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Earlier quoted context omitted.
To be fair, as regularly seen in smaller economies - regular money also tends to show no limit to how far it can drop during economic crisis.
Crypto is a speculative asset. It was made and promoted itself as money but failed completely in that aspect.
It has honestly surprised me that a bunch of people I thought were smart really think NFTs are a good long term investment. It clearly has no value beyond speculation and the bubble will pop.
> It has honestly surprised me that a bunch of people I thought were smart... Nobody is universally brilliant. Newton spent as much time on alchemy as he did physics. Maybe NFTs are just the modern alchemy, as they do seem to turn random items into digital gold.
I don't think that was an act of unbrilliance. It just didn't happen to work out.
There is a IMO a very tangible market demand for a financial product that allows one to completely shield value from the myriad of value-eroding propositions that have been baked into the traditional financial system to essentially bleed you dry on a long enough timeline.
- "management" fees
- capital gain taxes
- death taxes (inheritance taxes)
- asset seizures (divorces, bankruptcy, random court decisions against you, Cyprus Bank Disaster [1], etc...)
- inflation (govt mandated or otherwise)
- etc ...
For example, many of the traditional way to shield your wealth (stock market, commodities, real-estate) fail to be prone to some of the events I list above.
You may not agree that Bitcoin solves all of the above, in which case please list something that gets as close.
The fact that some of the things listed above will be viewed by some as "morally reprehensible" is irrelevant to the conversation: moral or not, the demand still exists.
And for folks who look at Bitcoin for this (shielding wealth) the fact that Bitcoin has gone parabolic in the last 10 years is kind of a nice cherry on the cake.
Yes, if you decide to use BTC to shield value, you are taking a rather big risk (volatility, BTC could be hurt by govt cracking down on it, there will be a huge "event" when Tether finally implodes, etc ...).
But again, please list something that comes any closer to solving the problem.
The above is why I believe people who claim Bitcoin has no "intrinsic value" (a term I consider to be entirely meaningless) are wrong, even using their own definition of "intrinsic value".
[1] https://en.wikipedia.org/wiki/2012%E2%80%932013_Cypriot_fina...
Michael burry is correct. The others (e.g talib, paulsen)... Are just hot gas. What distinguishes a bubble from a mania is the high degree of leverage underlying the price support. To date none of the Bitcoin price peaks in the past Exhibited the hallmark sign of a bubble popping, which is 2x faster price drop relative to rate of climb, if anything most of them were 2x slower. However, if you look at the motion that…
When btc becomes overleveraged, we simply see a -25% flashcrash. They happen every couple months.
When in the past the cute phrase was, "I knew when to pull out because my shoeshine boy was giving me advice" maybe now it's, "I knew when to pull out because George Soros is in" (as an indicator of leverage participation)
It has honestly surprised me that a bunch of people I thought were smart really think NFTs are a good long term investment. It clearly has no value beyond speculation and the bubble will pop.
How is this relevant to a Bitcoin conversation?
Crypto has never gone through a major economic crisis and when there were short term panics it always dropped significantly. Being without a central bank also means there is no limit to how far it can drop.
Tether is a fraud and everyone knows it. More than half of all crypto trades involve tether so the fraud is pervasive. But the most damning aspect of all is the fact that despite common knowledge of the pervasive fraud, USDT maintains it's peg. This indicates collusion by the market making exchanges in perpetrating this widespread, pervasive fraud. This essentially makes the entire crypto marketplace as we know it on…
Tether can temporarily keep the peg to $1 so long as a lot of people don't cash out at once. Given that they have cash reserves, they can buy back tethers that cost less than $1 themselves to keep the peg afloat. If they are legit, (lol) this would make great business sense since you are literally given a dollar and only have to pay back 99 cents. Everyone would love to be in the business of paying back loans for les…
Earlier quoted context omitted.
To be fair, as regularly seen in smaller economies - regular money also tends to show no limit to how far it can drop during economic crisis.
Crypto is a speculative asset. It was made and promoted itself as money but failed completely in that aspect.
It has honestly surprised me that a bunch of people I thought were smart really think NFTs are a good long term investment. It clearly has no value beyond speculation and the bubble will pop.
> It has honestly surprised me that a bunch of people I thought were smart... Nobody is universally brilliant. Newton spent as much time on alchemy as he did physics. Maybe NFTs are just the modern alchemy, as they do seem to turn random items into digital gold.
https://www.businessinsider.com/isaac-newton-lost-a-fortune-...
What specific problem has he verified that pertains to Bitcoin?