Call me old fashioned but I’m still not convinced by this Bitcoin thing. I will admit now that I was an early adopter, back in 2009, but quickly realised that it had no value and that I couldn’t spent it anywhere. And boy do I wish I hadn’t got rid of them. Simply because I know now that I could have suckered someone out of $400 for 1 digital coin.
My problem with Bitcoin isn’t that its a currency that has no limitations, in the sense that it can’t be seized by governments when you’re crossing the border. Or that it can be used completely anonymously. My problem with it is that I can’t hold it like Gold, Silver or precious Gem stones.
Because it’s online I have no real guarantee of its safety or value in the same way that I do with bullion. And like all digital entities I have no idea of any real world value. That’s part of the reason why I’m also a massive skeptic when it comes to companies like Twitter or Facebook trying to float on the stock markets.
For example when Facebook first floated people tried selling shares at $11 a pop. But the markets did the sensible thing, they questioned if Facebook was actually able to show any real world value or effects, and ended up watching as the price plummeted. And when you think about it what can Facebook show in the real world? Yes it’s a great platform for advertising and for targeted campaigns and so on but at the end of the day what product does it really produce? Bitcoin is arguably the same… It has a value because we are told that it has a value.
Gold and Silver on the other hand have a value because we can use them. I don’t see people wearing Bitcoin necklaces or rings in the near future, mainly because Bitcoin is not a physical element. Much in the same way that Rio Tinto produces real industrial output whilst Facebook and Twitter don’t. Even Amazon produces a real output.
So in effect I believe that Bitcoin is not much better than the Fiat Currencies that exist today and that if we really want to be free of the central bankers then it looks like Gold and Silver is the only option. Sorry Max Keiser but I think I would prefer to be a Gold Bug rather than suffer a repeat of the Millennium Bug.