What are Haters and Believers Saying about Bitcoin? - The Average Joe

    What are Haters and Believers Saying about Bitcoin?

    Victor Lei — Head of Research

    October 20, 2021

    bitcoin

    October 20, 2021

    It’s a big week for crypto — with the first Bitcoin ETF officially trading. But when it comes to Bitcoin, it’s hard not to have an opinion — and there is no shortage of haters.

    What haters are saying:

    • Unlike dollars, which is backed by the US government, Bitcoin isn’t backed by anything and has no intrinsic value.
    • There’s too much leverage in the crypto system — i.e. people borrowing to make bigger bets.
    • Signs of fraud-like behavior similar to a Ponzi scheme.

    The fear among many is that a crypto collapse could spread to other parts of the economy — taking down the financial system with it in a 2008 fashion. But many of these haters haven’t made direct bets against Bitcoin.

    What believers are saying:

    • Bitcoin is replacing gold — a market where 95% of the metal is used as a store of value.
    • Acceptance among large institutions and funds is increasing.
    • Bitcoin acts as protection against inflation — which has yet to be proven.

    The gold market is valued at over $11T with Bitcoin at $1.2T. If Bitcoin’s market cap caught up with gold’s, this would mean a 10x increase in Bitcoin’s price.

    Where do they see Bitcoin going? The forecasts from these two groups couldn’t be more different:

    • Haters see Bitcoin’s price going to zero.
    • Believers forecast prices as high as $500K.

    Last year, long-time believer and investor, Anthony Pomp, urged investors to take a 1-10% portfolio allocation into Bitcoin — but cautioned there will be 15-30% corrections along the way.

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