“Modern Times” with Charles Chaplin. A 1936 film. A great cinema classic that shows the devastation of the working class during the Great Depression. There are many memorable scenes in this feature film. I have seen this magical work many times and I always enjoy it. However, there is one scene in particular that could describe our current situation. I am referring to the price of Bitcoin.
I am talking about the scene of Charlot (the protagonist) on roller skates blindfolded. We are on the top floors of a large department store. And there’s a big hole in the middle of the building, but the character doesn’t see it. Then Charlot begins to walk a short distance from the void. Every round is a great fear for the viewer. Nothing actually happens, but the risk is very low. And we’re on our nerves with so much tension. It’s blindfolded Bitcoin on ice skates that tackle the abyss. Aaah!
Now let’s talk about the week’s most read news.
I’ve always been amazed to see how some people recommend Bitcoin without reservation. Too often, Bitcoin is portrayed as the eighth wonder of the world, and basics like volatility and risk are downplayed. Some even recommend Bitcoin as a safe haven. With these eyes, you can see how 25-year-olds buy Bitcoin with US credit cards for $ 15,000, $ 18,000, $ 19,000 in December 2017.
Crypto Twitter and the media read that Bitcoin would reach $ 50,000 by the end of 2018. In the frenzy of the time, anyone who mentioned the word “bubble” was called blunt. It was a fever Gold and greed had a blinding effect. I didn’t know of $ 100,000 in debt, but I did know several of $ 10,000. These young “visionaries” don’t want to know anything about Bitcoin today. They remember these crazy months of 2017 with anger and disappointment. This is a space that needs more voices.
Personally, I never recommend buying Bitcoin. I explain to Bitcoin what is different. And I start with the warnings. I always present it as a risky good, not for anyone. For example, never go into debt to buy Bitcoin. Never buy Bitcoin with the money we need. And only buy a small percentage within a diversified portfolio. Always buy very cheap. What’s more, I say buy and give the money for lost. Do not review your portfolio for 5 or 10 years to see how it is. (I’m exaggerating) Of course, you don’t have to be a genius to know that the indebted youth ended very badly in December 2017 and that the people who carefully listened to the warnings are doing very well.. In my opinion, Bitcoin is not for everyone and the attitude of some Bitcoiners among Herbalife sellers is extremely harmful and counterproductive.
The government against Bitcoin. Weapons against code. Obsession with the blessed “disorder” is the easiest way to cause trouble. It’s the classic story of the stupid boy looking for fights he can’t win. The truth? The narrative “disorder” is very expensive. The rebels go in search of trouble and usually find it. Much better than fighting and destroying is creating. This eternal struggle with banks and governments is a real waste of energy. All of this energy must be invested in improving our property. Why compete with the dollar? Why fight a fight with governments and central banks? Bitcon is something new in the new market. How can you insist on the old labels and formulas?
Bitcoin is a currency or not? Who cares. Many are offended when it is said that Bitcoin is not a currency or money. Why? Because deep down we are afraid to be different. We want to be part of it and we want to be like the others. We want to be the “new dollar” or a “digital gold”. But no. This is Bitcoin and it is something new. Bitcoin is bitcoin. For the dollar, what is the dollar and for Bitcoin, what is the Bitcoin. We know that it is very difficult for Bitcoin to go to zero. At least not in the coming years. But fights hurt the price. This is a new market and you don’t need fights. You need alliances. Bitcoin must be a friend of banks and governments without losing its essence. Builders don’t need enemies. “To disrupt” is an obstacle to growth. Let’s build bridges, not walls.
Since we have futures, many have tried to explain the behavior of the price on the spot market (in cash) with what is going to happen in the future market (derivatives). So far we have only had the mysterious whales to explain the “strange” behaviors. If something strange or surprising happened, an article about the role of a giant whale would appear in the middle of it within a few hours. But now we have another joker: the course of the future.
Of course, this Forbes article is different. This is not an event that happened a few hours earlier. Here is a ruthless reference to an event that will occur in the future. Friday June 26th. A billion dollars. Bitcoin at 11 thousand. You need to be vigilant for this Friday. Lets see what happens.
This was not a hack for the Bitcoin network. As such, Bitcon was not affected. The hacker managed to discover a private key, but with the help of its owner. What is called social engineering in the industry. The topic published several starting words and the hacker managed to decrypt the rest with a lot of time and effort. That brings us the moral of this story. Human error.
Security is an issue that many of us neglect, but oversight can be extremely costly. It is true that we can lose our currencies on centralized exchanges. It is also true that we can lose our private key due to our clumsiness. Ultra-secure systems are not always the most convenient. Assume that in the future a large pension fund or state reserves will be compromised because the private key will be lost. The misfortune! It would probably be necessary to do a hard fork. The political and social pressure would be too great. For this reason, we need to build an intelligent infrastructure that addresses these problems. The custody problem is the key. Insurance, backups, etc.