The thing about Bitcoin specifically, though, is that there are only really 2 possible outcomes: 1. The world decides it's "tulips" at some point, and the value goes to 0. 2. The world decides it will be a major part of the financial system, and it goes to 500k or 1 million. Basically, anything in between is just a probability calculation of whether it will end up at one end or the other. The problem with this, thoug…
> 2. The world decides it will be a major part of the financial system, and it goes to 500k or 1 million. Where does this belief come from? Dollars are also a major part of the financial system, at yet each dollar is only worth $1.
The supply of Dollars is not limited to 21 million.
USA has natural resources, advanced technologies, and a standing armed forces that are stationed all over the world. These extract value and serve as utility. Bitcoin is better at laundering money than many fiat currencies but otherwise it’s only wide scale utility is a speculative investment asset that only increases in value if more people create demand for its limited supply.
Yeah, the floor value of bitcoin is probably its value in crime.
Which I think is $0 . Monero has supplanted Bitcoin in the "crime" liquidity department.
I own no crypto and I think it's a ridiculous piece of hype, but I think all that reporting (and, on twitter, all that schadenfreude) about bitcoin (etc) going down is nonsense. If you look at a 5 year chart of the BTC value, it's still super insane high and it's been going down hard once before (summer 2021). If I were a crypto fan I'd just tweet HODL like every previous time.
The thing about Bitcoin specifically, though, is that there are only really 2 possible outcomes: 1. The world decides it's "tulips" at some point, and the value goes to 0. 2. The world decides it will be a major part of the financial system, and it goes to 500k or 1 million. Basically, anything in between is just a probability calculation of whether it will end up at one end or the other. The problem with this, thoug…
I jumped in right at 60k fully knowing it will either go to 500k or to zero. I will wait this out whatever happens.
Depending on how much you went into, aside from HODL, that's called YOLO. In general, people spread their assets. So for example, you could speculate some on the stock market, some in cryptocurrencies, etc. If you put all your savings in, and it goes to zero, I feel sorry for your children. Cause there goes their scholarship.
> In general, people spread their assets. So for example, you could speculate some on the stock market, some in cryptocurrencies, etc.
I find this funny, my tech stocks portfolio has gone down 10% since the beginning of the year. I do monthly investing, so that's a loss compared to my average price over time.
In contrast, I bought ETH at around $20 USD, and it being at $2000 is still quite a good outcome for me.
It's not backed by mathematics any more than gold is backed by chemistry.
Uh, gold _is_ backed by chemistry. If gold were to change nearly any of its chemical properties, it would instantly lose its value. It is stable, generally non-reactive, non-toxic, lustrous, and of generally low abundance - all properties derived directly from its chemistry. That is actually one of the strongest arguments, to my mind, for why some variant of a cryptocurrency will survive as a store of value. Gold kin…
Sure and cash is backed by a special linen-cotton blend of paper.
I can’t stop thinking about the points Daniel Schmachtenberger https://www.youtube.com/watch?v=p4NlLuNj0v8 made in this pod cast. TLDL: after WWII we setup this system of no more global wars BUT exponential growth and the system self terminates in 2024. So the panic is getting very real now.
What is special about 2024, what is supposed to happen then?
collapse. US Presidential election will have no clear winner.
That's all the point of crypto-currencies, they need to go up and down to enable speculation. Pump and make it go up. Dump and it goes down. Someone is cashing the difference. A stable crypto-currency will not attract so much speculative investment.
A stable crypto-currency will not attract any investment. Crypto is useless for anything but money laundering and speculation.
Stables just need a fixed income vehicle similar to bonds. Luna and UST is this and is taking off.
Depending on how much you went into, aside from HODL, that's called YOLO. In general, people spread their assets. So for example, you could speculate some on the stock market, some in cryptocurrencies, etc. If you put all your savings in, and it goes to zero, I feel sorry for your children. Cause there goes their scholarship.
> In general, people spread their assets. So for example, you could speculate some on the stock market, some in cryptocurrencies, etc. I find this funny, my tech stocks portfolio has gone down 10% since the beginning of the year. I do monthly investing, so that's a loss compared to my average price over time. In contrast, I bought ETH at around $20 USD, and it being at $2000 is still quite a good outcome for me.
You can't know what happens when the cryptocurrency ETH was at $20. You still don't know what happens. In contrast, with companies, we can take some things for granted, as they have to be open about it to e.g. SEC. With regards to the $20, I knew about Bitcoin when it was a couple of USD (during the Occupy Wallstreet movement, IIRC). I liked the idea, back then. But I didn't end up buying any because to me money is a tool, not a speculative asset. And, as tool, Bitcoin was not very useful then (it still isn't, IMO). Yes, I could've bought it back then. I almost did. But we don't know what the future holds, and for every person with my story there's only a few who did buy it in large enough quantities and exfiltrated their profits at a margin of 10000% like yours. The amount of people who lost money from Bitcoin speculation is also applicable, but you don't hear about the losers. As long as you HODL, all those who HODL win (at least on paper), but as soon as large amounts get exfiltrated, the supply goes up, and value goes down. So it is very important for those who hold the asset to share the HODL mindset (as cultish as it might be).