Bitcoin crash, page-8

Ask your mates what the possible downside risks are. If the answer is basically there are no risks, you know their confidence is a facade. Unfortunately most proponents of bitcoin are seemingly unwilling to acknowledge downside risks. There is no such thing as a guaranteed bet. That doesn't mean you can't take large bets on bitcoin, in full knowledge it might not pan out.

This is largely unprecedented, the volume of money being dumped into a new passive asset class that, like gold, provides no return on investment beyond speculative gains. Some observations:

- Gold price holding steady. It's not a rotation out of gold. Neither is it funds chasing a hedge against fiat inflation like gold.. otherwise gold would be up as well.
- VISA/Mastercard are rising. The worlds international transaction giants, are rising as well. So, nobody is expecting bitcoin to become the de-facto currency, otherwise these payment providers would be taking a hit.

So I find that a bit of a head scratcher. Not a store of wealth, not a currency, not producing a return. What's the appeal? Only one answer stands out. Those 10% daily returns are hard to ignore.