Bitcoin is over-hyped and has no real value – South African investment firm

aybbleek

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Hamster

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The scariest part of all of this is the hardcore fanaticism of those defending cryptocurrencies and they are probably the people with the bulk of their investments pushed into it.
 

Xzib1t

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Yeah, no reputable investment firm are going to look at cryptocurrencies here, chances are the FSB will have a field day with them if they did.

It's just too risky even for the highest risk fund categories imho.

This is key when valuing an asset:

zero intrinsic value

And I'm afraid I must agree with them.
 

The_MAC

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Non-traditional investment methodologies are required for something like this. Unfortunately this could one day become a Netflix & Blockbuster scenario

They will get Uberised in the hardest way..
 

Fulcrum29

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The scariest part of all of this is the hardcore fanaticism of those defending cryptocurrencies and they are probably the people with the bulk of their investments pushed into it.

Like the Blockchain Alliance and Enterprise Ethereum Alliance?
 

Ancalagon

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Whoo boy

Herman said a currency is more than an exchange medium. A currency is an entity regulated by a government and managed by a central bank.

Wow. Does he not know how currencies evolved over time? We moved from barter and exchange to precious metals such as gold and silver. By his logic, gold coins were never currency at all. Not even an early form of it.

“In fact, cryptocurrency is the playground of criminals revelling in the anonymity.”

This really smells like Rooi Gevaar or Swart Gevaar. Crypto Gevaar?

Next we will be hearing things like bitcoin is a stepping stone. You mine one bitcoin and next thing you know you are in a ditch with both kidneys removed to pay for a Nigerian gangster's mining rigs.

“Cryptocurrencies are not assets. They are nothing more than loyalty points for extravagant computer games with absolutely zero intrinsic value,” said Herman.

Flip what a retard. You would think someone who is in the business of looking after his client's money would do a better job investigating cryptocurrency so that he can understand it.

All loyalty point programs are in fact more like the currencies he claims to love - they are regulated and managed by a central entity, in each case the originator of the loyalty points. FNB for eBucks, Discovery for Discovery Miles etc etc. And they are regulated under advertising regulations, probably financial regulations too.

The difference is, I cannot use my eBucks to buy a single dollar from an international exchange. I can however use my Ethereum to buy dollars from an international exchange.

As for zero intrinsic value - the dollar has no intrinsic value either. It isn't based on the gold standard anymore - it is a fiat currency.

EDIT: Here is what Investopedia says about fiat currencies:
Most modern paper currencies are fiat currencies; they have no intrinsic value and are used solely as a means of payment.
 
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Solitude

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“Cryptocurrencies are not assets. They are nothing more than loyalty points for extravagant computer games with absolutely zero intrinsic value,” said Herman.

Do normal currencies have any intrinsic value?
 

Thor

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That is why you do not invest with Citadel. Sad company badmouthing, because the missed the boat.

Then they end with this gem “In fact, cryptocurrency is the playground of criminals revelling in the anonymity.”

Top point of ignorance.
 

akescpt

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i think the people making money feels it is real...good that they cant touch it and make it like everything else and make themselves central to the outcome. **** off and let it be. must make them jizz to think there is so much money and they cant tax customers for any of it...

need a roll eyes emoji here...
 

Thor

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They will get Uberised in the hardest way..

This. Not old mutual - they are just playing safe in that article. "Watch this space."

As for Citadel. Oh the Uberization will hit hard and swift.
 

Hamster

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Like the Blockchain Alliance and Enterprise Ethereum Alliance?

Meant the average "investor". There was a thread about similar comments from Morgan Stanley and the guys went completely nuts in that thread.
 

Hamster

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That is why you do not invest with Citadel. Sad company badmouthing, because the missed the boat.

Then they end with this gem “In fact, cryptocurrency is the playground of criminals revelling in the anonymity.”

Top point of ignorance.

So what happens if Japan or those countries that officially accept bitcoins as a currency rescind their move and declare BTC "not legal" because it was a factor in the spike of organised crime and smuggling?
 

Fulcrum29

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Meant the average "investor". There was a thread about similar comments from Morgan Stanley and the guys went completely nuts in that thread.

Oh yah, I can agree. At this stage, it is still very much a gamble, but at the current rate it is lucrative. George Herman is in my opinion right and wrong. Cryptocurrencies in its current shape is a loyalty system, that is until the day it is in actual use, and this is where the Blockchain and other Alliances are coming in to accelerate the process, also knowing that Asian countries like China, Korea and Japan are proactively working it into their banking systems with government support. JP Morgan is currently working close with Zcash to integrate the technology into their own enterprise Bitcoin blockchain as opposed to Citadel’s view on it being a criminal playground. So, yah, there is much potential, but to relate it to extravagant computer games with absolutely zero intrinsic value is silly.
 

eg2505

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dont understand these "experts" I think they crying cause they missed the boat big time......

if I was an expert that studied economics and finance, I would at least try to understand my foe,
as this foe will eventually wipe them off the map completely,

I mean eventually these "experts" will realize there is money to be made and not the illegal kind,

just like when the internet and bit-torrent first came out, nobody but nerds and geeks understood what it is,
then eventually they did and everybody including grannies are torrenting on piratebay....

and now big record companies and production houses are doing all sorts of funny things to earn shareholders money....
 
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