Courtesy of Mish
Over the past months or so I accumulated a number of articles regarding Bitcoin and ICO (initial Coin Offerings) myths and hype.
Let’s also take a look at what I consider to be fatal flaws, one I have not seen discussed yet in articles, but the idea is easily understood.
Myth #1: BitCoin is the Next Gold
September 5, Bloomberg: Could Bitcoin be the Next Gold?
The idea is preposterous. There is no “next gold”.
Gold is gold, nothing else.
Myth #2: The Institutional Herd is Coming
September 4, Charles Hugh Smith via Zerohedge: Bitcoin, Sour Grapes, And The Institutional Herd.
Smith: What’s the value proposition in declaring BTC is in a bubble?
Mish: The bubble proposition value is the same now as declaring the housing bubble before it happened in 2004 and again more recently
Curiously, on September 12, 2017, Smith proclaimed Housing Bubble Symmetry: Look Out Below. I guess it’s OK to talk about housing bubbles but not Bitcoin bubbles? What value proposition is that?
Smith: Declaring Bitcoin a bubble is starting to sound like sour grapes.
Mish: Just like declaring a housing bubble is sounding like sour grapes? Right?
Smith: The point is institutional ownership of Bitcoin is in the very early stages. As bitcoin continues to advance, institutional money managers will be forced to buy in, just to avoid the fate of those who failed to buy Apple. Money managers buying now at $4,500 will look like geniuses when it hits $10,000, and everybody who dismissed BTC as a bubble at $5,000 will face a bleak choice–either get some bitcoin in the portfolio or prepare for a pink slip. When the institutional herd starts running, it’s best not to get trampled.
Mish: Institutional investors will be forced in? Really?
They never embraced gold, silver, copper, the Euro on the way up, the Yen on the way up, or the dollar when it bottomed.
It could happen, but realistically there is no reason to believe institutions will embrace Bitcoin. If anything, there is every reason to believe institutional investors will leave Bitcoin alone.
[Read, for example, Jamie Dimon Slams Bitcoin as a ‘Fraud’ ~ ed.]
