71–80 of 227 posts
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…
Rather balanced article, but like many fails to mention one really important aspect of Bitcoin: 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 ta…
> 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…
It is my admittedly limited understanding of US tax law that - as long as you don't sell - you aren't getting taxed on gains (unrealized capital gains).
Should you then decide to use your coins to directly buy - say - a house in Japan: since no actual Yen-denominated price is ever involved in the transaction, how will the US government evaluated your realized capital gains?
Also: the US is but one place in the world. There are quite a few folks on this earth that aren't burdened with a US passport, and quite a few places that don't have capital gains on crypto sales.
Rather balanced article, but like many fails to mention one really important aspect of Bitcoin: 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 ta…
Some of the items you listed apply to crypto assets just like regular assets. It’s just the enforcement of the laws hasn’t been as consistent as with other physical financial assets. Specifically: “ - capital gain taxes - death taxes (inheritance taxes) - asset seizures (divorces, bankruptcy, random court decisions against you, Cyprus Bank Disaster [1], etc...)” And > The fact that some of the things listed above wil…
In the US it is.
Other, more humane jurisdictions view it as an infraction: if caught, you'll get fined, but you won't go to jail.
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.
> never gone through a major economic crisis COVID and the massive supply of dollars since last year is not one?
Earlier quoted context omitted.
> In the end, a lot of the blockchain infrastructure relies on bitcoin hence it moves in sync. Does it, though? I’m on the sidelines, but it seems like all the excitement/money flowing into crypto these days is into blockchains with higher transaction throughput and more advanced smart contract interpreters. I know there are some maxis trying to build things like DeFi and NFTs on Bitcoin but it seems to have really t…
> DeFi and NFTs on Bitcoin There are DeFi and NFT platforms on Bitcoin? I haven’t heard of those. Are you talking about Ethereum?
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.
They literally have no value other than what is attributed to them, so if you want to clean up some money you just have to buy an NFT with legit money for X, then sell it to yourself using less-than-legit money.
Now you own all legit money, and have only spent some minor transaction fees.
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.
Intervention by the Central Bank is not a good thing. There are a few economist who are warning against the lack of moral hazard currently pervasive in the Traditional Finance sector. Crypto will be the refuge from aggressive monetary policy going tits up. Aka like in 2008.
A saying goes: pessimists get to be right, optimists get to be rich.
Is it really a bubble or is it driven by market demands as more and more applications and use-cases emerge? In the end, a lot of the blockchain infrastructure relies on bitcoin hence it moves in sync. China's real estate market is a bubble because there is a excess of 500 million dwellings that are not needed.
We're still waiting for the first application or use case.
Michael Burry was also famously (and vocally) short TSLA for many years until he finally folded and closed his positions recently. I'm not crazy bullish on crypto myself, but it is pointless to hold the opinion of a few analysts/fund managers above the rest just because they made some good bets in the past. The one thing that the market has shown is that no one knows which way any security will go tomorrow – not Buff…