Sell Bitcoin: It’s Doomed
You read it correctly. The Betamax of crypto-currencies, Bitcoin will fail.
“Bitcoin is a neat idea, and nothing more. It’s the Betamax of crypto-currencies.”
Investors will tell you to hold onto Bitcoin because it’s a decentralized economy and better for the world. Bitcoin may pretend to be a currency or an economy, but don’t be fooled. Bitcoin is merely a decentralized medium of exchange. It’s roughly the same as the tokens used in Chucky-Cheese. Give me a break!
Bitcoin is good for the world! Hooey! Does hoarding and wasting energy make for a better world? According to the Bitcoin Energy Consumption Index, Bitcoin uses roughly 32 terawatts of energy per year, or what it takes to power 3 million households. Think about that for a second. A much better use of those resources would be to help power 3 million impoverished homes across the world! One projection suggests by summer of 2019, Bitcoin usage will require more electricity than what’s used by the entire United States. Imagine what could be accomplished with that kind of energy?
“Bitcoin increase the cost of your electrical bill. Buying bitcoin is a betrayal of the environment and the poor family trying to make ends meet.”
Next — as a fallback position — they will declare, “It’s a great investment!” Even if that were true, how does individual asset appreciation help the world? It doesn’t, it just concentrates wealth. Beyond the smoke and mirrors, Bitcoin remains a slow and expensive medium of exchange while having very limited applicability. Even if they magically made Bitcoin energy efficient and available to all, it would still fail because of the actual costs of the transaction, which must include the time and reliability of the system.
Let’s say a guy wants to buy his new girlfriend breakfast. The bill comes to $25, so he digs into his stash of bitcoins. Yet, The transaction’s delayed by a minute. He gets annoyed. Five minutes later, he’s embarrassed. Ten minutes in, he, like every other person experiencing the same frustrating experience, will be looking for a way to unload his digital dough. Such headaches will cause the Bitcoin market to fall apart just like the demand did for a once popular video tape device.
“Bitcoin lacks a worthy purpose and will be an artifact in short order. A crypto-currency based on a principle that makes the world better will be the one that endures.”
Like the mortgage market of the past decade, Bitcoin persists as nothing more than a trick to pad the wealthy’s bank accounts with more zeros. As a system built on a design flaw, Bitcoin’s inevitable downfall looms large. Most importantly, it fails to recognize the next successful crypto-currency will be one which solves problems like income inequality and poverty.
Time to Sell!