Bitcoin Criticism Answered – Bitcoin USD (Cryptocurrency:BTC-USD)

Introduction

I try to read as many comments on articles that I write as possible. One reader asked why people were not addressing certain concerns posed about Bitcoin (BTC-USD)(COIN)(OTCQX:GBTC), specifically statements by the Fed Chairman, BIS and others. It it my intention to write articles that you want to read; so, this one is for you @soajustice.

Fed Chairman Powell on Bitcoin

Jerome Powell told members of Congress that “relatively unsophisticated investors see the asset go up in price, and they think: ‘This is great; I’ll buy this.’ In fact, there is no promise of that.

– CNBC, July 2018

First thing, there is no promise that any investment will go up. Relatively unsophisticated investors will make many mistakes, as will the sophisticated ones. The only real differences between sophisticated and unsophisticated investors are the ability to strategize and quantify risk (and their net worth if you’re using the textbook definition).

But, instead of just saying “Bitcoin is risky,”…