Anyone remember this:,000

Boosters are always the same: extrapolating from yesterday in a straight line while ignoring the fundamentals. So let’s ask why Bitcoin will fail spectacularly. First of all, it’s “value” is the result of momentum investing, which is simply people piling in because it’s price went up yesterday. That’s the basis of every financial bubble in history. Second of all, it’s a hollow game: it’s maximum theoretical transaction per second rate is 27. Yes, twenty-seven. Today it barely manages 3.8 transactions per second. Worldwide. To put this into perspective, VISA alone handles 65,000 transactions per second. I could go on and on pouring icy-cold water over the Bitcoin hype but these two points alone should be enough to deter anyone with more than no functioning neurons in their frontal cortex from buying Bitcoin.

Of course that leaves plenty of people who will be “certain” they’re making a smart investment. Just like everyone who’s been burned by every bubble in history because they listened to the hype without bothering to attempt to understand the reality.

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Anyone who enjoys my articles here on Medium may be interested in my books Why Democracy Failed and The Praying Ape, both available from Amazon.

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