Partha Chakraborty-
Partha Chakraborty is an Indian-born immigrant; a naturalized US Citizen since 2018. Educated in India and at Cornell University, Partha is currently an entrepreneur in water technologies, Blockchain, and wealth management in the US and in India. The views expressed are his own.
What do you call an investment strategy whose marker of success is simply being able to offload the wallet to the next fool before prices move against you? You call it a Ponzi Scheme. How does an investment rise one hundred percent and then drop by half, now back to its starting value, in about nine months without any rhyme or reason? You call it a Tulip, and, today you may call it Bitcoin.
Beyond a possible occurrence of illegality, both are more likely to happen if the underlying asset defies traditional measures of valuation possibly because the asset does not produce cash flow, or because it is not used in the creation or maintenance of another productive asset. That’s the reality for Bitcoin.
I am not saying no Bitcoin project ever made money. Projects aimed at creating financial ecosystems based on Cryptocurrencies have had revenues, even profits. That said, none ever proved to be a store of value longer term nor was used as a medium of exchange at a significant scale. Yes, supply of Bitcoin is limited, but so should be supply of naivete. That does not, and should not, create demand by itself. No wonder Warren Buffet…
