21–30 of 97 posts
Everyone is rushing to buy bitcoin at all time highs
The stock market has been at "all time highs" for most of its existence. Doesn't mean it is a bad time to invest.
Embrace it, buy a small amount of bitcoin, buy a small amount of tesla, be part of something big, if it pops it will not hurt you, if it continues to grow and evolve you will be part of it.
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US is also creating dollars at all time highs. As money supply increases, asset prices inflate
No. This is incorrect, and a misunderstanding of economics. CPI, price inflation, is tracking at 2% as expected. Housing is actually down. Stocks are up because some people have a bunch of extra cash and nothing to do during the day. These two are not connected.
Earlier quoted context omitted.
US is also creating dollars at all time highs. As money supply increases, asset prices inflate
No. This is incorrect, and a misunderstanding of economics. CPI, price inflation, is tracking at 2% as expected. Housing is actually down. Stocks are up because some people have a bunch of extra cash and nothing to do during the day. These two are not connected.
Earlier quoted context omitted.
US is also creating dollars at all time highs. As money supply increases, asset prices inflate
No. This is incorrect, and a misunderstanding of economics. CPI, price inflation, is tracking at 2% as expected. Housing is actually down. Stocks are up because some people have a bunch of extra cash and nothing to do during the day. These two are not connected.
Earlier quoted context omitted.
As the money printing goes, assets will inflate and inflation will catch up, and it will be somewhat balanced....
I'd love a citation on that if you have one, I have seen no evidence the two are connected. The money was printed to counter deflationary pressure. This succeeded, and the rate of inflation is tracking at 2% per expectations.
My point was only that it’s a currently a small fraction of the overall US equity market, and if it becomes increasingly widely accepted as a reserve currency comparable to the dollar or an inflation protected asset like gold then there’s no reason why it shouldn’t be worth trillions.
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an entire unique asset class that is worth one Tesla. seems low, no?
You're comparing a speculative mania in fictional crime-bucks to a speculative mania in a car company worth more than Facebook while simultaneously selling just 4% as many cars as Toyota. Tesla's price to earnings ratio is 1500 meaning it would take until the year 3521 for it to earn back its market cap. The fact you're even making this assessment tells me this isn't going to end well for anyone. Heed my warning: The…
Being so sure that BTC is a bubble is just as naive as being completely sure it's going up to a million dollars per coin. It's just speculation either way, and there is no fundamental law of nature (or even principle of economics) preventing either outcome.
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No. This is incorrect, and a misunderstanding of economics. CPI, price inflation, is tracking at 2% as expected. Housing is actually down. Stocks are up because some people have a bunch of extra cash and nothing to do during the day. These two are not connected.
If that's the case, where is all the money going? How can we reconcile increasing supply without budging inflation?
[1] https://www.stlouisfed.org/on-the-economy/2014/september/wha...
[2] https://www.investopedia.com/terms/v/velocity.asp#:~:text=Ve....
Earlier quoted context omitted.
No. This is incorrect, and a misunderstanding of economics. CPI, price inflation, is tracking at 2% as expected. Housing is actually down. Stocks are up because some people have a bunch of extra cash and nothing to do during the day. These two are not connected.
That money mass will eventually "trickle down" to CPI too. It's just injected from the top and takes time.
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The stock market has been at "all time highs" for most of its existence. Doesn't mean it is a bad time to invest.
Crypto however has not. It has spent a comparatively tiny fraction of its time at ATH as one would expect for a speculative bubble. In fact, it spent the last 3 years way below its ATH.