Earlier quoted context omitted.
This is why I come to Hacker News.
because of the comment or the article ?
The comment showing me whether this guy knows what he is talking about or not.
Three Delusions: Paper Wealth, a Booming Economy, and Bitcoin
41–50 of 163 posts
Re: Three Delusions: Paper Wealth, a Booming Economy, and Bitcoin
#42Re: Three Delusions: Paper Wealth, a Booming Economy, and Bitcoin
#43I look beyond the “there’s a crash coming” sentiment. In that opinion, he is like all other pundits yammering on CNBC: entertaining rather than enlightening. What I like about his article is the insight — new to me — about the nature of paper wealth vs real wealth. He described it in a way that is useful and enlightening to me. The assertion that a security (stock, bond) is not an addition to net wealth — just a zero…
And I think it is wrong. On initial offering, it moves money to a potential value adding activity. Even after that, stock can be used as an incentive to increase productivity (and hence add value to an economy). Certainly a single trade is in some sense "zero-sum", but the entire point is to provide efficient access to capital that can be (and is) used productively.
Re: Three Delusions: Paper Wealth, a Booming Economy, and Bitcoin
#44Earlier quoted context omitted.
This company has ~$750mm under management, and has several funds that manage to have both a) high expense ratios and b) horrible performance over the short and long terms. Serious question, for those who work in finance: how do companies like this stay in business? Shouldn't the transparency of their poor performance have long since driven them out of business? Semi-serious question, also for those who work in financ…
go on morningstar (or below) and look at the chart for the entire life of the fund, you'll see that he had periods of massive outperformance http://quotes.morningstar.com/chart/fund/chart?t=HSGFX®io...
a broken clock is right twice a day
Re: Three Delusions: Paper Wealth, a Booming Economy, and Bitcoin
#45Understanding Bitcoin is hard. Here is a response to some of the criticism: > Every time a block is validated, a single node in the network gets a reward, and everyone else’s computing time is completely wasted. This is a misunderstanding of what PoW is http://www.truthcoin.info/blog/pow-cheapest/ > The system already features a rather steep cost per transaction, and hardly any of those transactions are for the purch…
>> Every time a block is validated, a single node in the network gets a reward, and everyone else’s computing time is completely wasted.
>This is a misunderstanding of what PoW is http://www.truthcoin.info/blog/pow-cheapest/
Honest question: I tried to find the problem with that view in the link you provided, but couldn't. Can you explain it to others who may share the same belief? I think that's what the Bitcoin white paper describes, but could be mistaken.
Re: Three Delusions: Paper Wealth, a Booming Economy, and Bitcoin
#46Earlier quoted context omitted.
This company has ~$750mm under management, and has several funds that manage to have both a) high expense ratios and b) horrible performance over the short and long terms. Serious question, for those who work in finance: how do companies like this stay in business? Shouldn't the transparency of their poor performance have long since driven them out of business? Semi-serious question, also for those who work in financ…
with 5% fees, Hussman himself is making money! it's only the clients that are losing money he just has to produce doomsayer screeds that are convincing enough to fool the clients. he's basically being paid to write dystopian fiction
not sure where the 5% fees number is coming from, it looks like its https://www.hussmanfunds.com/pdf/hsgprosp.pdf
Re: Three Delusions: Paper Wealth, a Booming Economy, and Bitcoin
#47Understanding Bitcoin is hard. Here is a response to some of the criticism: > Every time a block is validated, a single node in the network gets a reward, and everyone else’s computing time is completely wasted. This is a misunderstanding of what PoW is http://www.truthcoin.info/blog/pow-cheapest/ > The system already features a rather steep cost per transaction, and hardly any of those transactions are for the purch…
>> Every time a block is validated, a single node in the network gets a reward, and everyone else’s computing time is completely wasted. >This is a misunderstanding of what PoW is http://www.truthcoin.info/blog/pow-cheapest/ Honest question: I tried to find the problem with that view in the link you provided, but couldn't. Can you explain it to others who may share the same belief? I think that's what the Bitcoin whi…
You need opportunity cost in order to secure the network. Without that, there is no incentive to keep the network secure. There is no cheaper solution to solve this problem, therefore there is no waste.
Re: Three Delusions: Paper Wealth, a Booming Economy, and Bitcoin
#48There is a lot to dissect but I would focus on labor force. Our labor force used to be all human labor. Now it includes a large number of bots, both physical and software, that take care of business. The (output = labor . x) doesn't work anymore.
Re: Three Delusions: Paper Wealth, a Booming Economy, and Bitcoin
#49I look beyond the “there’s a crash coming” sentiment. In that opinion, he is like all other pundits yammering on CNBC: entertaining rather than enlightening. What I like about his article is the insight — new to me — about the nature of paper wealth vs real wealth. He described it in a way that is useful and enlightening to me. The assertion that a security (stock, bond) is not an addition to net wealth — just a zero…
Thank you for this comment. There's so much negativity in the most-voted comments that it's refreshing to see an approach that tries to learn instead of discredit.
Re: Three Delusions: Paper Wealth, a Booming Economy, and Bitcoin
#50I found this reading very interesting, and novel.
However, he lost me when he wrote: "With regard to Bitcoin, my view is that the Blockchain algorithm itself is brilliant. Bitcoin itself, however, is just one application of Blockchain, and a rather awkward one."
Every time I read a comment like this, my eyes roll up.