Response to M Faber's opinion 'Bitcoin could be worthless if the system crashes'

[iraszl]

In short: He's right. Bitcoin could be worthless if the system crashes. But nothing suggests it would and nothing is absolutely safe anyway. All assets have various levels of risks and opportunities. Even gold or the US$ that Faber thinks to be the safest has systematic risks.

I discuss gold, US$ and Bitcoin in more detail in my post.

What do you think?

[atp1916]

M Faber is yet another clueless old-world Warren Buffet type who does not understand the bottom-line technology behind the protocol - and, by extension does not perceive the disruptive impact it will have upon the payment processing business.  The Bitcoin protocol technology and derivatives will all but eliminate the yearly $1.5 trillion dollar transaction fee "business". That's 1.5 trillion reasons right there why this guy is wrong.

It's ironic that only now is he throwing his opinion into the ring when Bitcoin is in the greatest hot pan it likely has ever been.  Cowardice as usual.

[iraszl]

M Faber is yet another clueless old-world Warren Buffet type who does not understand the bottom-line technology behind the protocol - and, by extension does not perceive the disruptive impact it will have upon the payment processing business.  The Bitcoin protocol technology and derivatives will all but eliminate the yearly $1.5 trillion dollar transaction fee "business". That's 1.5 trillion reasons right there why this guy is wrong.

It's ironic that only now is he throwing his opinion into the ring when Bitcoin is in the greatest hot pan it likely has ever been.  Cowardice as usual.

These guys have a lot in stake to keep the old money system going unthreatened by anything.

[GTO911]

Yes, it all depends upon if the virtual system is working or not

[blatchcorn]

If any system crashes it is worthless. Ironically, if the system crashes for Bitcoin, the underlying protocol itself must have some intrinsic value

[aminorex]

gold is worthless if the system crashes that far.  you need brass and lead in that case.

[Brilliant]

M Faber is yet another clueless old-world Warren Buffet type who does not understand the bottom-line technology behind the protocol - and, by extension does not perceive the disruptive impact it will have upon the payment processing business.  The Bitcoin protocol technology and derivatives will all but eliminate the yearly $1.5 trillion dollar transaction fee "business". That's 1.5 trillion reasons right there why this guy is wrong.

It's ironic that only now is he throwing his opinion into the ring when Bitcoin is in the greatest hot pan it likely has ever been.  Cowardice as usual.

Quoted for truth.  They don't understand it so they dismiss it.  The future is cryptocurrencies whether it be Bitcoin, Litecoin, the altcoins, or some other future protocol.  This is very reminiscent of the newspaper owners many years ago that dismissed the Internet but as we now know the Internet is best method of exchanging news and information there is.  Cryptocurrencies are to money what the Internet is to informatoin. 

[johnytelevision]

We need opinion on other random people opinions right now ? I don't even know who is this dude.

[bitsmichel]

if if if if if....

[escrow.ms]

We need opinion on other random people opinions right now ? I don't even know who is this dude.

Google Marc Faber

[nostradamus]

M Faber is yet another clueless old-world Warren Buffet type who does not understand the bottom-line technology behind the protocol - and, by extension does not perceive the disruptive impact it will have upon the payment processing business.  The Bitcoin protocol technology and derivatives will all but eliminate the yearly $1.5 trillion dollar transaction fee "business". That's 1.5 trillion reasons right there why this guy is wrong.

It's ironic that only now is he throwing his opinion into the ring when Bitcoin is in the greatest hot pan it likely has ever been.  Cowardice as usual.

These guys have a lot in stake to keep the old money system going unthreatened by anything.

Of course Bitcoin would be worthless in the event of a total system failure. That's a totally coherent observation. The relevant response is that 1) Bitcoin has a multi-billion dollar target on it's back, and has weathered every attack thus far. 2) Rather than be dogmatic, let's put some energy into strengthening the protocol to make such a crash further unlikely. One cool idea: http://www.coindesk.com/core-developer-bitcoin-node-space/

[jamesc760]

Here's a quote from a wikipedia article on Marc Faber, http://en.wikipedia.org/wiki/Marc_faber:

"The federal government is sending each of us a $600 rebate. If we spend that money at Wal-Mart, the money goes to China. If we spend it on gasoline it goes to the Arabs. If we buy a computer it will go to India. If we purchase fruit and vegetables it will go to Mexico, Honduras and Guatemala. If we purchase a good car it will go to Germany. If we purchase useless crap it will go to Taiwan and none of it will help the American economy. The only way to keep that money here at home is to spend it on prostitutes and beer, since these are the only products still produced in US. I've been doing my part."

Seems like a smart person with solid education and work experience. However, he's been predicting economic "doom" for a long time and sometimes he's bound to be correct.

Nothing new here. Move along.

[Bit_Happy]

In short: He's right. Bitcoin could be worthless if the system crashes. But nothing suggests it would and nothing is absolutely safe anyway. All assets have various levels of risks and opportunities. Even gold or the US$ that Faber thinks to be the safest has systematic risks.

I discuss gold, US$ and Bitcoin in more detail in my post.

What do you think?

I think he is ignoring the lady and kissing a small giraffe.
Why?

[waldox]

fiat will crash

bitcoin is anti fragile
it will remain as long as there is electricity in the world

[zimmah]

That's like saying water freezes when it's cold. Provided the atmospheric pressure is not too low.

And besides, bitcoin is unlikely to crash (the system as a whole) that's like saying the internet will crash.

Oh by the way, facebook will collapse when the internet crashes, better sell all stock!

[freedomno1]

Decentralized network all transactions are recorded in the Blockchain
Longest copy survives
Even if the internet dies
Although crashes are more like people breaking it on purpose the first two are non-factors unless its a critical cryptography error.