IS BITCOIN CLOSE TO BECOMING “WORTH-LESS”?

MAYBE – MAYBE NOT?

By Dr. David E. Marcinko MBA

An article by Market Watch’s Atuyla Sarin titled, “Bitcoin is Close to Becoming Worthless” made the rounds on social media and got some people and physician investors panicking.

LINK: https://lnkd.in/eyNrGE9

And so, colleague Pete Quinones, over at the “Free Man Beyond The Wall”, invited Cointext CTO Vin Armani to come on the show to refute the reporting in the article. Vin also commented on the state of the crypto markets and Ohio’s accepting of Bitcoin for tax payments.

PODCAST: https://lnkd.in/eMrTgH4

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Conclusion: Your thoughts and comments are appreciated.

BUSINESS, FINANCE, INVESTING  & INSURANCE TEXTS FOR DOCTORS:

1 – https://lnkd.in/ebWtzGg

2 – https://lnkd.in/ezkQMfR

3 – https://lnkd.in/ewJPTJs

THANK YOU

Risk Management, Liability Insurance, and Asset Protection Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™8Comprehensive Financial Planning Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™

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6 Responses

  1. BTC: An assorted history UPDATE 2020

    Satoshi Nakamoto distributed the bitcoin whitepaper to a cryptography listserv almost exactly 12 years ago (Halloween 2008). 64 days later, a bitcoin was born.
    You could buy one bitcoin for $10 on election night in 2012.
    During the 2016 election, the price was $710.
    Bitcoin last rendezvoused with $15,000 in January 2018, after maxing out north of $19,000 a month before.

    Two theories behind the speculation

    Safe haven asset. Investors park money in these assets—U.S. bonds, gold, the spot under your mattress—during downturns or geopolitical turbulence. Another source of volatility = a changing of the guard.

    Bitcoin has some qualities that make it seem like a safe haven asset.
    But the theory was battle-tested when markets tanked in March and the cryptocurrency briefly fell to a one-year low of $3,858.

    Novel economic institution (h/t ARK). “Money Printer Go Brrr” entered memers’ repertoire earlier this year as governments turned to bazooka-sized fiscal stimulus to cope with the pandemic.

    The meme hits different with bitcoin: The cryptocurrency’s inflation-resistant design doesn’t let central banks (or anyone) put their thumb on the scales.
    Boosters describe bitcoin as an asset that doesn’t lose value, like fiat money, as governments adjust monetary policy, raise the debt ceiling, etc…

    Big picture: Theorizing beyond the trendlines, bitcoin faithful have ideas for why the digital gold standard will be so durable.
    2020 has more uncertainty in store

    But one thing’s for sure: Institutional players, payment processors, and tech companies are warming to bitcoin. And central banks are hatching plans to launch their own digital currencies.

    We don’t have a blockchain-based crystal ball and neither do you. But let’s play a game: When will bitcoin pass $20,000? We’ll store your answers on a distributed ledger, and when/if $20k happens, we’ll send a gift to whoever has the most accurate prediction.

    Anonymous

    Like

  2. Bitcoin,

    JPMorgan said that bitcoin could trade as high as $146,000 (not a typo) if it continues to compete with gold as a safe-haven asset for investors.
    Remember, not too long ago JPMorgan CEO Jamie Dimon called bitcoin a “fraud.”

    Sandy

    Like

  3. No longer just a “bit”?
    $40,000 BIT COIN Share Today
    Malak

    Like

  4. BITCOIN

    Bitcoin was first in the door. Nevertheless, it’s technology is obsolescent. Bitcoin is a first generation cryptocurrency. We are now on the third generation.

    What does that mean from the standpoint of technology?

    Bitcoin has the capability to process 3+ transactions per second. Second generation cryptos such as Ethereum can process 12+ per second and third generation cryptos at 10,000+ per second.

    The average fee per transaction is $2.99 for Bitcoin, $2.89 for Ethereum and $0.001 for third generation.

    Transaction confirmations take about 10 to 60 minutes for Bitcoin, 10 to 20 seconds for Ethereum and 3 to 5 seconds for third gen cryptos.

    So from the standpoint of functionality as a medium of exchange, Bitcoin is not a great option. There is tremendous speculative value in Bitcoin and it is anyone’s guess how long its run will go. It is hard to envision it maintaining it’s value in the long run.

    Eddie Davis

    Liked by 1 person

  5. RECORDS – How we got here

    A brief timeline of bitcoin’s rise, fall, and even bigger rise.

    2008: Satoshi Nakamoto published the bitcoin white paper that laid out the principles of a “new electronic cash system that’s fully peer-to-peer, with no trusted third party.” To this day, one knows who (or what group of people) Satoshi is.

    2010: A programmer bought two pizzas for 10,000 bitcoin in what will go down as the most expensive pizza transaction ever. Let’s just assume there were 16 slices between the two pies and you take 15 bites per slice—at today’s bitcoin price, that’s about $2 million per bite.

    2017: JPMorgan CEO Jamie Dimon called bitcoin a “fraud” (a comment he later walked back).

    2018: The NYT ran an article with the headline, “Everyone is getting hilariously rich and you’re not” after bitcoin jumped from $830 to $19,300 in the span of one year. Things stopped being quite so hilarious later in 2018, when bitcoin crashed to $3,200.

    2020–2021: After hovering below $10,000 for months, bitcoin refueled its rocket ship. It’s already up about 75% this year alone.

    Ed

    Like

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