Monday, August 21, 2017

Blockchain is a genius - But Bitcoin has a major problem

"It is a punter's dream. I give them credit for that, but it is something that I will absolutely stay away from, have stayed away from it, didn't understand it to begin with, don't understand it now.

What bothers me is that something that can move 5, 10, 15, 18 percent in the course of the day for what's supposed to be a pricing mechanism. How can you buy a house? How can you buy a car? How can you buy Starbucks with bitcoin when the price is going to fluctuate as [dramatically] as it has? This looks to me, you can take the chart of Bitcoin and apply the Bitcoin chart to the Tulip mania of the 15th century.

My problem with Bitcoin also is originally, the concept behind bitcoin was it was supposed to be a finite number of currencies. That is it would be better than the dollar or euro because those are infinite and they can be created by Central Banks out of air. But the problem is now there 1059 crypto currencies all of which can be increased. There will probably be 2000 crypto currencies. The finite nature of crypto currencies universe has become an infinite nature. We'll walk in one day and this will all have ended. And it will end very badly." - CNBC