Many people have ALL of their savings in the Stock Market, but they call bitcoin a speculative bubble to stay away from. They say that bitcoin is not backed by anything, and, at the very minimum, is very volatile. But is this the truth?
Do you actually own anything?
Bitcoin
The only one of its kind in existence and its sole existence is provable and tradeable around the world with its integrated exchange.
Stock Market
Everyone thinks they own something
I own stock in XYZ company.
But, 99.999% of them do not own anything.
Their stock is actually owned by the brokerage house. It is only allocated to their account, and it may not even be purchased by the brokerage. It has happened that you paid $200 for XYZ corp, which is now $400 and the brokerage says, sorry, we didn't get the stock, here's your $200 back.
Further, the brokerage doesn't own the stock. They can't exchange it if they have it in their possession, so it is actually owned by the DTCC. Which has all their stock owned by Cede and Co.
You do not actually own anything, and If anything disastrous happens (such as your brokerage fails), your claim on the stock will be voided too.
Transaction Fees
Bitcoin
You pay a one time fee to move your bitcoin. You know exactly how much you will pay when you make the transaction.
Unfortunately, you will not know when it will get put into a block to be recorded forever. But paying a higher fee can up the odds that the transaction will be recorded soon.
Stock Market
When buying stocks you pay a brokerage fee. On top of that, you pay a premium because of high-frequency trading. On top of that, you are at the whim of the market makers (large investment groups that make stock prices go up and down just by shrugging.) And lets not even talk about the plunge protection team and other market rigging.
Fraud in the market
Bitcoin
There is currently fraud in the exchanges. There is shady things happening, as well as having your cryptos locked away, or tied up. But these are problems with the exchanges. Automic swaps are coming as well as decentralized exchanges.
Already you can see who the whales are. And you can quite easily tell where their buy/sell positions are. Its open for all to see. And, when you actually exchange on the block-chain, it is yours, no ifs, ands or buts about it.
Stock Market
There is much more stock traded then there are shares of the company outstanding. Many consider that if the stock market closed, and they audited all of the stock, that there would be found that there is 4 to 5 shares traded for each actual share. Let that sink in for a bit. You are playing a game of musical chairs, when you thought you were investing in something solid.
Further, there are three huge forces moving the markets. Market makers (extra-hugely-large hedge funds), High-speed traders and The Plunge Protection Team. Each of these entities move the market whenever they want. They can turn off buying whenever they want. The Dow plunged 666 points on the 33rd day of the year? That was clearly just chance, right? Everyone trading at that moment noticed that buying just stopped. Of course, it could have all been coincidence, but...
Not only does bitcoin beat the stock market in everything that the stock market is supposed to be, it will also whip the stock market in capital gains. Then, after that, Veritasium will come, clean up all that's left and set up shop.
IMHO, the only thing keeping the stock market alive right now is a bunch of old people who may kick the bucket before getting on the bitcoin wagon.
One thing you might mention.
Steem is different in that it's an origin of wealth.
All I've invested is my time. (no monetary investment)
so it's a win/win. If I get one penny out...I've received an infinite return on my investment
BECAUSE
if I wasn't on Steemit...I'd be on Facebook or some other Social Media..
Makeing money for THEM.
on Steemit my time is worth something to ME.
that said..the normal rules of investing don't apply as stringently when all I can do is win big or win small. Even if I lose everything..what have I lost?
me too. All my crypto started with steem, every penny worth. It's changed my life in many ways.
I too like steem/steemit for these reasons.
And I am looking forward to what cryptos/blockchain will do to the other industries.
So true. So scary.
It is indeed. Thus, I must write about it.
And thanks for the resteem.
Clarity. I like that. good post with important information for us newbies still coming to terms with the crypto world. Thank you from Thailand.
I like the way you make it simple to understand, keep up the good work.
Feel free to follow me as I will
This Really nice one and true you always make a good post sir thanks for sharing sir
I like your work dear
You and analyst @salahuddin2004 are two top analysts of cryptoworld.
His prediction success rate 98%
But I like your work most. Keep posting
i like this Thanks
People used to say why do I need a computer, when I can write things down. There is room in the world for both! Lol. Joy
Such a great post! upvoted