Bitcoin Criticism Answered
Story by: Hans Hauge
Summary
Many powerful people and institutions have come out against Bitcoin; we discuss this.
Some of the detractors are the current Fed Chairman, The Bank for International Settlements, and the Washington Post.
I cover why I, as a US citizen have decided to own Bitcoin.
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Introduction
I try to read as many comments on articles that I write as possible. One reader asked why people were not addressing certain concerns posed about Bitcoin (BTC-USD)(COIN)(OTCQX:GBTC), specifically statements by the Fed Chairman, BIS and others. It it my intention to write articles that you want to read; so, this one is for you @soajustice.
Fed Chairman Powell on Bitcoin
Jerome Powell told members of Congress that “relatively unsophisticated investors see the asset go up in price, and they think: ‘This is great; I’ll buy this.’ In fact, there is no promise of that.
First thing, there is no promise that any investment will go up. Relatively unsophisticated investors will make many mistakes, as will the sophisticated ones. The only real differences between sophisticated and unsophisticated investors are the ability to strategize and quantify risk (and their net worth if you’re using the textbook definition).
But, instead of just saying “Bitcoin is risky,” which would have been true and a fair warning; Mr. Powell seems to blame investors for taking an interest in Bitcoin, which has in fact gone up quite a lot over the years (although the price is very volatile). See below:
| Year | High Price |
| 2010 | $0.37 |
| 2011 | $32 |
| 2012 | $13 |
| 2013 | $1,009 |
| 2014 | $867 |
| 2015 | $459 |
| 2016 | $998 |
| 2017 | $19,290 |
Data Source: blockchain.com
Mr. Powell goes on to say:
The Fed chairman also said cryptocurrencies are not real currencies because they have no intrinsic value.
This attack doesn’t make much sense. What is intrinsic value after all?
Intrinsic value is the perceived or calculated value of a company, including tangible and intangible factors, using fundamental analysis.
Original story: https://seekingalpha.com/article/4205220-bitcoin-criticism-answered
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