Just a while back, there was nothing cooler than saying that you have invested in cryptocurrency. The mere mention would have elicited feelings of admiration and awe. That was so 2017.
The public sentiment has turned against cryptocurrencies since its meltdown and downward spiral in 2018. Once seen as an opportunity to make money very quickly, many people are now calling it a scam. At the time of publishing this post, India is making cryptocurrencies illegal in its payment systems, Visa and Mastercard are imposing more fees to buy cryptocurrencies.
So, just for fun, let’s see what people were saying about crypto before the doom and gloom set in.
1. “Blockchain is the tech. Bitcoin is merely the first mainstream manifestation of its potential.”
Marc Kenigsberg, Founder of Bitcoin Chaser
Marc Kenigsberg is an advocate for cryptocurrency in general, not just Bitcoin. He is also, however, one of the world’s leading Bitcoin affiliates. This quote by Marc Kenigsberg, the founder of Bitcoin Chaser, is a reminder to many of us. Bitcoin is a mere by-product of the underlying blockchain technology that everyone is heralding. Yet, many cryptocurrency investors are oblivious to that fact and only focus on the potential upside from investing in cryptocurrency.
2. “[Bitcoin] is a remarkable cryptographic achievement… The ability to create something which is not duplicable in the digital world has enormous value…Lots of people will build businesses on top of that”.
Eric Schmidt, Executive Chairman of Google
Eric Schmidt has seen some of the world’s greatest tech innovations as executive chairman of Google for so many years. What more has he not seen? Thus, it says a whole lot when someone of Eric Schmidt’s status comes out and call cryptocurrencies “a remarkable cryptographic achievement”. Eric Schmidt’s comment also says one thing about the future of blockchain and bitcoin: There’s money to be made and they’re here to stay.
3. “Bitcoin is the beginning of something great: a currency without a government, something necessary and imperative. But I am not familiar with the specific product to assert whether it is the best potential setup. And we need a long time to establish confidence.”
Nassim Taleb, Statistician, Former Trader, Risk Analyst and Author of The Black Swan
The world is used to using fiat currencies that are backed by central banks around the world. But did you know that these fiat currencies are almost worthless without the backing of central banks? Cryptocurrencies like Bitcoin are trying to “disrupt” that. In essence, cryptocurrencies are currencies that do not require the backing of a government. If we can accept that idea, it could be revolutionary for the human population. That being said, Nassim Taleb is sceptical whether such an establishment can take place in the short term. It might not even happen 20 years down the road.
4. “Bitcoin will do to banks what email did to the postal industry”
Rick Falkvinge, Founder of the Swedish Pirate Party
If there is any industry that is in danger of being replaced, it is the financial industry. Politician Rick Falkvinge predicts that cryptocurrencies will disrupt the financial industry so badly, it will leave banks in search of new business models.
5. “I do think Bitcoin is the first [encrypted money]that has the potential to do something like change the world.”
Peter Thiel, Co-Founder of Paypal
It takes one to know one. And who understands currency better than the guy who wanted to create a new currency for the world in the early days of Paypal? The rise in price of Bitcoin to sky high prices could be foretelling of how much it could change the world. Ask Peter Thiel if you don’t believe.
6. “Stay away from it. It’s a mirage, basically”
Warren Buffett, CEO of Berkshire Hathaway, 14 February 2014
Despite cryptocurrencies beating his Berkshire Hathaway share price in terms of returns in 2017, Warren Buffett remains adamant that he won’t touch them. Warren Buffett, along with a few other industry thought leaders, have been vocal about their dislike of cryptocurrencies. They certainly do not classify cryptocurrencies as an investment asset class. Neither do they encourage investors to invest in one. Nobel-prize winning economist, Paul Krugman, is also in the same camp as the world’s greatest investor. Paul Krugman once said that “Bitcoin is evil” in 2013.
7. “We don’t really know how this coin is created. You can’t have a functional money without a basic transparency. Unless you are addicted to volatile trading for the sake of trading, stay away from the Bitcoin. Thankfully its plunge will be a salutary caution to most folks.”
Steve Forbes, Chief Executive of Forbes
Nobody knows where cryptocurrencies come from and how they are being created. While some people have absolute trust in the mathematical framework that cryptocurrencies are built upon, Steve Forbes isn’t one of them. Steve Forbes believe that unless we are able to uncover how the coins are being created one day, we will never accept them as functional money. For those of you with a faint heart, take Steve Forbes’ advice and avoid cryptocurrencies.
8. “If you’re ‘stupid’ enough to buy bitcoin, you’ll pay the price one day.”
Jamie Dimon, chairman and CEO of JPMorgan Chase
Jamie Dimon is perhaps the most vocal and ‘kind’ soul out there that is trying to save the world from losing all their savings. He doesn’t dice or mince his words when it comes to cryptocurrencies, especially Bitcoin. The CEO of JP Morgan believes that the only value of Bitcoin is what another guy is willing to pay you for it. In short, the greater fool theory is the only thing that is keeping Bitcoin prices up.
The naysayer may have won the first round…
But in the long term, will they still be right? We don’t know. While the underlying blockchain technology that powers cryptocurrencies is sure to change the future, we can’t be sure which cryptocurrency will be around in the next few years.