This is not financial advice. Seek the counsel of trusted professionals applicable for your personal goals. Please do your homework.
We are in another bitcoin bubble. The latest spin: Bitcoin is the “new” gold.
We are in another bitcoin bubble. The latest spin: Bitcoin is the “new” gold. The value of all the world’s gold is $9 trillion. Potential bitcoin supply equals 21 million, meaning 1 bitcoin should be worth $400,000.
Nonsense. First, gold has fundamental value with 70% used in jewelry and some in technology. Bitcoin is purely digital. Second, bitcoin is impractical for transactions & lacks the operationality (loans, derivatives) of Ethereum-based protocols. Bitcoin relies on its “store of value,” but has massive volatility, roughly 4 times the vol of gold or the S&P.Matt’s note: I have added links for the reader’s reference
I have taught a blockchain course for 7 yrs and have a new book on DeFi (https://lnkd.in/ebgQzyy). I believe in the potential of this technology. In Dec 2017 when bitcoin was near $20k, I penned a Washington Post OpEd stating that bitcoin was in a bubble as retail investors rushed to create accounts. Today, the surge is driven by institutional investors trying to “ride the bubble.” BITW is a fund that holds cryptocurrencies. It is trading at a 600% premium to the value of the underlying assets! My warning about bitcoin is similar to my warning about certain growth stocks. Many are buying as prices rise, the so-called ”buy-high” strategy, which usually does not end well. #bitcoin #cryptocurrency #blockchain
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