Is it too soon to talk about Crypto yet?

[Fuddyduddy1952]

"If you save in Bitcoin, over time everything gets less expensive because Bitcoin is appreciating in value."

 

[MinnesotaEric]

"If you save in Bitcoin, over time everything gets less expensive because Bitcoin is appreciating in value."View attachment 2905456

The relatively common pullbacks are a feature that allows people to buy more while over time we see price appreciation. This is from Dec. 2022 to today.

But let's go back further.

 

[rumwrks]

If you save in dollars, over time everything gets more expensive because of the dollar's ever-reducing value.
If you save in Bitcoin, over time everything gets less expensive because Bitcoin is appreciating in value.

You might be well served to take a basic economics class that explains the value of a slightly inflationary currency and the problems with a deflationary one.

You're still ignoring the actual problems of scalability and the fact that it's not actually backed by anything at all. You can say that fiat is "faith based" but I have (well had anyway) a lot more faith in the productivity of the entire country and the power of the US military which is what backs a national currency than a bunch of shysters on the internet.

You also vacillate back and forth between "it's a currency" and "it's a store of value" depending on what fits your current narrative.

As more people recognize Bitcoin as an asset class for warehousing wealth, the increased buying interest will naturally increase the underlying asset's price according to the law of supply and demand much in the same way as the law of supply and demand has increased real estate valuations over time.

Real estate is an actual tangible thing though. This is more like selling "real estate" on Proxima Centauri, it's bunk.. there's nothing there. Like I said as long as there are more fools... (which tbf is a

"If you save in Bitcoin, over time everything gets less expensive because Bitcoin is appreciating in value."

Heh.. You know he's just going to pivot to how that's temporary, few understand, and early and, now is the time to "dollar cost average". (to late.. there it is... lol).

Facts:

• The current bear market is largely because one sale of $500M out of a nominal (aka made up) market cap of 1.6 trillion (give or take 20% depending on the day)
• There's little liquidity in the system
• Most of the price is propped up by wash trading and printed out of nothing "currency" (tether is the worst but other coins also print made up money to pump the value)
• Crypto proponents will ignore any actual facts and pivot to sea lioning about something else every.. single.. time..

 

[MinnesotaEric]

You might be well served to take a basic economics class that explains the value of a slightly inflationary currency and the problems with a deflationary one.

You're still ignoring the actual problems of scalability and the fact that it's not actually backed by anything at all. You can say that fiat is "faith based" but I have (well had anyway) a lot more faith in the productivity of the entire country and the power of the US military which is what backs a national currency than a bunch of shysters on the internet.

You also vacillate back and forth between "it's a currency" and "it's a store of value" depending on what fits your current narrative.



Real estate is an actual tangible thing though. This is more like selling "real estate" on Proxima Centauri, it's bunk.. there's nothing there. Like I said as long as there are more fools... (which tbf is a



Heh.. You know he's just going to pivot to how that's temporary, few understand, and early and, now is the time to "dollar cost average". (to late.. there it is... lol).

Facts:

• The current bear market is largely because one sale of $500M out of a nominal (aka made up) market cap of 1.6 trillion (give or take 20% depending on the day)
• There's little liquidity in the system
• Most of the price is propped up by wash trading and printed out of nothing "currency" (tether is the worst but other coins also print made up money to pump the value)
• Crypto proponents will ignore any actual facts and pivot to sea lioning about something else every.. single.. time..

The scalability problem Bitcoin has is getting solved through the forthcoming Cardano bridge since both use UTXO. The demo is supposed to be delivered in May of this year.

Likening BTC to real estate is that both RE and Bitcoin are asset classes. As soon as a guy wraps their mind around that, Bitcoin begins to make sense.

Meanwhile, this remains true:

If you save in dollars, over time everything gets more expensive because of the dollar's ever-reducing value.
If you save in Bitcoin, over time everything gets less expensive because Bitcoin is appreciating in value.

 

[drssg]

If you save in dollars, over time everything gets more expensive because of the dollar's ever-reducing value.

Which is why most people make long-term investments in real companies that produce real products with real value. When Bitcoin goes up, it's because people are buying it, because they think it will go up.

It's a big circle-jerk about nothing. Have fun.

 

[California]

 

[quicksandfarmer]

Likening BTC to real estate is that both RE and Bitcoin are asset classes. As soon as a guy wraps their mind around that, Bitcoin begins to make sense.

Ownership in real estate has value because it is a claim to the future rent on a property. Or if you occupy it yourself, the rent you would have paid.

Ownership in the stock of a company has value because it is a claim to a portion of the future profits of that company.

Ownership in a bond has value because it is a claim to the future interest and principal paid to bondholders.

What income stream is associated with owning crypto?

 

[MinnesotaEric]

Meanwhile, pullbacks are a feature that allows people to buy at a lower cost average. Especially so when price appreciation has been telegraphed through institutional interest, coming regulatory clarity (contrary to the opening statement of the video California posted, we're getting more regulation, not less), Blackrock explaining to their clients that Bitcoin is an asset class in and of itself, Nation-states, sovereign wealth and retirement funds seeking Bitcoin exposure by proxy through Bitcoin ETFs, and not to mention the steady increase of retail investors becoming more and more interested in Bitcoin exposure.

All to say we know that Bitcoin is going to continue to appreciate in price as we move forward in the future. This move is telegraphed for anybody who is not wantonly blinding themselves. Anyway, while I was expecting nothing to happen in the crypto space until regulations hit, this Sunday morning our new President has directed the Presidential Working Group to move forward on a Crypto Strategic Reserve causing crypto markets to absolutely rip upward this morning.

And what was I doing during the days that crypto was pulling back? Doing exactly what I said: pullbacks are a FEATURE that allows investors to buy more. If I like a coin at the current market price and think that coin is going much, much higher because of its utility, then I LOVE that coin when it happens to be on fire sale at a lower price! This gets back to Ben Graham's analogy of "Mr. Market" which I explained in a video 16 years ago.

Anyway, I must admit days like this are fun.

Quickfarmer asked, "What income stream is associated with owning crypto?"

Answer: Through staking. For example, with the coming bridge between Bitcoin and Cardano, Cardano (ticker ADA) will be able to sign Bitcoin transactions while using Cardano as the gas fee.

As it sits, Cardano has a pile of staking pools. Here is a site for comparing returns from staking pools. Billions and billions of market cap worth of Cardano is staked verifying blockchain transactions while earning a fee that is paid out every five days.

 

[etpm]

If you save in dollars, over time everything gets more expensive because of the dollar's ever-reducing value.
If you save in Bitcoin, over time everything gets less expensive because Bitcoin is appreciating in value.

How do you know that Bitcoin is going to appreciate in perpetuity?
Eric

 

[MinnesotaEric]

How do you know that Bitcoin is going to appreciate in perpetuity?
Eric

Banks and institutional investors have been wanting to get into Bitcoin but either their local regulations, investing discipline, or both prohibited them from doing so. When Bitcoin ETFs launched, those ETFs became the fastest-growing ETF segment, ever. The reason for this is banks and institutional investors are allowed to own ETFs. Your question circles back around to my OP when I started this thread.

That said, Bitcoin's supply is capped at 21,000,000 coins and we will have a bum rush to own more and more bitcoin until 2032 when it'll take 100 years to mine the remaining Bitcoin and things stabilize. For me, it comes down to simple supply and demand.