The original founder of bitcoin.com sells all of his Bitcoin and declares the cryptocurrency “the most risky investment a person can make”…
We’ve heard all the pro-Bitcoin arguments:
- It’s decentralized (even though it’s now trading in futures markets)
- It’s a store of value (If less than 10 years is the measure)
- It’s great for buying a cup of coffee.
Granted there are more, but not to beat a dead horse, we’ll just list a few of the pro-Bitcoin arguments.
We won’t even cover the fist one either because there’s 101 ways to demonstrate how Bitcoin is not decentralized at all.
So we’ll just focus on a couple of aspects of Bitcoin in light of significant recent developments.
It is important to discuss this because so many people either don’t understand just how flawed Bitcoin is, or they are not willing to see past the parabolic rise in price.
It’s really a weird phenomena too, becasue the biggest group of Bitcoin fanboys shouting from the Bitcoin rooftops are people who don’t really understand the technology, and these are the same people who were right to initially call-out Bitcoin for what it is. The problem is they have become blinded by short-term paper fiat currency gains and are now drunk off the Kool-Aid.
With what just went down in the Bitcoin space, however, the air could be coming out of this bubble soon.
Case in point – Bitcoin.com founder Emil Oldenburg himself is calling out Bitcoin’s flaws, and he’s voting with his real, non-digital wallet as well.
And since Emil is a young Swede who may or may not understand market dynamics, bubbles, crashes and outright mania, it’s quite possible that lost in google translation, either unwittingly or passively-aggressively, is that Bitcoin.com’s original founder just called the top in Bitcoin.
So let’s look at just a couple of the limitations with Bitcoin and take note that one of the first experts in the space is sounding the alarm.
Here is Emil discussing the limitations via break.se (translated by Google)
“It’s a group of fanatic bitcoin talibans who themselves do not use bitcoin everyday to want it like this. They see bitcoin like digital gold and a technical experiment, not something you should actually use. It will never be a currency used in everyday life or for people who run companies.”
“Fanatic bitcoin talibans” kind of sounds like ” Tulip mania”, doesn’t it?
So we should all heed the warning and take note.: A leading authority is saying Bitcoin is not usable as currency and it’s not practical for companies.
If he doesn’t understand sound money, as in gold & silver, let’s put that in perspective: He’s from Sweden, a War on Cash utopia that doesn’t even like fiat bank notes in circulation.
How would we expect him to naturally have exposure to gold or silver?
But we know, as history has shown time and time again for thousands of years, is that sooner or later everybody goes back to gold and silver.
Emil also brings up the resource hogging issues:
“But then we have miners who are connected to us who always have to pay regardless of whether we manage to break a few blocks. Sometimes we go plus, sometimes back depending on how many blocks we break per month. It will be a bit like a lottery for us “he says, without revealing how much he himself has drawn onto the bitcoin sharpen.
As most people know at this point, bitcoin technology is complicated. But simplified, a “mining” in their network is a person who helps to develop new bitcoins.
“One example is that it is run by people aged 25-40 who live somewhere where there is cheap electricity, such as China, and has type 10,000 computers in a giant server hall. It’s a very big operation, and usually people have capital investors in the back, “says Emil Oldenburg.
Those are some powerful insights from an original Bitcoin advocate.
What have the problems with Bitcoin caused the founder of Bitcoin.com to do?
“An investment in bitcoin right now I would say is the most risky investment you can make. It is an extremely high risk. I’ve actually sold all my bitcoins recently”
And Emil has a stark warning for people getting into Bitcoin right now:
“The vast majority have not yet understood that bitcoins in practice have very low user-friendliness, due to the very high charges and long waiting times for transfers. Simply because most have just bought bitcoin – but never sold or traded with them.
“People have not taken it. As soon as people realize that this is how it works, one will start selling. “
– Half Dollar
About the Author
U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.