My new hobby of correcting crypto FUD hack journalism began when my bro became interested in blockchain investing. Now he regularly sends me articles from mainstream hack journalists for me to dissect. It's quite fun.
My latest victim is Mr. Jim Edwards over at Business Insider who wrote this impressively uninformed article, Bitcoin's illiquidity is going to be a huge problem when the bubble bursts.
Let's begin:
6 Clarifications in response to Bitcoin's illiquidity is going to be a huge problem when the bubble bursts by Jim Edwards
Very true Jim, Network congestion and scalability of ETH and BTC is a problem at the moment. However, that will change. You know, technology improves over time. If you can't wait a year or two, just use a faster blockchain, like Steem for example. ;)
"40% [of Bitcoin] are held by 1,000 people. Those few major holders can crash the market whenever they want." Is this true? It's possible but not inevitable if there are enough buyers to absorb the supply. I'll give you the benefit of doubt on this one Jimmy but know that if those whales are dumb enough to empty their holdings, I'll be there to buy them on sale.
"As anyone who remembers the market crashes of 2000 and 2008 knows, these things happen fast. Billions get wiped off the market in minutes. People who need to cash out now, but who are an hour or so behind the news, can lose their shirts."
Mr. Edwards, you're confusing sending and receiving with transactions on an exchange, which take a second or two. If someone is holding in a wallet and isn't diversified then, yes, they could lose a lot of money. It's also important to note that that crash in 2008 was a buying opportunity of a lifetime. Look at the markets since then."It is brutal. And blockchain just isn't equipped to deal with it." Mr. Edwards, now you're confusing blockchain with Bitcoin. This is your biggest crime in the article because blockchain is equipped to handle network activity of an equal scale as Paypal or MasterCard (how fast is Graphene again?) or at least they are coming closer and closer every day. How fast was the internet at first? You don't seem to grasp the concept of technological progress.
"By comparison, stockbrokers and banks transact trades in less than a second, usually for less than $10." Again, Mr. Edwards, you need to do better research before sparfing out this dreck. You keep confusing transactions with trades on an exchange which are pretty damn fast and way, way less than $10. If you're looking for a currency that is cheap to transfer, there are plenty of better choices than Bitcoin. Like, oh I don't know, Steem for example.
[6]. Ted from Google tweets, "I had to send pictures of my driving license and passport to some random website, which for all I know could be about as trustworthy as MtGox," No Ted, you did not have to do this. This was one option. There are a few trustworthy exchanges but you can always buy Bitcoins locally or from an ATM. Mr Edwards writes, "It took him days. 'Is it really money if you can't use it nor convert it to anything else?' he lamented." Ted, Ted, Ted. You are so green. I just converted some Bitcoin into Ethereum and some USD into OmiseGo this morning. It took me 5 minutes. I can spend it anytime I want on anything in the world.
Mr. Edwards I urge you to watch this short video which should help to illuminate you. Don't worry, a five year old can understand it (Ted from Google, you could probably use this education as well):
Thanks @rok-sivante for finding this video.
It took my bro a couple minutes to transfer Ether into a Ledger Nano this morning....so Mr. Edwards, pretty much every avenue you have taken in pursuit of FUDding me has failed phenomenally. Next time, spend a little more time doing journalism instead of answering your editor's cry for crypto crap.
--
Sky_pal
just a tip, don't 100% power the posts get some SBD the earnings are multiplied by the price of it since as far as the blockchain is concerned one sbd is one dollar, but we know better, so whoever pumped the dollar in bittrex :) good job :D
hahahahh lolzz :) awesome video as well :D :D :D .... :D lolz didn't know how doge was born :D lolz I love bubbles too :D would be nice if he went over at bitshares :)
Yup there will be a lot of FUD and BS over the internet, media moguls are doing it for decades this is just a new story they need to spin :D ...