as a means of speculation, which has enormously inflated its price. Eventually, the market will correct itself by popping this bubble. Then currencies more suited to actually being used a means of payment, such as Ripple, will take hold. Ripple is the only major cryptocurrency I can recommend speculating on, but even then, the hopeful investor should regard Ripple not as investment but gambling, and therefore never play with more than they can lose.
I find it hilarious anyone would trust Bitcoin.

It's run by who? Exactly. Cryptocurrency is even more corrupt than banks and money are because it doesn't even have any legally liable reason to not completely run away with that number on your screen at any time.
Bitcoin is like playing those crash gambling games. 
--> @XLAV
I don't know what you mean by "crash gambling games," but if I did, I'd probably agree with it.
--> @Thoth
There are a lot of gambling sites that involve skins in CSGO. One of the games in said gambling sites is popularly called 'Crash'. It's kind of like a short term version of a stock market. 

Basically, you bet an amount, after the betting time is over  the multiplier increases overtime. The multiplier multiplies the amount you bet. Similar to the stock market, the goal of the game is to know when to stop and cash out because if you don't the 'crash' will happen and the multiplier becomes '0' thus losing all your money. The crash happens randomly and it even crashes at the start of the game. 

Bitcoin does share some similarity. The prices change fast and its hard to tell when the price will go up or down. 
--> @Thoth
I bought 5000 ripple when it was at 25 cents :)
--> @Greyparrot
But what did you sell it at?
--> @Thoth
im going to hang on to it for 5 to 10 years.
Did anyone here buy IOTA? I have some IOTA and I'm hoping the price will increase.

349 days later
Bitcoin is not a (crypto) currency; it's a stock. The "cryptocurrency" is merely a guise to make the block chain technology, which is essentially an online ledger, more palatable to the masses (a la the removal of the "gold standard" after "The Great Depression.") Funny how it popped up after the housing "crisis." 1.7 Billion people don't have bank accounts, meaning they have transactions which are unaccounted. Therefore tribute... I mean "taxes" cannot be deducted from said transactions. It's already started with these payment apps. The banking families will have their cut by any means necessary.

--> @Athias
If the bankers will win no matter what, I'm safer staying with the banks.

I understand that some nations oppress their people and that cryptocurrency and online anonymity really are the 'only way out' for some to access things online that aren't morally reprehensible as such... However, overall what are cryptocurrency purchases and online anonymity used for? Exactly.

If both from a pragmatic stance that banks are going to win when and if an economic-control war breaks out and also a romantic stance that cryptocurrency is used for morally reprehensible purposes, I have two strong angles to conclude that I'm better with my cash in a bank that I trust.
--> @RationalMadman
If the bankers will win no matter what, I'm safer staying with the banks.

I understand that some nations oppress their people and that cryptocurrency and online anonymity really are the 'only way out' for some to access things online that aren't morally reprehensible as such... However, overall what are cryptocurrency purchases and online anonymity used for? Exactly.

If both from a pragmatic stance that banks are going to win when and if an economic-control war breaks out and also a romantic stance that cryptocurrency is used for morally reprehensible purposes, I have two strong angles to conclude that I'm better with my cash in a bank that I trust.
That "trust" you provide banks is codified with slave labor as collateral. The banks can ensure the "safety of your money" because citizens are liable for public debt. They can print fiat against their capital reserves and index the value of each note to your labor prospects. Is that not morally reprehensible?

And by no means am I stating that cryptocurrency is safe. Quite the opposite. Cryptocurrencies like Bitcoin have become popularized because the Banking families intend to streamline the Block chain technology for the masses (i.e. government regulated monetary transactions.)

--> @Athias
Block chain is about encryption of data in the sense that in the block-chain Utopia this chat here would reveal to you and I everyone who ever opened up and saw it. It's never ever going to be allowed to truly happen;N & Co. Will see to that. A world where trust is no longer needed I'd a nightmare to people living under tyranny and to the opposite; anarchists who often will deal in crypto currency. Both ends of the spectrum have reason for their populace to be dissatisfied with a block-chain Utopia.

A world where everyone is exposed to everyone is great but it means we all need to sacrifice privacy at once and that's never ever gonna happen, let's face it.

--> @RationalMadman
A world where trust is no longer needed I'd a nightmare to people living under tyranny and to the opposite; anarchists who often will deal in crypto currency. Both ends of the spectrum have reason for their populace to be dissatisfied with a block-chain Utopia.

A world where everyone is exposed to everyone is great but it means we all need to sacrifice privacy at once and that's never ever gonna happen, let's face it.

They'll sell the idea to an unwitting populace (much like they're trying to sell the RFID chip.) Much of the populace is unaware (at best willfully ignorant) that they're living under a tyranny.