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S&P Dow Jones Indices to launch cryptocurrency indexes in 2021

reuters.com

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Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021

#251

Post by tiwprueowut47 »

root_axis wrote: post #240
nofunphil wrote: post #229

Earlier quoted context omitted.

Buying Bitcoin is becoming similar to buying gold. It’s a Store of Value. Why is gold an investment? Because it’s scarce and we have, as a society, decided it’s an investment. There may be nuances here, but that’s the basic idea. Bitcoin is digital gold. Most other tokens are similar buying fiat currencies which can help if you local fiat currency is hyper-inflating. But then some tokens give access to de-fi which a…

Cryptocurrency isn't actually scarce though, it may be "scarce-like" but the scarcity is an artificial property that can be arbitrarily changed, unlike gold's scarcity which is an unalterable property of reality.

Gold’s scarcity is certainly not unalterable. Gold can be destroyed, increasing its scarcity. Plus we already have the technology to create gold out of other elements in a particle accelerator, decreasing its scarcity. That process happens to be prohibitively expensive, but there is no guarantee it remains so. The scarcity of cryptocurrencies and gold both depend on the actions of other people.

Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021

#252

Post by pashamur »

wsc981 wrote: post #147
misnamed wrote: post #131

Earlier quoted context omitted.

If you want to hedge against inflation, I suggest TIPS and maybe a bit of gold. I would also point out that the market expectation clearly isn't aligned with currencies being 'in trouble' - very low inflation in general right now.

> If you want to hedge against inflation, I suggest TIPS and maybe a bit of gold. I need to read up on TIPS, haven't heard about that before. Yes, gold is a decent option as well. However I view Bitcoin as digital gold and it has a few nice properties that gold doesn't have (of course gold has some good properties that Bitcoin doesn't have). One of the aspects of Bitcoin that I appreciate the most, is that it's very…

> Inflation is actually really high, but its mostly hidden in rising prices for stocks and real estate.

Sort of. There's inflationary forces (fiscal / stimulatory policy) battling deflationary forces (mainly technological innovation), mainly netting out to a low inflation rate at the moment, as defined by the CPI.

Assets that are not affected by the deflationary forces (such as land, and some types of housing), do tend to increase in value, though some of that is increase is just due to interest rates being so low (since for most consumers the house payment is more important than the absolute price; when interest goes down, prices normally go up).

It would be interesting to do a graph of interest-normalized house/asset prices over time.

Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021

#253

Post by ravingraven »

joosters wrote: post #151
clarky07 wrote: post #146

Earlier quoted context omitted.

so why does it still take me 3+ business days to move money between banks? I assume it's just because they use that float to make money, but it still sucks. i for one like transactions clearing in a few seconds rather than a few days.

It's because you don't live in the EU. Millions of people have had instant money transfers for years now.

I live in the EU. I don't have instant money transfers (they are within the day but not instant). Across EU countries it still takes days.

Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021

#254

Post by Erlich_Bachman »

postingpals wrote: post #249
nofunphil wrote: post #229

Earlier quoted context omitted.

Buying Bitcoin is becoming similar to buying gold. It’s a Store of Value. Why is gold an investment? Because it’s scarce and we have, as a society, decided it’s an investment. There may be nuances here, but that’s the basic idea. Bitcoin is digital gold. Most other tokens are similar buying fiat currencies which can help if you local fiat currency is hyper-inflating. But then some tokens give access to de-fi which a…

A store of value is just one aspect to what makes money, money. It also has to be a medium of exchange and a standard of value. Bitcoin's value changes so wildly that it cannot be a standard (right now) and no one uses it to buy things. Everyone is investing in bitcoin on the promise that its going to be so much more useful than dollars, in the hopes that they will make a lot of... dollars? Do you see the contradicti…

Your logic stumbles when you consider gold. "no one uses it" either to "buy things", and yet it is valueable and has been so for eons. Store of value is a very important function in itself.

Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021

#255

Post by badestrand »

mettamage wrote: post #200
joosters wrote: post #151

Earlier quoted context omitted.

It's because you don't live in the EU. Millions of people have had instant money transfers for years now.

But this is the power of bitcoin right? Now I can live in South America and get near-instant (crypto)currency transfers as well.

That's not really a unique value proposition, as there are PayPal (and probably others) for many years already. And PayPal is free for private transfers, compared to BitCoin's ~$5/transaction.

Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021

#256

Post by smabie »

blackrock wrote: post #19

So is Bitcoin finally becoming legitimate?

If you count that some of the most sophisticated market makers and trading shops have entered the space then yes. If you count the fact that most less sophisticated investors have not entered, then no.

But I think we could be seeing a situation in the next 5 or 10 years when the market cap of bitcoin grows somewhere between 10 and 50 fold.

Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021

#257

Post by themodelplumber »

postingpals wrote: post #249
nofunphil wrote: post #229

Earlier quoted context omitted.

Buying Bitcoin is becoming similar to buying gold. It’s a Store of Value. Why is gold an investment? Because it’s scarce and we have, as a society, decided it’s an investment. There may be nuances here, but that’s the basic idea. Bitcoin is digital gold. Most other tokens are similar buying fiat currencies which can help if you local fiat currency is hyper-inflating. But then some tokens give access to de-fi which a…

A store of value is just one aspect to what makes money, money. It also has to be a medium of exchange and a standard of value. Bitcoin's value changes so wildly that it cannot be a standard (right now) and no one uses it to buy things. Everyone is investing in bitcoin on the promise that its going to be so much more useful than dollars, in the hopes that they will make a lot of... dollars? Do you see the contradicti…

> Everyone is investing in bitcoin on the promise that its going to be so much more useful than dollars

I doubt this is true in every case, maybe even most cases. Though this sentiment does seem to become more rigid toward the core of the crypto community, a huge swath of other investors are playing price action. There are tons of technical traders in crypto, and they tend to care much more about MA deviations, gaps, pennants, and candlestick forms than what's going to replace USD.

You can also think of it as a play by (people who don't have as many concerns about the dollar) off the fears of (people who are afraid about the future of the dollar).

IMO there is a lot of room in a speculative ecosystem for non-value, non-traditional-economics, and even hugely irrational viewpoints. They can all meet with success by using their own sets of strategies.

Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021

#258

Post by timdaub »

puranjay wrote: post #233
vmception wrote: post #228

Earlier quoted context omitted.

Its not a signal at all. Thats the entire rebuttal. Your premise is flawed.

How else do you figure out whether the devs can actually do what the whitepaper promises? Just go by their word?

I've been navigating the space since 2014. It's not too difficult if you know the tech. Here's some fat tony advice:

Good project/founders/devs:

- Are tightly connect to other good projects (e.g. check Twitter)

- Are shipping features/products continously (and talk about it)

- Adjust their vision/roadmap appropriately (crypto changes really quick)

- Are value-driven

- Try to improve upon difficult but possible engineering problems (e.g. we build a smart contract for a EUR stable coin compared to "we solve remittance for all the unbanked")

Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021

#259

Post by mrlala »

cryptica wrote: post #201

The economy is a scam. All the newly printed money which has gone into tech over the past decade is a scam. The only thing that mattered at all was your social connections; doesn't matter what the project was. Is it a coincidence that the two fastest growing assets are owned by people who share a common history? Mark Zuckerberg is the biggest shareholder in Facebook and the Winklevoss twins are the biggest Bitcoin in…

I mostly agree with this. As absurd as it sounds, I think you are basically correct.

The people with money do what they can to keep propping things up because they are the ones that massively gain on it. They can afford to keep risking and risking, cashing out when it's convenient and if they take a hit? Oh well, I lost 50%.. or 500m. But you know what? I still have 500 million fucking dollars! As opposed to the normal people in which a 50% loss is devastating.

It is such insanity how much money the people pulling the strings have. And they have convinced people "hey throw all your money into our gambling pot of doom!"

Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021

#260

Post by [deleted] »

Erlich_Bachman wrote: post #254
postingpals wrote: post #249

Earlier quoted context omitted.

A store of value is just one aspect to what makes money, money. It also has to be a medium of exchange and a standard of value. Bitcoin's value changes so wildly that it cannot be a standard (right now) and no one uses it to buy things. Everyone is investing in bitcoin on the promise that its going to be so much more useful than dollars, in the hopes that they will make a lot of... dollars? Do you see the contradicti…

Your logic stumbles when you consider gold. "no one uses it" either to "buy things", and yet it is valueable and has been so for eons. Store of value is a very important function in itself.

[deleted]
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