The Wall Street Journal Just Said Bitcoin Is Probably Worth Zero by Dr. Chris Kacher
WALL ST JOURNAL SAYS BITCOIN IS PROBABLY WORTH ZERO?! LMAO
Frank Zappa was right. The most common thing in the universe is stupidity. And hypocrisy.
Sidebar: In light of my upcoming book, Riding the Revolutionary Rocket with Cryptotechnology... Entirely Evolutionary™, I'm letting my following know to sign up to Steemit. Upvote and follow me.
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The Wall Street Journal is at it again with another major story published Sept 18 on how bitcoin is probably worth zero:
https://www.wsj.com/articles/bitcoins-wild-ride-shows-the-truth-it-is-probably-worth-zero-1505760623
The story was authored by James Macintosh, one of the Wall Street journalists hired to uphold the status quo.
Monumental Ignorance
The article is chock full of inaccuracies. The author clearly has little to no understanding of bitcoin or blockchain technologies. The monumental ignorance by mainstream media is beyond massive. Is it any wonder why the majority no longer trusts mainstream sources?
WSJ vs. Dr. Kacher
Mackintosh's writes: "There is no chance whatsoever that bitcoin can displace the dollar, for the simple reason that it is badly designed."
Dr. Kacher: Improvements are ongoing (isn't that what forks are for?), not to mention the number of cryptocurrencies that improve on and fulfill other functions thus can co-exist with bitcoin. Further, the world has never been mired in so much debt as now with interest rates at historically low levels. The sovereign debt crisis is upon us with no chance of paying back the debt if 5000 years of recorded human history is any guide. Rather, bitcoin or some digital equivalent will make a wonderful substitute for fiat currencies. It's a race to zero between the dollar, the euro, and the yuan while quantitative easing remains at record levels. Central banks have painted themselves into a corner. The can has been kicked down this road since 2009. Are we coming to the end of the road?
Plus major game changing technologies are afoot as blockchain technology decentralizes existing structures. The effects are transformational. Already we see ICOs offering a decentralized CPU (Golem), decentralized storage (Filecoin), decentralized gaming marketplace (Dmarket), decentralized insurance (Etherisc), decentralized exchanges (Bitshares), and decentralized web hosting (Substratum). We also have ICOs bridging crypto- and real economies by tokenizing shares of any asset (LAToken), unbanking the banked (OmiseGo), and banking the unbanked (HumanIQ).
Mackintosh's claim: No one will want to spend bitcoin because it keeps going up in value, yet then goes on to say it is equivalent to 17th-century tulip mania so suggests it should be worthless:
"…Gresham’s law, the nostrum that bad money drives out good. Given the choice of spending inflationary government-issued money or something which holds its value, everyone would spend the bad paper stuff and hoard the bitcoin. You wouldn’t want to be the person who spent 10,000 bitcoins on two pizzas in 2010, when a bitcoin was worth a fraction of a cent. Those bitcoins are now worth $40 million. But if no one spends bitcoin, it will never get established as a currency."
"On this basis the recent price of $3,950 is mostly speculation, and J.P. Morgan Chase & Co. Chief Executive James Dimon’s comparison to the 17th-century Dutch tulip mania is apt. Bitcoin is "being driven all over the place by speculative portfolio flows"."
Dr. Kacher: Doesn't all this beg the question of why bitcoin and the entire cryptospace keeps rising in value? Or are these guys too thick to even bother to question why bitcoin has risen from the equivalent of $1 to about $4 million since 2009 even after all the 50-94% corrections along the way? Meanwhile, the whole cryptospace is now valued at around $130 billion, up from $6 billion a year ago.
By making these assertions, the author completely fails to see the massive utility behind bitcoin and blockchain. Bitcoin as a way to buy goods and services is just the ice cube on the iceberg.
Mackintosh's claim: He tries to cast bitcoin in a negative light as a method of exchange for dealing drugs. Yet he admits that online drug dealing is fringe so a very small percentage of bitcoin's utility. He then says bitcoin might be used as a store of value such as gold but argues that gold has thousands of years of history while bitcoin was created in 2009.
Dr. Kacher: Bitcoin is decentralized, viral technology which grows exponentially. To compare the age of bitcoin to the age of gold and say gold therefore has an advantage is to profess ignorance at how fast exponential technologies grow. If anyone here remembers, it was argued back in 1994 that the internet has little to no value because it is all digital, not real world.
The Revolution Will Not Be Centralized™
Mainstream media and guys like JPMorgan CEO Jamie Dimon are part of central-banking Keynesian spending. They fear a form of currency that cannot be controlled. Are you surprised?
As for bitcoin having no value and coming out of thin air thus being "nothing", if I'm not mistaken, hasn't the U.S. Federal Reserve been doing this with dollars since the post-2008 financial meltdown? They can print as much as they want. Global central banks, too. At least bitcoin is governed by mathematics in terms of how much gets created while its blockchain technology provides massive utility which is why it has skyrocketed from $1 in 2009 to about $4 million today.
Incidentally, Dimon, who recently called bitcoin a fraud, had to pay $13 billion in fines for fraudulent mortgages that caused the housing crisis. The HYPOCRISY of human beings is astounding!
Reminds me of the argument I had with Nouriel Roubini (Dr. Doom) in NYC back in 2013 at a bitcoin event I was hosting. Roubini said bitcoin has no concrete value. These old school guys just don’t get it. Or perhaps they're so part of the status quo, they hate blockchain because it represents great change. They would rather see blockchain die.
About Dr. Chris Kacher
Dr. Chris Kacher has appeared on major television, radio, and print programs and is the bestselling author of "How We Made 18,000% in the Stock Market". He founded Creative Trading Ltd, a company aimed at helping others invest in cryptocurrencies. He is currently launching a pro bono cryptocurrency fund and has been an investor in various cryptocurrencies starting in 2013 including STEEMIT when it was founded in 2016. He is the co-founder of www.virtueofselfishinvesting.com and has co-authored several books in investments as well as over 100 scientific journal articles in the nuclear sciences. He helped to discover element 110 on the Periodic Table of Elements as well as confirm the discovery of element 106 which his team named Seaborgium after his UC Berkeley Ph.D. thesis advisor Professor Glenn Seaborg. His music has also charted on the iTunes music charts twice. http://en.wikipedia.org/wiki/Chris_Kacher
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