The emergence of the world’s largest cryptocurrency – Bitcoin – has seen an
army of critics walking with it who believe the digital asset is empty and void of any real-world
value. These critics are unsurprisingly the same ones who believe Bitcoin’s Day of reckoning
is just around the corner – a balloon that has reached its capacity and is ready to explode.
And yet, for now, Bitcoin seems to roll along, albeit with an occasional stumble.
So will it continue to maintain it’s footing or come crashing down? In this video I’ll
break down the likely result – but first make sure to subscribe to the channel and
press the bell icon to stay across the latest from Kalkine!
Let’s begin by assessing BITCOINS perceived lack of value.
PERHAPS THE BIGGEST criticism of crypto more broadly is that it has no real value, a legendary
sentiment investor Warren Buffet has famously expressed. In an interview with CNBC in 2020,
Buffet said Bitcoin had come from the hope that a holder of cryptocurrency
would be able to sell to someone else for a higher amount of money.
As early as 2014, Buffet criticised Bitcoin telling CNBC Bitcoin doesn’t meet the three
criteria of currency - a means of exchange, a store of value, and a unit of account.
Buffet argues that Bitcoin isn’t a store of value, nor is it a durable means of exchange.
BITCOINS VOLATILITY THE MOST DAMMNING CHARACTERISTIC OF Bitcoin is
its unpredictability and its volatility. Earlier this year, the world got a taste of just how
volatile the world’s largest cryptocurrency could be when it suffered a series of dramatic plummets,
which saw its price go from a record US$63,000 to less than US$30,000. While it’s hard to determine
the influences of the crypto market, the plummet coincided with the controversy surrounding the
harmful impact Bitcoin mining was having on the environment. Tesla chief executive, Elon Musk,
was the main culprit in bringing Bitcoin’s mining practices to the public's attention
after he announced via Twitter that Tesla would no longer accept Bitcoin as payment for their
products. At the time, Musk cited environmental concerns as the reason for his decision.
TRADING IN STAMPS The criticism of Bitcoin piled on over
the weekend as Sweden’s central bank Governor equated trading Bitcoin to trading in stamps.
BLOOMBERG REPORTED Riksbank Governor Stefan Ingves as saying private money usually collapses and,
although it is possible to get rich trading Bitcoin, it’s comparable to trading stamps. [e]
The immediate future of Bitcoin is as uncertain as always. Seemingly whenever Bitcoin drips
dramatically it’s owing to a ‘market correction’ - which often has no underlying rationale. With
bitcoining continue to climb over the 50k US mark and once again approach it’s record point,
previous history would suggest it could again be about to ride the slide. [w] The long-term future,
according to many experts, is non-existent in terms of being a valuable commodity. [e]
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For more info head across to kalkinemedia.com - im james preston for kalkine.