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Why bitcoin may crack R1m this year

Richard da Sousa of AltcoinTrader makes his predictions for 2021.

AltcoinTrader CEO Richard da Sousa sees bitcoin smashing through the R1 million mark this year, and decentralised finance (DeFi) built around cryptos taking a giant bite out of the lunch of traditional financial institutions. If you think cryptos are a passing fad, you’re in for a rude shock – you can already earn interest on your crypto and borrow money through DeFi platforms at much cheaper rates than local banks.

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I am sure that Richard de Sousa is a totally objective, thoroughly disinterested third-party observer in the crypto debate. Nothing like having the valuable option of one void of personal vested interests.

Be that what it may, it would behove one to ask oneself just what gives crypto currency its value? Why do people value something that is not backed by anything at all? Fiat money (just another form of Ponzi) is backed by irredeemable debt but crypto has no fundamental backing whatsoever.

What about the technology behind cryptocurrency. Would the technology not be considered an asset of increasing value because of the many potential applications being implemented now, although all of it still fairly in the infancy stage, plus the vast number of potential applications being increasingly discovered on an ongoing basis, to solve particular problems or offering potential solutions to how society can function more effectively. Why can’t these applications in the form of  computing power and digital solutions be not of value to society, hence be considered assets with which crypto currency, a component of this same technology be also backed by – is an asset not anything that is valuable or offers some form of value to society.

Whether we like it or not, struggling to wrap our heads around it or not, comparing it to traditional assets or not, the fact is the migration toward digital payments and digital representations of value continues to accelerate, driven by the Covid-19 pandemic and the increased interest in digital currencies from central banks, institutions and consumers, Furthermore, like any new invention and the initial problems experienced at the onset, because the invention is still in the process of being perfected, also accompanied by suspicion whether the invention has any potential value as a use case or not, likewise cryptocurrencies are volatile because they are still in their infancy, round about a decade old, very far from being mature, obviously with anything new or a new way of doing something there is going to be lots of hiccups, and with those hiccups will come tremendous fluctuations (volatility) with the trust element, which if there is a potential use case, nonetheless would still affect value to varying degrees, until things mature and settle down which comes with time. So at this point in the lifespan of cryptocurrency and its fairly  distinguishable but inseparable blockchain technology, it’s still too early to form any concrete conclusions, although I agree with the stance many are taking that cryptocurrency is still a supposed asset of speculation. Time will tell. Let’s not jump the gun here with hasty conclusions, as has been done in the past against technologies that are a normal part of our lives today.

No. I do not believe the blockchain as specified as the foundation for BTC by Satoshi Nakamoto is an asset as it is open source and not-patented.

Yes. Commercial organisations can innovate on top of the basic idea and be granted a patent so long as the claims in the patent application are shown to be novel and nonobvious. By doing to they create an proprietary technology assets that can be valued based on the discounted value of the expected future cash flows that they will be able to generate from the patent.

For “something” to serve as the backing for another currency, that something must also be acceptable as a store of value and a medium of exchange. I don’t see how proprietary technology assets can fulfill that function, because sure as Bob someone will come up with something better and make it obsolete.

How are people prepared to pay millions for a piece of cloth with an oil painting picture on it? Clearly the piece of cloth has negligible real value.

Why are people prepared to pay more than triple for first class tickets to fly to the same destination?

Why do people value bitcoin? Good question. Currently (actually past 10 years) the prize is rising beating all other conventional investments by miles. It is perceived to be a a wealth protector: governments can’t inflate/deflate, no need to find ways to get money offshore, easy to transfer, etc. All strong reasons; what do you think?

haha yes let’s trust the fed, the very people that reversed their dump truck of QE into a swamp. Any idea how much M2 has been created in the last year? Try 23.6%. I’m not saying put all your eggs into crypto but from where i’m sitting it’s pretty good Smuck insurance ( in the words of (Chamath Palihapitiya) because the geniuses at central banks seems to have discovered the printing press. 1 to 2 % of nav seems to be a good amount. Just because you do not understand the fundamentals does not mean you should discredit something.

Just wait until a Bitcoin ETF is approved and Coinbase IPO(already given green light) in the next few months. Pre IPO contracts valuing the company at $70+ billion. Every passive investor will own crypto, through exposure via listed compnies. You will buy my coins at $100K, you wont even know it.

Well , there where instances of bitcoins being used more than once , was this once off , or a fundamental flaw ? If someone “cracks” the code , then it will render bitcoins completely worthless

Are you sure you know what you are talking about? #doublespend Do some homework

A chain re-organization of one block occurred, which is a fairly common occurrence; no bitcoin was “double-spent” as no new coins were added to supply.

Instead, the same coins from the same wallet were registered in two different blocks during a typical split in Bitcoin’s blockchain.

If you don’t understand, get to understand lest you be shown up as a MotherFudder.

Yes all people will die, you and me included. Does it mean we all stop living now?

Hahahahaha

Everyone that believes in the value of Bitcoin should go for serious psychiatric evaluation.

People get very offended and say “you don’t understand” , I might not understand the nitty gritty of Bitcoin , but I don’t have to understand it.

Let’s rather focus on the bigger picture. The long and the short is , Bitcoin is a bubble.

No matter how much it is sold for today , there is very little fundamental value here.

Of course it’s a bubble…in fact it has experienced many bubbles since it was $10. A 30% to 80% swing is normal for Bitcoin but legacy investments describe this as a bubble.

It will still go through many bubbles on its way to $1m.

i still dont understand bitcoin however decided to get some through EC10 in November and well lets just say the rest is history. it remains 4% of my portfolio. If all all goes to zero from here on in i have lost nothing as i regularly withdrew profits to buy “safer” baskets

Has anyone seen Santosha lately ? When regulation comes there are going to be a lot of awkward hard to answer questions. No head office no FICA and so it goes . No address no accountability!

All I can say is this …
Elon Musk made a clever move by offloading Tesla shares at their top price and investing into Bitcoin ( which has resulted in the subsequent rise of Bitcoins value). Tesla’s disappointing results this week will see a drop in Tesla’s value to ordinary shareholders. Did he have advanced warning? That’s for another day…just Beware what happens when Elon decides to sell his Bitcoins!!! Just my opinion.

End of comments.

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