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Don't Hate Bitcoin, It's a Free Market Construct! But "Wishes Aren't Fishes"

• https://www.themaven.net

There is a huge difference between disliking Bitcoin as an investment and disliking Bitcoin as a construct.

Some of the flaws of Bitcoin are by now well-understood: It does not scale, it is nearly useless for routine purchases, and its use of energy in mining is problematic in many ways.

Forbes contributor Peter Tchir says You Don't Have To Hate Bitcoin To Think It Is Overvalued.

I continue to think Bitcoin and other cryptocurrencies have further to fall and I am unlikely to become bullish until Bitcoin drops below $5,000.

The basic premise is that speculators got way ahead of themselves in terms of the adoption rate. The adoption rate has slowed by every metric I look at, while speculators are still stuck holding onto cryptocurrencies that have declined in value. Virtually every purchase of Bitcoin since the spike higher around U.S. Thanksgiving is now losing money. Those holding cryptocurrencies bought with credit cards are feeling the additional pain of interest payments if they bought using credit (which scares me as a concept as I analyzed here).

While new adopters are happening at a declining rate, the amount of regulatory and tax scrutiny is increasing.

Despite being bearish, I believe that there will be value in some cryptocurrencies, even Bitcoin itself, and some of the ICO's - which seem to be viewed with a high degree of skepticism right now (justified in many cases).

Which ICO will be worth it? Which crypto should we back? When should I buy Bitcoin? These are all questions that we will continue to try and answer.

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