yes BTC has a limited supply, but again to me that's not the end
all be all. It's just a digitally created instrument, sort of like
the Robux money for that game that my son wants me to buy him, it's
simply digitally created currency for some dumb game.
Or you take some brand new baseball card and only print 10
copies, which causes the card to be worth $5000 artificially
because of the very low supply of that card, whereas my 1960 Hank
Arron card that survived for 64 years during all those years kids
put them in bike spokes and moms throw them out, is only worth
$300, to me I always hated that artificial value demand just by
limiting demand
Bitcoin is limited, that's great, but there's nothing backing
it. The US Dollar fiat currency yes the print and print, but it's
at least backed by the assets of the governments and
country.
Again Bitcoin is really cool for many things, and of course
criminals love it.
Again it is what it is, I'll ride the wide, but something longer
term doesn't sit well with me about it. Maybe that means I'm
getting old and a fuddy duddy, oh well
Posted by DigiNomad on 10th of Jan 2024 at 07:04 pm
I think you're right to be wary of it. The network effect is
where crypto gets its power (compared to say baseball cards) and
that's why the Gov only approved because of a horrendous legal
mistake and did so through clenched teeth. Just imagine if it
goes to 100K (about a 4 trillion crypto market). That money would
otherwise be sitting in productive assets whether in money market
funds (Gov debt which we all know is being issued like crazy and
needs constant buyers), corporate bonds which benefit private
companies, equities which benefit private companies...and now
crypto. If crypto becomes a viable asset class (seems like a lock
after today) and takes away from the others which historically at
least benefited the Gov and banks when parked in "cash", eventually
it will grow into a real problem. It could actually become
deflationary if it approaches the Tom Lee market cap prediction
levels (parked "cash" in money market funds puts downward pressure
on short term rates. Park it somewhere else and rates rise, all
else remaining equal).
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
yes BTC has a limited
Cash on sidelines - we all know how the talking ...
Posted by matt on 10th of Jan 2024 at 06:46 pm
yes BTC has a limited supply, but again to me that's not the end all be all. It's just a digitally created instrument, sort of like the Robux money for that game that my son wants me to buy him, it's simply digitally created currency for some dumb game.
Or you take some brand new baseball card and only print 10 copies, which causes the card to be worth $5000 artificially because of the very low supply of that card, whereas my 1960 Hank Arron card that survived for 64 years during all those years kids put them in bike spokes and moms throw them out, is only worth $300, to me I always hated that artificial value demand just by limiting demand
Bitcoin is limited, that's great, but there's nothing backing it. The US Dollar fiat currency yes the print and print, but it's at least backed by the assets of the governments and country.
Again Bitcoin is really cool for many things, and of course criminals love it.
Again it is what it is, I'll ride the wide, but something longer term doesn't sit well with me about it. Maybe that means I'm getting old and a fuddy duddy, oh well
I think you're right to
Posted by DigiNomad on 10th of Jan 2024 at 07:04 pm
I think you're right to be wary of it. The network effect is where crypto gets its power (compared to say baseball cards) and that's why the Gov only approved because of a horrendous legal mistake and did so through clenched teeth. Just imagine if it goes to 100K (about a 4 trillion crypto market). That money would otherwise be sitting in productive assets whether in money market funds (Gov debt which we all know is being issued like crazy and needs constant buyers), corporate bonds which benefit private companies, equities which benefit private companies...and now crypto. If crypto becomes a viable asset class (seems like a lock after today) and takes away from the others which historically at least benefited the Gov and banks when parked in "cash", eventually it will grow into a real problem. It could actually become deflationary if it approaches the Tom Lee market cap prediction levels (parked "cash" in money market funds puts downward pressure on short term rates. Park it somewhere else and rates rise, all else remaining equal).