I spent some time reading posts on Boglehead regarding crypto, especially Bitcoin.
The main arguments against are:
- It’s a no instrinsec value
- Don’t produce income (unlike stocks)
- For Bitcoin, it’s has failed as a mean of payment (cost and speed)
- It’s a Ponzi scheme. People holding crypto need more people to use/buy them, so the price will increase.
The main arguments for are:
- With more awareness and a limited supply, prices will continue to go up. (For example, Paypal sells crypto now)
- Major banks and funds buy Bitcoin/crypto
- Bitcoin could replace Gold (as a hedge against inflation)
- Reduce transaction cost compared to bank
Ark-invest has published a white paper with interesting arguments and is bullish.:
Two years ago, I bought some unknown crypto which have lost value since. My opinion was Bitcoin will fail due to the speed of the transaction and high commission. I missed that it could be a replacement for Gold. Two years later, I see a lot of potential in Bitcoin and ETH, but few for other crypto.
Do you think ETH and Bitcoin will continue to be the major crypto in the future (currently around 70% of the market cap. A lot of Crypto has been launched but haven’t able to challenge these two)? Do you think it will replace gold? Any idea of the long term price/market cap?