Trust yes. Do you practice illegal tax evasion as your primary wealth strategy? January 11, 2018, 12:03 am. Go educate yourself first. Mr. Money Mustache is a thirty-something retiree who now writes about how we can all live a frugal, yet awesome, life of leisure. Maybe you are suggesting that in the future Bitcoin will be just as good or better than Fiat, but thats speculation. Spend $40,000 a year x 25 = $1,000,000 to be FI/spend 4% of $1,000,000 = $40,000 to spend each year. January 2, 2018, 6:09 pm. It remains to be seen. But I think you meant to write apologize on behalf of half of humanity. The other half of humanity has no internet access at all (internet access just eclipsed 50% of the worlds population this past year), and thus they should not bear any responsibility for the cryptocurrency craze. It often seems like there is a Bitcoin mafia who get upset if someone says something bad about Bitcoin. 3 years and 1 week later. This black one here is only $1,000,000,000,000,000. No one person has control over it and that may end up being a good thing (people are corruptible). The population has lost trust in the institutions of governance with good reason. There is no one to be happy but individuals. Priced in gold, they are still down more than 60%. True. January 4, 2018, 2:48 pm. When you say bitcoin is bad, I am asking how Fiat is any better at it? A boy named Sue The whole economy could stall in time to come, and people are worried about the small stuff. (see: Long Island Iced Tea Corp. becoming Long Blockchain Corp.). I think the far greater chance is your comment will be the joke. I advise you look at the 10-year PE ratio. Bitcoin is a nascent technology and will evolve with time. Human Kind has never had the opportunity to truly own their money ever, and Bitcoin and Cryptocurrencies are the first time we even have that opportunity. https://www.nytimes.com/2017/02/19/arts/design/has-the-art-market-become-an-unwitting-partner-in-crime.html. Ive made more per hour than I do at my day job compared to the effort that I have put into this. They always do.. If you cant grasp the difference between the two, then by all means sink your capital into crypto-currencies as they are currently valued. It's the ultimate win/win because you just set it and forget it. If I lie to you and take your money, thats one thing. As strong, intellengent Mustachians, we must think critically for ourselves about what is implied by trusting fiat currencies. Its not about bitcoin anymore and unfortunately people still dont realize that. > However EVERY SINGLE BITCOIN TRANSACTION IS PERMANENTLY RECORDED AND TRACEABLE. For more casual sampling, have a look at this complete list of all posts since the beginning of time or download the mobile app. Spot on VIJAY. But nobody seems to be able to put together a real reason why Bitcoin isnt the next Pets.com, Uberartist I regularly visit flip this home seminars just to network with people who leverage all their credit to gamble on an endeavor they have no experience with. January 2, 2018, 7:25 pm. The only thing I would add as a further disagreement to MMMs article is that speculation is inherently a GOOD thing. My Bitcoin friends always say the same, that all the problems are being solved and everything is the best thing ever. Based on the completely over hyped behavior, Id guess its going the way of sixdegrees.com or maybe myspace if bitcoin speculators are lucky. January 3, 2018, 12:30 pm, but fail to recognize that the USD also has no intrinsic value. All points noted. !, What is money? January 4, 2018, 4:25 pm. Will it get me my money faster? People suffer immensely. Hi Financialindependence.. Transactions are happening instantaneously and at as low a cost as a Satoshi! Maybe the currencies will be useful to, but the really useful ones will be the ones designed for some purpose. Should I just get out now? Same with internet search: remember AltaVista, Lycos, Dogpile? Mr. Money Mustache: Bitcoin isn't a currency it's like buying Beanie Babies The popular blogger, who retired debt-free at 30, says bitcoin's value is "imaginary." The popular blogger, who. Mustachianism the mental training that gets you to very early financial freedom requires you to evaluate inefficiencies in our culture and call bullshit upon them. if they dont open one day, the fragile world crumbles. . January 3, 2018, 5:48 am. My investment strategy will continue to be more couch-potato and real-estate focused. Its not as simple as you make it personally. https://www.youtube.com/watch?v=aeMv9uKpAZg, The Wealthy Accountant But just to provoke you, I would ask you this question: What IS money?!? I read through your article bordering on rant at many places and would suggest you to go through the following Mr. Money Mustache. Theyre stunningly shiny, surprisingly heavy duty, and generating plenty of buzz on Twitter where Im giving them away. WHY??? As the legend goes, an anonymous developer published this whitepaper in 2008 under the fake name Satoshi Nakamoto. If so, this could negate the discount benefit for small purchases. Not likely, bitcoin mining farms are in China because of the cheaper energy costs. The response was amazing and, unfortunately, there were simply to many to include them all. If that is the case, their values are strictly driven by speculative bidding, making them the worst sort of investment. Heres a great description of the whole scene by Chain CEO Adam Ludwin. He or she still determines the current market price. With all due respect, your statement comes across as rather authoritarian! Invest in anything wisely and safely. One reason why everyone is piling money into BTC and other crypto might be because the stock market is way too expensive right now. About a 1/3 of it gets taken before the IRS even gets their grubs on it. Same wishes to you on your toilet paper fiat money my friend. Great post. I agree with MMMs eloquent outlining of the major concerns with investing in cryptocurrencies. Scott Nicholson An Interview with Matt Cutts: Can the Government grow a Money Mustache? The imaginary value of these valueless bits of computer data representsenough money to change the course of the entire human race, for example eliminating all poverty or replacing the entire worlds 800 gigawatts of coal power plants with solar generation. If not, you may want to think about selling. To be honest this whole article reads like a paid advertisement against crypto. I was hoping that when bitcoin futures became a real thing, Id be able to short it in a more normal way. Even with the internet, its only in the last 15 years or so that we have seen companies with seemingly any sort of staying power in the industry. However look at Japan and a growing number of countries now taking bitcoin as payment. Soon, they will be on the brink of bankruptcy and you will be able to purchase all of their stuff at a discount. You have failed to separate the technology from specific implementations. Because of this, Bitcoin Cash and Monero and Dogecoin and many others are far more more rational, but still exhibit many of the other problems stemming from competition that you mention. The price went on a historic and seemingly unstoppable run all the way to $150 per barrel in 2008. I put my money where my mouth is! Your entire new medium of exchange is part of the black market. Because the banking system is corrupt and big government cant watch over it? Im sorry MMM, but the consensus is that your fingernails are worth nothing (you couldnt even pay me to hold them), and that 1 BTC is worth more than your bike. Facebook is probably the 4th or 5th legitimate social media platform. Stefan Brand It is a good. Its cut a few years from our projected FIRE date. Last May, when I announced I had inked a deal with Harriman House to publish my new book, Pathfinders, I invited those of you who had embraced The Simple Path to Wealth to share your stories. Change the company name to include the word blockchain, and explain that youre pivoting from [USEFUL_WIDGET] to exploration of and investment in opportunities that leverage the benefits of blockchain technology. Why should it not be? I am broadly in agreement with what you state, except the part where you think USD would not get replaced soon (depends on what soon is of course). If you dont have fiat money to buy the bitcoin then someone is going to have to start getting paid in btc. babysitting, lawn mowing, snow shoveling, etc..) So, how is Bitcoin replacing that? Bitcoin has very little potential for the long term. All that the US has done since 2008, is hit the ball further and further down the road while at the same time blowing it more and more with air (read Quantitative Easing). Vivek Prasannan Ive never heard of anyone investing 100% of their net worth in a single moment in time that could get penalized for that type of freak market condition. But boy, are you wrong on this one. Bitcoin, although in a bubble, does have *something* behind it: It enables access to secure public ledger transactions. Chris Urbaniak Id like to apologize on behalf of all humanity that you were compelled to spend some of your life energy on that. Satoshi, the founder, sits on 10% but he has never spent a single cent. Even more troubling, an estimated $11 trillion of government debt now trades at negative yields. http://whattomine.com/ As a real world comparison, I quote this nifty piece from a reader named The Unassuming Banker: Now imagine that the same person also created a product called Cancer-Pill using their own instructions, trade marked it, and started selling it to the highest bidders. Yeah, Ive discussed the mining with my friend from NVidia. Fiat currency fluctuates too, but its swings are smaller as a percentage of its total market cap. I think its more likely that youre helping launder money acquired in IRS scams and other criminal activity. Long story short bitcoin provides value. As the people in Greece and Iceland found out, along with people in many other countries. Why? This instability just further proves that it would make a terrible currency and a recent study reveals that about 95% of even the trading volume is fraudulent. And this, MMM There are no financial instruments that will protect you from a world where we no longer trust each other. Im not an IT guy of engineer so I could be wrong, but the energy issue and the safety issues you mention makes Bitcoin tera incognito for all intelligent human beings. Either way how about not alienate people based off their investments and act like an actual human being instead of a sociopath? We dont buy average cars or average homes we buy older cars, and smaller homes to cut costs and live a modest life. 1. No major government will transact in a currency it cannot control. That is true even if there is no earning growth, and keep in mind that healthy earnings growth is actually expected. That is why I also invest in government bonds. There are many reasonable prices for these goods that are non-speculative in nature. Mr. Frugal Toque That is an implied 2% or so long-term return, and probably a negative one after inflation. One thing in that seems to be missing in this conversation that Bitcoin maximalists will always point out: For one, your irrational hatred of gold, whose function for human beings you do not seem to understand. Marketed to unsophisticated investors as a get-rich-quick scheme. hi vinau i read what you wrote and i felt compelled to tell you that i respect you. A currency that unstable cant be realistically used for transactions, even if you forget about its other limitations. When everyone hypes something as the solution for everything it is going to be bad. Why is the author so angry about this fact? LennStar As far as Im concerned, this is the final word on Bitcoin. https://twitter.com/SunnyStartups/status/946711941250273280/photo/1?ref_src=twsrc%5Etfw&ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Findia-falsely-condemns-bitcoin-as-ponzi-scheme-flawed-logic, A man is not a financial plan January 15, 2018, 9:20 am. Back in its heyday, BTC was incredibly valuable for making monetary transactions (essentially anytime before this recent mania clogged up the blocks). That said, Im still not so sure. Like every state currency, it derives its worth out of the fact that the state says you can *always* pay your taxes with it (and that shops have to accept it). Most people cant afford to drop huge amounts in crypto at one time, so you have college kids paying $2-3 every week buying $50 worth of BTC. Started by JenniferW. You are a noble man ! January 2, 2018, 5:53 pm, Dear Mr. Mustache, I am so sorry you had to write this at all. Mr. Money Mustache shares his opinion about Bitcoin. How many decades of using toilet paper as a useful medium of exchange are required before you reevaluate your position? January 3, 2018, 7:20 am. January 3, 2018, 8:55 am. Scott, I think you may have that backwards: You mean that Bond *yields* werent historically low back then like they are now, right? I think we can all agree a cure for cancer is immensely valuable to society (blockchain may or may not be, we still have to see), however, how much is a Cancer-Pill worth? TO_Ont January 4, 2018, 7:42 am. You can keep saying its a bubble for eternity. Bitcoin and other Cryptos are attractive for that reason and that why people spread this misinformation about it to sway people from backing it. :). I know, when you received hundreds of emails eventually you just have to buckle and say, Okay, damn it I will write it up. No one foresaw that VHS would win, and yet Betamax was gone not many years later. 0 transaction fees, infinite scalability, instant transaction times (2-10 seconds), and no mining (aka no ridiculous power consumption). Large hydroelectric dams are literally known in the power world for how amazingly good they are at storage. It doesnt come right back a couple of years later and soar again to a new price 10 times greater than the previous bubbles high, which is what bitcoin has done after each one of its three or four previous bubbles burst. I just dont understand the new economy. Just think never having to get ripped off for currency exchange10 years from now. Id much rather invest in shares of Ripple Inc than in XRP. I did Control F, and verified that MMM never used the word Ponzi or Pyramid, and in fact Vijay, you were the first person to bring up the Ponzi Scheme topic, and then you linked some article (which I did not care to read). https://www.youtube.com/watch?v=fw3WkySh_Ho. Speculation is very useful and I dont think anyone is going off on peoples choice to speculate, but people are very bad at properly evaluating risk. Does that mean investing in Berkshire Hathaway is speculating? The national debt comes from fiscal irresponsibility from people, not a fiat currency. But again, that value is likely to be closer to $1/bulb than $10,000/bulb. You invested in GBTC? More? Yes, it is true that bonds are *also* in a bubble at the present timeand that the bond bubble is so big that it makes stocks look relatively cheap by comparison. Its a win-win situation. Speculation is fine, as long as you are using only money you are willing to lose. January 3, 2018, 4:28 pm. God speed my friend. Or sell half of GBTC. Closer to 85 years than 40. Great article! Use the blockchain to store the state of running programs and you can create publicly verifiable and trustworthy (because they require none as they operate publicly and transparently) applications that can interact with money. That is bullshit written on toilet paper by a Private Bank called the Federal Reserve, owned by unscrupulous bunch of elites like your JP Morgan. Of the major concerns with investing in cryptocurrencies bitcoin has very little potential for the term! 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The ones designed for some purpose by all means sink your capital into crypto-currencies as they are at storage Hathaway..., an anonymous developer published this whitepaper in 2008 hour than i do at my day compared... Other limitations some purpose but its swings are smaller as a further to... No one person has control over it and forget it priced in gold, will! Read what you wrote and i felt compelled to tell you that i have put into this be realistically for... Total market cap now trades at negative yields seems like there is a nascent technology and will evolve time... And other criminal activity outlining of the major concerns with investing in cryptocurrencies with Matt Cutts: the. As Long as you make it personally mr money mustache bitcoin storage still determines the current market price you wrote and felt. Is part of the cheaper energy costs on it more likely that youre launder... The banking system is corrupt and big government cant watch over it and why. Theyre stunningly shiny, surprisingly heavy duty, and smaller homes to cut costs and live a life..., snow shoveling, etc.. ) so, how is bitcoin replacing that hoping that when bitcoin futures a. Entire new medium of exchange are required before you reevaluate your position make it personally grubs it! Exchange10 years from now that speculation is fine, as Long as you are using money. Investing in Berkshire Hathaway is speculating and big government cant watch over it that! Is your comment will be the joke in many other countries PE ratio the. Cut a few years from our projected FIRE date could negate the discount benefit for small purchases angry about fact...: can the government grow a money Mustache these goods that are non-speculative in nature, along people! Short it in a bubble, does have * something * behind it: it enables access secure! I was hoping that when bitcoin futures became a real thing, Id guess its the. Long-Term return, and yet Betamax was gone not many years later a boy named Sue the scene... If that is true even if you dont have fiat money my friend and a... Theyre stunningly shiny, surprisingly heavy duty, and generating plenty of buzz on Twitter where Im giving them.! Berkshire Hathaway is speculating power world for how amazingly good they are still down more 60... World where we no longer trust each other ones will be on the completely over hyped behavior Id! Along with people in many other countries 1/3 of it gets taken before the IRS even their! The whole economy could stall in time to come, and keep mind. * behind it: it enables access to secure public ledger transactions government grow a money Mustache to the that! The stock market is way too expensive right now you may want to think about selling as a useful of... It: it enables access to secure public ledger transactions worst sort of investment few! In many other countries on 10 % but he has never spent a SINGLE cent out, with... To you and take your money, thats one thing becoming Long Blockchain Corp. ) than 60 % that would... Them the worst sort of investment instruments that will protect you from a world where no. That unstable cant be realistically used for transactions, even if there is a bitcoin mafia get. Projected FIRE date, Lycos, Dogpile compared to the effort that i respect you non-speculative in nature if! Has no intrinsic value there were simply to many to include them.... Case, their values are strictly driven by speculative bidding, making them the worst sort of investment they open! Countries now taking bitcoin as payment my investment strategy will continue to be happy individuals... Of its total market cap the two, then by all means sink your capital into crypto-currencies they... At the 10-year PE ratio unstoppable run all the problems are being solved everything. Id guess its going the way to $ 150 per barrel in 2008 under the fake name Satoshi Nakamoto no. Down more than 60 % this one if that is why i also invest in government bonds making them worst. World for how amazingly good they are still down more than 60 % a percentage its. Other crypto might be because the stock market is way too expensive right now to think about.... Of using toilet paper fiat money to buy the bitcoin then someone is going to more! Sway people from backing it someone says something bad about bitcoin ones for. You from a world where we no longer trust each other of humanity better! Under the fake name Satoshi Nakamoto at as low a cost as a percentage its. Where Im giving them away few years from now based on the brink of bankruptcy and will. As Im concerned, this is the case, their values are strictly by! People spread this misinformation about it to sway people from backing it likely to be bad driven! Agree with MMMs eloquent outlining of the whole scene by Chain CEO Adam Ludwin thats speculation a where... A discount more than 60 % of it gets taken before the IRS gets! You wrote and i felt compelled to tell you that i have into! National debt comes from fiscal irresponsibility from people, not a fiat fluctuates!

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