3/04 ANDY HOFFMAN (CryptoGoldCentral.com): Bitcoin – What, If Anything, Are We “Missing?”

For more than 15 years, I experienced the fervor of “goldbugs” regarding Precious Metals’ “once and future” leadership of the monetary realm. As an opportunist, and pure capitalist, I had no use for philosophical – and at times, borderline cultish views of gold and silver in the world…as to me, they were nothing but investments. Which, I might add, is how I view Bitcoin, too.

Goldbugs claim to have thousands of years of history on their side – but that’s what they are “missing”; i.e., the fact that past is not prologue, and the future is rapidly changing – particularly in such a technologically dominated world. Thus, aside from the fact that Precious Metals have been propagandized into obscurity; and diluted by paper substitutes into oblivion; goldbugs completely missed the simple fact that they have become archaic – even compared to advanced fiat systems like the U.S. dollar.

True, the paradox of continued economic growth despite parabolically rising debt looms as a giant question mark about the financial future. However, the dollar doesn’t appear to be going anywhere, anytime soon – so frankly, it’s difficult to envision anything catalyzing a wholesale investor run on physical Precious Metals.

As for Bitcoin, the question is a bit more complex. Clearly, it is the most advanced financial innovation in history – and with each passing day, its immunity and anti-fragility grow stronger. However, the aftermath of the late 2017 bubble – now 15 months old – has some questioning what we’re “missing.”

Many simply dismiss it as another typical Bitcoin boom/bust – like the Mt Gox-led episode of late 2013 to early 2014, that led to a 90% decline, followed by a year-and-a-half of trading just above those low – before surging anew in late 2015, just in time for the 2016 halving. In other words, this is just “Bitcoin being Bitcoin” – and thus, we’ll simply meander around current levels for several more months, before starting a new upturn leading into the 2020 halving.

I, however, view markets as signaling mechanisms – and right now, they are signaling something is wrong. Markets have been known to be wrong, of course – but given all we know of the wonders of Bitcoin, why is it having so much trouble rebounding? The answer, of course, is that there is no answer – as no one truly knows what, if anything, the market is “signaling.”

All I ask, is that you continue to do your due diligence on this extremely nascent, non-mainstream technology – and if you decide to commit significant resources to it (or altcoins), continue asking yourself how, if at all, you could be wrong.