to cypto or not to crypto - part 2

i have just attended a crypto investor programme with Equities Tracker and am now bona fide bitcoin expert... i hope > <

so, let's test me. i welcome any question on the subject!! 

a friend did ask - where did bitcoin's value come from? 

this line of questioning is probably best done in person as different people have different perspectives. but i will attempt it anyway. so, where do any of the fiat currency's value come from? it comes from its ability to serve as money. what is money? money is something that would be durable, portable, divisible, uniform, limited in supply (hence ability to store value) and acceptability. why would you accept the US dollar but not the venezuelan bolivar as payment. it is because the venezuelan bolivar is not limited in supply (hence unable to store value). then again, the US dollar is not limited in supply. as a matter of fact, then US has been printing money irresponsibly - resulting in a worldwide inflation. so US dollar's value is simply attributable too many people are holding US dollar and may not (at this point) want to see it fail - and not its ability to serve as money. Its value lies, currently, in its acceptability.  

so, bitcoin - durable and portable as it lives on the internet, divisible up to 8 decimals (a.k.a 1 satoshi), uniform, limited in supply to a maximum of 21million BTC scheduled to be mined by 2140 and acceptability has been growing, evidenced by the growing infrastructure that support BTC. 

then why do the governments and the banks discredit the coin and say it is a scam? 

control. 

governments and banks have been the centralized authority for money all this time. they decide how much money to print (and in effect, how much and when to rob the people). with bitcoin, it is decentralized. no one party is able to control bitcoin. there is this fear of the loss of control and therefore, governments and banks have attempted to discredit bitcoin. that is, until they are ready with their version of "crypto currency". at least that is what they are going to try to get people to believe. they are going to try to get people to believe that their digital money is crypto currency - when in fact it is a world of difference. 

before buying any crypto currency - read the white paper. because there would be no authority for you to go cry to should you find your money missing and if it is missing - it is probably because you were careless with your passwords or you were not aware of the terms already stated to you on the white paper. before buying any "crypto currency" from the banks or governments - check the headlines for what they used to say about bitcoin. if they claim it wouldn't work before, why would they now have their version of the same? people do have very short term memory. thanks to branding, we choose to believe the banks although they have lied to the people over and over again. 

why would the bitcoin price fluctuate this way if it was of value?

well, it is currently finding its equilibrium. being new (and growing), its value is still uncertain because there are skeptics and there are many powerful people who would prefer if it does not exist. but if you believe that the existing monetary system is not working and that there is value in bitcoin, then if you are a value investor, you would realize that this is a value-price divergence. and it is a huge divergence. as bitcoin is not an equity, it is closer to a form of money and so, more like forex than stocks, there is no secondary value (correction for my previous post). its eventual value would depend on how widely it is accepted. the current valuation fluctuates as such because the number of people trading on it is relatively small. as the institutions are currently obviously preparing to battle bitcoin with their own "crypto" (and scam the people - again) and probably have already secured bitcoin for themselves, the subsequent waves would be interesting. 

there are so many coins out there. how do i know which coin to invest in?

similar to stocks - there are so many companies out there, how do i know which one to invest in? do your own research. find your own country's Equities Tracker. look for research that would provide you with facts. read the white papers. 

On another note, the subconscious mind is so powerful. Uncle Jimmy's words has really gone into my head and obviously, deeply ingrained in his sons'. He found a way to manage through investments and i definitely believe in value investing. Uncle Jimmy has always been all about power to the people. and supporting bitcoin is all about power to the people. his sons are perpetuating his legacy -  which is pretty cool.