It’s an inescapable pattern of human culture: Each new generation believes it is smarter and wiser than the generation before. Throughout the history of western civilization, young innovators believed they had discovered near-magical wealth generating systems that could produce riches without effort.
Today, we’re told by enthusiastic youth that Bitcoin is different, too. And if we disagree with them, they say we’re too old or stupid to really understand Bitcoin. The only way to truly understand this innovative cryptocurrency, we’re told, is to believe that its valuation will increase logarithmically, forever. Only then are we considered to have fully “understood” Bitcoin.
Podcast Transcript: “I posted a really interesting and informative story at BitRaped.com. It’s titled ‘How to explain the Bitcoin bubble to young people.’ This is a very important story to read if you want to understand the Bitcoin phenomenon and what’s behind the bubble. What’s behind all the young people who are absolutely convinced that they’re never going to have to work a day in their lives, because all they have to do is keep buying Bitcoin. They think they’re all going to be billionaires. They literally believe this. As the story points out, you know every generation thinks that they’re smarter and wiser than the generation before. You and I thought this too probably when we were young. All of us did. It’s a normal part of being young, thinking that old people don’t know what they’re talking about and they’re stupid. But young people are new and innovative and this time it’s different. So, with Bitcoin, all these young people, many Millennials and even younger, believe that they have stumbled upon a magical perpetual motion wealth generator. A magical machine they can stick their hand in the machine just pull out money endlessly without effort…” Listen to the full podcast below: