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RE: German Central Bank Puts People Off Bitcoin, Causing Them To Miss Out BIG (The Cryptoverse #264)

in #bitcoin8 years ago

I've just read the original article (https://www.welt.de/finanzen/article164309456/Bundesbank-warnt-vor-Internet-Waehrung-Bitcoin.html).

The headline used (and also the headline of this post) is a bit misguiding. However, this is due to the nature of mainstream media, which is the real issue. Die Welt is a quite conservative newspaper whose readership is also more conservative and probably to be found in the older demographics. That newspaper can simply not afford to give investment advice for a volatile asset class.

And that's the thing. Mr. Thiele is actually making true statements, and was probably asked very specific questions by the journalists. Those questions are not mentioned in the article though, but you know how mainstream media journalists are...

bringing back some neutrality:

each statement given by Mr. Thiele in itself is correct or marked as his opinion. also, what he says is actually very general.

  • Bitcoin is a speculatory object, have a look at its volatility. (true, even though most of us wish it to go nowhere but up).
  • bitcoin is not a suitable store of value, again due to its volatility. (I'd say precious metals are a proper store of value, but also quite volatile. on bitcoin we simply dont have enough historical data to prove otherwise. I wouldnt advise my grandmother either to put all her savings in bitcoin now).
  • everyone who invests their savings in bitcoin must be responsible for their actions (as with every investment in every asset class... )
  • they advise against using bitcoin as a store of value (yes, because the nature of cryptocurrencies is very volatile).

he goes on to make statements about the technology and bitcoin in general:

  • blockchain technology is very interesting, however it must support anti money laundry laws (my comment: all banks are actually looking at how to implement blockchain, at anti money laundry and know your customer rules! look at china. the only blockchain in line with their laws and rules is antshares, not the bitcoin blockchain, not the ethereum blockchain).
  • bitcoin based on the transaction numbers is a niche product, with only 77 million transactions per day in Germany vs. 350 thousand bitcoin transactions.

what the article on cointelegraph did not mention is the last phrase of the original article which says that the German central bank in cooperation with the German stock exchange have built a prototype for transfers based on the blockchain.

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The thing is you can't get past the first hurdle. Bitcoin is a speculatory object. That's false when taken on its own.

When that statement is made it is as if that is ALL Bitcoin is, which is false.

Bitcoin is only a speculatory object because that is what people DO with it.
This also means Bitcoin is many other things because of what people do with it.

A peer to peer digital cash system.
A safe haven.
A global currency.
The first ever example of digital scarcity.
The most secure network in the world.

Bitcoin is all of these things, so when you highlight one aspect and intentionally ignore the others, that's how 'the story of Bitcoin' is manipulated to make people believe things that are not true.

The final point I made in the video stands no matter what. Whenever someone makes a claim, verify or falsify it for yourself.

I even signed off by giving a list of questions to ask, such as 'what else is Bitcoin that the central banks are not talking about?'

I have ventured a few answers in the list above.

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