BTC traded as low as 1/100 of a cent when an exchange crashed. Another low used is 6/100 of a cent on an exchange that did not crash. What else traded for less than a cent?
You didn't answer the question. What is the valuation based on right now? The future possibilities? It has failed as a currency yet we are giving it higher valuation???
6/100 of a cent is cheap for anything. The valuation of Bitcoin is a criticism of central bank inflation targeting, quantitative easing, and commercial bank fractional reserve banking. After the 2013 Cyprus bank bail in and the Greek 20% bank deposit confiscation, why would you keep money in a bank, it is no longer a store of value. Bank bail in instead of bail out is now a European Union and maybe world policy. How do you, personally, store value?
Come on, giving the PR speech. It is so 2010... 1. This argument flew 6 years ago. Today when there are multiple cryptos BETTER than Bitcoin it doesn't fly anymore. It is dead Jerry, dead. 2. In my health. I stay young.
Bank bail in is still policy though. Why would you store money in a bank if you could lose 20% or more in a financial crisis? How do you invest? Do you have a deposit account?
I work out and take supplements. But seriously, I trade the ES and yes, we have a 401K. You see here is the risk problem with cryptos: You can not guarantee they aren't going to crash next week. So yes, I could put a little money behind them but I would also make not so much money. And I would never put big money into them specially after this big run up...
Look at ripple. If it replaces swift bank transfers then it is going to equal or beat the valuation of Visa. I think you can make an investment case for ripple.
Ripple is centralized. So if we like Ripple now we moved another goal post and decentralization is out of the window. And Ripple is already adopted by institutions. So I guess it is a bigger success technologically than Bitcoin. By the way I don't have a problem with cryptos as long as they are advanced, constantly improving and their valuation is based on usage/feature and not because people own it.
I read a story that a guy bought 2 pizzas with Bitcoins (some of the very early usage of BTC in real transaction), and the amount of Bitcoins he paid for the pizzas worth at least 20 millions now. Anyway, there are plenty of stories that people are making a fortune when Bitcoins are exploding into insane value, but there will be probably stories that people will again make huge fortune when Bitcoins are crashing down the drain, only time will tell. But since nobody can predict the top, so shorting can be a dangerous game. For in this market, the price movement is more a psychological game than a technical setup.
I agree. The argument of the "unbankable" poor in 3rd or 4th world situations having access to the technology that allow for this decentralized currency is a LONG way off. And quite frankly, the poor would most likely be better off with a WORKING centralised system with its checks and balances(flawed as it may be).