Bitcoin/Cryptocurrencies – Digital Gold or Tulip Bulb?


(akhilgulecha) #208

I think most of us have agreed that Bitcoin cannot work as a currency and it doesn’t fulfill the basic characteristics to be one.

However, what a lot of crypto investors equate Bitcoin with is Gold. It has more in common with Gold than it does with currency. Eg - Limited supply, hedge against regular currency, mining, etc. The reason Gold has value is because people believe it has value. I think this fact has been iterated by a lot of major investors like the Winklevoss Twins and Peter Thiel.

In case Bitcoin does become digital Gold, here are some numbers. The market cap of Gold is 17 trillion dollars and hence, bitcoin has a long way to go.


(Alok Bhola) #209

#210

I just wrote an article. Hope you might find it informative.


(Akshay Nayak) #211

The Bitcoin is a concept that was first introduced by Japan’s Satoshi Nakamoto as a decentralised global digital payment system designed to negate third party interference during the course of an online transaction. But today, Bitcoin is being seen as the future of currencies as we know them, and as an attractive investment opportunity. I however believe that the Bitcoin is not an effective currency because it neither has transaction value, because it can’t be used to buy or sell stuff, nor does it store any value because it has no purchasing power in the first place.

And at the same time it is dangerous to invest in Bitcoin right now because prices are being driven more by speculation than by the actual underlying fundamentals, which is why I personally feel that it is only a matter of time before the Bitcoin party ends, and that all those who stay invested in Bitcoin for too long are destined to meet a tragic end and lose a truckload of money. So it would be wise for anyone at the Bitcoin party to quit and come home before they end up with a nasty hangover.

And while I feel that a digital currency is definitely the future on a 10-15 year time period, and we may well have a better online currency at the end of the 10-15 year period, I am fairly confident that the Bitcoin in its current incarnation doesn’t quite fit that bill, and that therefore the Bitcoin is more likely to be just another ‘flavour of the month’ story and not a paradigm shift in the world of currencies and online transactions.


(utsavbasak) #212

I wrote a blog about asset classes, taking into perspective the macro scenario. The prices and declines seem to be moving in tune with the liquidity inherent in the world’s financial system. There is more to the price rise than fundamentals, infact I feel there are no fundamentals. There is just liquidity.


#213

Blockchain based decentralised loan. 0.5% charged at the time of payback with no time limit. Only defaults if the collateralized asset (ether) plunge below certain level. Yesterday, we loaned ourself $3480 within few minutes (that what it tooks to get the transaction added to blockchain).

It’s insanely cheap, fast and secured than traditional loans and no one can scam the system as no middlemen or central power is indulged.

I penned my thoughts on it in the following article. Hope you might find it interesting.


(Alok Bhola) #214

Gangtok-based State Bank of Sikkim (SBS) is a lender that is not regulated by RBI and therefore is not affected by the ban. However, the bank has made a strict internal policy that they do not want to support any crypto assets businesses.


(Alok Bhola) #215