Topic: [2018-03-02] Bank of England head 'Bitcoin is for fools' - page 2. (Read 290 times)
What else can you hear from the head of the bank about the crypto currency, except for the negative. If the crypto-currency deprives them of the profits they are accustomed to have, without bothering, because there was no other alternative at all. And here there is a technology that allows you to instantly make transfers without the participation of banks and other intermediaries at any time of the day. Of course, bankers will be unhappy with this technology. In addition, it should be noted that it is representatives of banks that are so critical of the crypto currency, it is they who are most affected by it.
The problem is the graduation. In stock markets, something like the Dotcom bubble happens every 10 years or so, and something like the tulip mania once in 100 or 200 years. In the crypto world, we see insane Tulip manias every 2 years or so.
You can't deny that volatility in cryptocurrency markets is much higher than in almost all other markets. Basically, because nobody knows the "fair valuation": Bulls claim they will replace all fiat currencies and assets and are heading to astronomical prices, while bears claim they're unsustainable and will have zero value once the hype is over.
Cryptocurrencies must work on that problem if they want to become a real alternative to fiat money, otherwise they will be seen mainly as an alternative to gambling. The best way to start is to use them as a currency, for them to get a more stable connection to the real economy (I'll say this again and again, and no, that's not an endorsement of Bitcoin Cash
).
You can't deny that volatility in cryptocurrency markets is much higher than in almost all other markets. Basically, because nobody knows the "fair valuation": Bulls claim they will replace all fiat currencies and assets and are heading to astronomical prices, while bears claim they're unsustainable and will have zero value once the hype is over.
Cryptocurrencies must work on that problem if they want to become a real alternative to fiat money, otherwise they will be seen mainly as an alternative to gambling. The best way to start is to use them as a currency, for them to get a more stable connection to the real economy (I'll say this again and again, and no, that's not an endorsement of Bitcoin Cash
). 
When I read the headline, I associated it with the phrase greater fools' game. And it seems true that Mr. Carney used the term in this context (bubbles that attract 'fools').
The problem is that these "fools" really exist and are acting in a "foolish" way - the classic "buy high, sell low" folks that buy an asset at the moment of maximum hype - and thus pays the highest price for it. These are the people that bought Bitcoin for $15 or even $19K and sold in panic at $8K.
Even if Bitcoin's price continues to grow, if volatility is not lowered drastically, there will be moments where such "fools" will lose big amounts of money. Let's imagine a Bitcoin that stabilizes at a final price level of about $200.000 but before has seen a bubble to $1 million. Those that paid $1M will never see 80% of their money again. And prices simply cannot go up indefinitely.
FOMO is definitively a problem in the cryptocurrency community, and we should not underestimate its negative side effects on the acceptance of Bitcoin in the population. Bitcoin may be more accepted now than some years ago, but as long as people lose money investing in it, it will have its detractors.
The problem is that these "fools" really exist and are acting in a "foolish" way - the classic "buy high, sell low" folks that buy an asset at the moment of maximum hype - and thus pays the highest price for it. These are the people that bought Bitcoin for $15 or even $19K and sold in panic at $8K.
Even if Bitcoin's price continues to grow, if volatility is not lowered drastically, there will be moments where such "fools" will lose big amounts of money. Let's imagine a Bitcoin that stabilizes at a final price level of about $200.000 but before has seen a bubble to $1 million. Those that paid $1M will never see 80% of their money again. And prices simply cannot go up indefinitely.
FOMO is definitively a problem in the cryptocurrency community, and we should not underestimate its negative side effects on the acceptance of Bitcoin in the population. Bitcoin may be more accepted now than some years ago, but as long as people lose money investing in it, it will have its detractors.
They've lost vast amounts in the past and no doubt will again. Same goes for stocks, spread betting, options, forex, property, classic cars, you name it. Bitcoin really isn't behaving much differently, it's just the addition of adoption and discovery is making it faster.
And it anyone's responsible for bubbles it's people of his ilk. Everything has been in a bubble.
The negativity he's attributing to it can be just as easily applied to most other things out there. He has his points but they're tired and obvious ones.
When I read the headline, I associated it with the phrase greater fools' game. And it seems true that Mr. Carney used the term in this context (bubbles that attract 'fools').
The problem is that these "fools" really exist and are acting in a "foolish" way - the classic "buy high, sell low" folks that buy an asset at the moment of maximum hype - and thus pays the highest price for it. These are the people that bought Bitcoin for $15 or even $19K and sold in panic at $8K.
Even if Bitcoin's price continues to grow, if volatility is not lowered drastically, there will be moments where such "fools" will lose big amounts of money. Let's imagine a Bitcoin that stabilizes at a final price level of about $200.000 but before has seen a bubble to $1 million. Those that paid $1M will never see 80% of their money again. And prices simply cannot go up indefinitely.
FOMO is definitively a problem in the cryptocurrency community, and we should not underestimate its negative side effects on the acceptance of Bitcoin in the population. Bitcoin may be more accepted now than some years ago, but as long as people lose money investing in it, it will have its detractors.
The problem is that these "fools" really exist and are acting in a "foolish" way - the classic "buy high, sell low" folks that buy an asset at the moment of maximum hype - and thus pays the highest price for it. These are the people that bought Bitcoin for $15 or even $19K and sold in panic at $8K.
Even if Bitcoin's price continues to grow, if volatility is not lowered drastically, there will be moments where such "fools" will lose big amounts of money. Let's imagine a Bitcoin that stabilizes at a final price level of about $200.000 but before has seen a bubble to $1 million. Those that paid $1M will never see 80% of their money again. And prices simply cannot go up indefinitely.
FOMO is definitively a problem in the cryptocurrency community, and we should not underestimate its negative side effects on the acceptance of Bitcoin in the population. Bitcoin may be more accepted now than some years ago, but as long as people lose money investing in it, it will have its detractors.
It's just common central bank gibberish, which is nothing new anymore.
Most central bank comments have been perfectly sensible and factual - no one controls it, there won't be any bailout, it could go to zero, we can't do anything if it does go tits up, most of the places you use to interact with it are dodgy as fuck.
And I do find it extremely irritating when Bitcoin fans don't acknowledge that they're talking sense.
It's fairly rare for them to take it to next level whining. I would keep my gob shut and let it play out myself, especially at this stage of the game.
I am a fool for wanting to have the financial freedom I was never allowed to have by this system.
I am a fool for seeing my wealth grow year after year, while the majority of the no-coiners see their wealth decrease, and lose purchasing power on their existing wealth at the same time.
It's just common central bank gibberish, which is nothing new anymore. Let me be the fool they think I am for using Bitcoin, and I'll let them be the suckers that became redundant at the moment Bitcoin came to life.
Once we're 10 or so years away from now, the same banks will become fools to at the moment they understand that adopting Bitcoin is the only logical way to bring their entire operations to the next level.
I am a fool for seeing my wealth grow year after year, while the majority of the no-coiners see their wealth decrease, and lose purchasing power on their existing wealth at the same time.
It's just common central bank gibberish, which is nothing new anymore. Let me be the fool they think I am for using Bitcoin, and I'll let them be the suckers that became redundant at the moment Bitcoin came to life.
Once we're 10 or so years away from now, the same banks will become fools to at the moment they understand that adopting Bitcoin is the only logical way to bring their entire operations to the next level.
http://www.dailymail.co.uk/money/markets/article-5455703/Bitcoin-fools-says-BoE-governor-Mark-Carney.html
Another classic from Mark Carney.
Now what's interesting about this is the comments. Commenters do like being arch anyway, but there's barely a negative comment regarding BTC in there. Unimaginable a few years ago.
These banking types really are doing a wonderful job of Streisand Effecting crypto. Keep it up, boys.
Another classic from Mark Carney.
Now what's interesting about this is the comments. Commenters do like being arch anyway, but there's barely a negative comment regarding BTC in there. Unimaginable a few years ago.
These banking types really are doing a wonderful job of Streisand Effecting crypto. Keep it up, boys.
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