Is it too soon to talk about Crypto yet?

[MinnesotaEric]

Meanwhile, Bitcoin has maintained its place as the 7th largest ASSET CLASS in the WORLD, but those who haven't studied it believe Bitcoin is a ponzi-scheme because they think they know something about tulips but have never read for themselves, the Extraordinary Popular Delusions and the Madness of Crowds and digested what falsifies ponzi schemes and drives delusions. Neither have they even weighed the lessons from the Great Recession and considered Planet Ponzi: How the World Got Into This Mess, and What Happens Next and recognized that we're all having a bit of an agreed upon wink and giggle, because the value of everything is faith-based (an overarching, on-going locus or nexus of both my assertions for decentralized investing in general is that the value of anything is, in point of fact, faith-based. Meaning that if an entity simply creates more of that thing we all think has value, then faith in its value and buying power decreases if supply exceeds demand).

The question is: what asset is more sustainable with less carrying costs than Bitcoin?

Step up to the plate and share with us what is a better apex asset class than Bitcoin?

What is has easier security at scale?

What is easier to convert into money?

What is easier to spend?

What is easier to transport?

What is a better storehouse of value?

​

https://twitter.com/x/status/1916508384578166926

 

[quicksandfarmer]

I'm not going to copy and paste a whole lot of text, but I welcome anyone who's curious to check out this page: "the official Stupid Crypto Talking Points database"

https://ioradio.org/i/crypto-talking-points/

 

[MinnesotaEric]

[emoji[emoji6][emoji6]][emoji6]" data-quote="quicksandfarmer" data-source="post: 0" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch">

I'm not going to copy and paste a whole lot of text, but I welcome anyone who's curious to check out this page: "the official Stupid Crypto Talking Points database"

https://ioradio.org/i/crypto-talking-points/

You’re trying to poison the well. How about interacting personally and situationally?

Perhaps you could start by sharing what you believe is a superior asset and why to set an example?

 

[quicksandfarmer]

You’re trying to poison the well. How about interacting personally and situationally?

Perhaps you could start by sharing what you believe is a superior asset and why to set an example?

I answered that question back on March 25 in post #221, but I'll repeat it:

That's easy: assets which represent a claim on a future stream of income. Like stocks, bonds and real estate.

 

[drssg]

quicksandfarmer, I don't understand. If we don't continually rehash the same old arguments, what are we supposed to do on the internet?

 

[quicksandfarmer]

quicksandfarmer, I don't understand. If we don't continually rehash the same old arguments, what are we supposed to do on the internet?

You have a point.

 

[MinnesotaEric]

I answered that question back on March 25 in post #221, but I'll repeat it:

Claims on the future are faith based. PE ratios and bond yields can not only rise but also fall as future earnings predictions fall and bond yield rates rise against inflation. Acquisition costs and carrying costs for Real Estate are definitely rising with increases in property tax, insurance and maintenance. So those attributes are headwinds against equities, bonds and real estate—but a major headwind rarely spoken of is the inflationary nature of fiat money supply as its growth vastly expands beyond normal population growth.

According to the Federal Reserve, USD money supply has increased 40.69% since 202 and 157.1% since 2009. Imagine working all your life and saving only to see your investments devalue to less than 1/2 of its purchasing power?

Money managers generally suggest to their clients that they should be diversified. They suggest diversification because they don't know what is going to rise or fall and so they suggest owning some of everything. The better index guys suggest owning only those companies that offer dividends so their clients get market performance plus the the tailwind of the dividends and outperform the indexes. Good stock pickers suggest owning those companies that are "hot" like the magnificent 7 but those companies have underperformed Bitcoin over the years.

Bond traders have lost capital as yields have risen, and for those institutions that have carried the bonds on their books to avoid writing in the loss, they've lost value as inflation made everything more expensive with the increase of M2 money supply around the globe.

Which is to say everything priced in dollars has gotten more and more expensive but everything priced in Bitcoin has gotten less and less expensive.

Given the deflationary nature of Bitcoin over the years, what is a better performing asset than Bitcoin?

 

[fiddlearound]

Can you please tell me the exact asset that Bitcoin represents? Is it an alternative currency?
Can it's value oscillate?
Is it dependent on any demand?

Thanks.

 

[quicksandfarmer]

Claims on the future are faith based. PE ratios and bond yields can not only rise but also fall as future earnings predictions fall and bond yield rates rise against inflation. Acquisition costs and carrying costs for Real Estate are definitely rising with increases in property tax, insurance and maintenance. So those attributes are headwinds against equities, bonds and real estate—but a major headwind rarely spoken of is the inflationary nature of fiat money supply as its growth vastly expands beyond normal population growth.

According to the Federal Reserve, USD money supply has increased 40.69% since 202 and 157.1% since 2009. Imagine working all your life and saving only to see your investments devalue to less than 1/2 of its purchasing power?

Money managers generally suggest to their clients that they should be diversified. They suggest diversification because they don't know what is going to rise or fall and so they suggest owning some of everything. The better index guys suggest owning only those companies that offer dividends so their clients get market performance plus the the tailwind of the dividends and outperform the indexes. Good stock pickers suggest owning those companies that are "hot" like the magnificent 7 but those companies have underperformed Bitcoin over the years.

Bond traders have lost capital as yields have risen, and for those institutions that have carried the bonds on their books to avoid writing in the loss, they've lost value as inflation made everything more expensive with the increase of M2 money supply around the globe.

Which is to say everything priced in dollars has gotten more and more expensive but everything priced in Bitcoin has gotten less and less expensive.

Given the deflationary nature of Bitcoin over the years, what is a better performing asset than Bitcoin?

Stupid Crypto Talking Point #2 (Number go up)​

https://ioradio.org/i/crypto-talking-points/

 

[MinnesotaEric]

Can you please tell me the exact asset that Bitcoin represents? Is it an alternative currency?
Can it's value oscillate?
Is it dependent on any demand?

Thanks.

First Principles
Bitcoin is the only fixed supply of any commodity that you can own.

Commodities prices fluctuate with demand.

Aggregate demand for Bitcoin continues to increase faster than any other commodity over time.

The increase in buying interest is generally coming from institutions and nation states.

Bitcoin's selling pressure comes from those who believe it to be a risk asset—meaning that those people sell it because they think that markets sell off because of recession and headline risks.

The selling interest comes from short-term thinkers while the buying interest comes from longer-term thinkers.

Over time, markets always coordinate the transfer wealth from short-term holders to long-term holders.


What does Bitcoin represent?
While Bitcoin is regarded as a kind of currency, a kind of commodity, and as an asset class off of its own, the trend in institutional thinking is to increasingly treat Bitcoin as an asset. Fundamentally, Bitcoin is a independently verifiable network, a storehouse of power and an asset. Bitcoin’s uniqueness lies in being the first asset in human history that can be truly owned independent of external forces. Other forms of property can be confiscated, restricted, or decay. If we think of money as portable storehouse of power that we can deploy to build or acquire goods and services, then Bitcoin is the apex of money because it cannot be diluted through the creation of more than its fixed supply of 21,000,000 coins. All other commodities supply can grow and assets are in and of themselves necessarily rare.