Could you please comment with an educated guess about Bitcoin's next dip?
I have watched several Nouriel Roubini's videos, where he basically spits on cryptos, blockchain, shitcoins, and Bitcoin.
I have to say he speaks in an authoritarian way with a lot of confidence and what seems like anger but could be associated with allergy to a radically new socio-economical paradigm that Bitcoin and blockchain space could represent.
Although he is widely regarded as an "economy" guru etc... And I respect that; his whole character really bothers me because he is just a puppet that is here to alter the truth... So here is quick destruction of the beginning of his argumentation, I will remain extremely objective and will use external sources to answer his sometimes stupid assertion when any...
- NR: "We don't need blockchain, we don't need crypto!" - How bold, how limited! We might not need blockchain, but we need crypto-currencies... So we need blockchain. Bitcoin is too volatile? Then use a stable coin. Below is a pretty simple description of the pro's and cons of stable coins (source: https://www.quora.com/What-are-the-advantages-and-disadvantages-of-Stablecoins-compared-to-traditional-cryptocurrencies ):
Stablecoin has a ton of points of interest.
• The most critical is that these digital currencies enable their proprietors to be moderately tranquil for their benefits, exploiting all the positive parts of cryptoeconomy.
• In certainty, stablecoins can be considered as dollars, gold, oil, etc exchanged crypto exchanges. Normally, against the foundation of different coins that don't have such an incredible base, they are substantially more steady.
For instance, we will take Tether. 1 USDT dependably had an estimation of 1 U.S. dollar. Practically speaking the most extreme expense of USDT was $1,05, and least — $0,92. Be that as it may, there was it at the snapshots of solid variances of the cryptomarket and the negative occasions associated with the working of the cash, for example, breaking and robbery of benefits for the aggregate over $30 million which has occurred in the fall of 2017.
• During the most grounded fall of digital money showcase before the New Year, when numerous monetary standards dropped more than 30-70%, Tether again held out inside 8%. It isn't comprehended what will happen explicitly with USDT because of how designers respond to the occasions, however in itself guaranteeing the money with the dollar desires supported.
• In certainty, an amazing dollar stablecoin will enable us to utilize the USD on cryptoexchanges. Presently numerous trades don't bolster fiat, and those that help, generally speaking, require the client to pass confirmation.
The digital forms of money gave real qualities can be utilized in regular day to day existence, in little and medium business nearly without fears.
Blockchain innovation enables the holder to make sure that his money is truly furnished with an advantage.
Disadvantages of Stablecoin
Be that as it may, stablecoin has various disservices and they don't enable it to make a noteworthy challenge to driving digital forms of money:
• Stablecoin, in contrast to regular cryptographic forms of money, does not bode well to use as a venture resource. In the event that $ 100 stablecoins were purchased for $ 100, at that point in two years they will at present expense $ 100, paying little mind to what will happen to the dollar.
• Stablecoin, binded to a customary resource, ends up being reliant on it and on the customary money related structure, which involves dangers not found in regular cryptographic forms of money.
• Some clients aren't sure that the official to a customary financial framework can give a decentralizovannost, and to the proprietor — obscurity.
• Finally, if the digital currency speaks to a code which is recorded in the memory of the PC, at that point the customary resource frequently requests exceptional capacity conditions, assets for giving these conditions, etc.
As per Bitcoin: It is a speculative asset, not a currency that can be used to simply exchange value. In order for Bitcoin to become a currency, a country should make Bitcoin as its own national currency and should accept having no control over its own currency price fluctuation...
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"NR: I would say 99% of crypto-currencies are worth 0" - If you know well, just short them... Skin in the game...
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NR: "Why would I want to trust somebody in Russia or somebody in China to validate my transactions?" - Although we can not rationally explain this sentence, let's still suppose that all the Bitcoin transactions are validated by Russian and Chinese, as Nouriel seems to believe, then the reason are simple. a) It is faster b) It is cheaper c) It is safer d) It is 100% reliable d) It is more stable e) It is more transparent f) Ask former Lehman Brother's clients' why they might prefer using Bitcoin or other decentralized crypto currency...
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NR: "To me this entire space has been the mother and the father of all financial bubbles" Come on! We are just out of the 2008 financial crisis that wiped:
- 23.1 million Americans, or 15% of the public, are out of work or unable to find full-time jobs using the broadest measure of unemployment, or U-6.
- 9.3 million Americans have lost their health insurance.
- 11 million homeowners, almost 1 in 4, are saddled with mortgages higher than the value of their homes. https://finance.yahoo.com/blogs/daily-ticker/2008-financial-crisis-cost-americans-12-8-trillion-145432501.html So who is the mother of all bubbles now? It's 5 minutes of research... No need to be a top economist like Nouriel to find those numbers. The whole crypto space never even reached USD 1 Trillion. So it appears to me that someone has a cow it milks happily and doesn't want to have them free... And then, of course, the Dot Com bubble, out of which not even 1% of companies have survived... https://www.investopedia.com/terms/d/dotcom-bubble.asp
I mean, I could go on and on and on, but having someone so famous that really lies so much with impunity makes me sick.
And tired actually... So yeah...
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