His response is that he can’t call them an investment for many reasons, and said that they are currently a form of hype and gambling (listen from 18:45 onwards). Why, because one buys bitcoins betting that in the future someone else will buy them at a higher price. The price is driven by factors outside traditional investment rules.
So not only are many advertisements for bitcoin a scam, but currently maybe cryptocurrencies themselves are as well.
Another aspect is when ‘collectables’ crash in value one still has the sports card, car, artwork, whatever. Imagine trying to frame their bitcoin to admire it if/when its value goes to [essentially] zero?
Yes bitcoin and other virtual currencies are not investments in the traditional sense.
But then buying gold or silver or diamonds, or art works, are not investing either.
In the share market there are many gambling purely on whether the value of something will go up, or perhaps down.
With bitcoin in particular, since there is so much hype around it, the ones who make money regardless of the price going up or down are the traders. They get a slice of the buying and selling action through commissions on converting real money to virtual money and vice versa.
Maybe they should first understand that SNL is largely a Satirical or Sarcastic Comedy take on News and Current Events show. Perhaps he was being somewhat sarcastic when referring to Dogecoin as a hustle. Maybe there was some shorting in the market as well, when somebody losses often someone else gains. Imagine the delight of those who sold as the price went up and then have bought again when it crashed, I can almost see them slavering at the thought of the next boom bust cycle of this cryptocurrency.
@Fred123 it seems that Elon is very happy to accept Dogecoin for SpaceX…maybe the drop is good for them in that it will take more of the coin to buy a flight than it did previously…now to await the value rise again, who will financially benefit??? What hustle are we seeing, My opinion is that it just might be another type than the coin itself or as I noted before that some don’t realise the concept of SNL.
Those who listened on SNL to make profits by their financial decision about Dogecoin appear not to understand the idea of the show. They got burnt because they took comedy for real life. Told you that there would be a rise again.
To mine/verify the blockchain of a Bitcoin transaction these days uses huge amounts of computing power and thus electricity. Only way to sort of reduce the pollution of the electricity production is to use renewables. I don’t think many are using renewable energy in their quest. Tesla aren’t dumping Bitcoin they just won’t use them until mining uses only renewable energy. Dogecoin are more environmentally friendly in energy usage.
