Figured I’d summon at least one person trying to defend crypto. Just because the US has issues doesn’t suddenly mean crypto is good.
Bitcoin has been around for almost two decades now, and still has not achieved anything beyond being a means for speculators to try and fleece each other. If it hasn’t reached widespread mainstream adoption by now, it never will.
Gold is also just digging something up and then re-burying it. If it hasnt replaced fiat then why are people buying it, why has it been going up 100% a year recently when theres no new industrial demand for it?
Its fine to not hold it, but all finite assets have some intrinsic value, because fiat keeps pumping via new debt issuance, which is inevitably debased. Like it was during Covid, or 2008, or 2001, etc…
Crypto has a higher volatility, but can have a higher return, and is more closer correlated to the Nasdaq; like all assets its generally efficiently priced. I’d say its closer to TQQQ than it is to VT or gold, which may be suitable for 1-10% of a portfolio depending on goals and risk tolerance. If they drop interest rates quickly to pump the stockmarket TQQQ and Bitcoin would likely both rise dramatically.
I feel like you just autopiloted into random cryptobro talking points that have nothing to do with the conversation. I don’t care if you like crypto, the reality is that rest of the world has already rejected it and moved on.
Well the crux of the argument is gold went from 2500$ to 7000$ in 2 years, and youre trying to convince people of the irrationality of a finite asset. I’m not saying its a sure thing, but I do think Blackrock suggesting a 2% allocation to Bitcoin is rational, and I’ve done very well myself with a small allocation like that; despite the idea the “world rejected it”.
No, I never mentioned a thing about gold. That’s not what my argument was. Did you even read my post, or did you just see the word blockchain and go to copypaste some prewritten talking about?
If the US dollar goes through hyperinflation and becomes worthless, people in the US won’t switch to Bitcoin or other crypto as their main form of currency. We’ll do exactly what citizens of every country that experiences such a currency crash does - start using other more stable currencies. You would see businesses start accepting a mix of Canadian dollar, Mexican pesos, Euros, and Yuan.
I’ve contemplated this myself, about competing currencies, and how that would leave the world if we had cheap and ubiquitous FX with little to no drag. Would it not cause a race to the bottom for inflation targeting, and lead to something similar to everyone using a fixed currency?
Why would I hold Canadian dollar or Pesos if their inflation target is 2% versus say the Swiss 1%? Is there enough new money supply for everyone to even attain the lowest inflation currency, or do they bid down the denomination as that countries FX value rises?
Why would I hold Canadian dollar or Pesos if their inflation target is 2% versus say the Swiss 1%?
No. No it wouldn’t.
Because ultimately you (assuming you’re in the US), have to pay your taxes in USD. People say that fiat currencies aren’t backed by anything, but that isn’t true. They’re backed by the fact that every single US citizen and resident has to gather up thousands of dollars every year and pay them to the government. Even if you could convince your employer to pay you in Euros, the IRS will still demand you pay whatever taxes you would owe if you were paid in an equivalent amount of dollars.
Blockchains in an age of Trump choosing a new Fed chair after trying to have Powell arrested.
Trust your government over software and cryptography, which has no basis in reality outside of the laws of physics and mathematics.
Figured I’d summon at least one person trying to defend crypto. Just because the US has issues doesn’t suddenly mean crypto is good.
Bitcoin has been around for almost two decades now, and still has not achieved anything beyond being a means for speculators to try and fleece each other. If it hasn’t reached widespread mainstream adoption by now, it never will.
Crypto is a failed technology, full stop.
Gold is also just digging something up and then re-burying it. If it hasnt replaced fiat then why are people buying it, why has it been going up 100% a year recently when theres no new industrial demand for it?
Its fine to not hold it, but all finite assets have some intrinsic value, because fiat keeps pumping via new debt issuance, which is inevitably debased. Like it was during Covid, or 2008, or 2001, etc…
Crypto has a higher volatility, but can have a higher return, and is more closer correlated to the Nasdaq; like all assets its generally efficiently priced. I’d say its closer to TQQQ than it is to VT or gold, which may be suitable for 1-10% of a portfolio depending on goals and risk tolerance. If they drop interest rates quickly to pump the stockmarket TQQQ and Bitcoin would likely both rise dramatically.
I feel like you just autopiloted into random cryptobro talking points that have nothing to do with the conversation. I don’t care if you like crypto, the reality is that rest of the world has already rejected it and moved on.
Well the crux of the argument is gold went from 2500$ to 7000$ in 2 years, and youre trying to convince people of the irrationality of a finite asset. I’m not saying its a sure thing, but I do think Blackrock suggesting a 2% allocation to Bitcoin is rational, and I’ve done very well myself with a small allocation like that; despite the idea the “world rejected it”.
No, I never mentioned a thing about gold. That’s not what my argument was. Did you even read my post, or did you just see the word blockchain and go to copypaste some prewritten talking about?
If the US dollar goes through hyperinflation and becomes worthless, people in the US won’t switch to Bitcoin or other crypto as their main form of currency. We’ll do exactly what citizens of every country that experiences such a currency crash does - start using other more stable currencies. You would see businesses start accepting a mix of Canadian dollar, Mexican pesos, Euros, and Yuan.
I’ve contemplated this myself, about competing currencies, and how that would leave the world if we had cheap and ubiquitous FX with little to no drag. Would it not cause a race to the bottom for inflation targeting, and lead to something similar to everyone using a fixed currency?
Why would I hold Canadian dollar or Pesos if their inflation target is 2% versus say the Swiss 1%? Is there enough new money supply for everyone to even attain the lowest inflation currency, or do they bid down the denomination as that countries FX value rises?
Because ultimately you (assuming you’re in the US), have to pay your taxes in USD. People say that fiat currencies aren’t backed by anything, but that isn’t true. They’re backed by the fact that every single US citizen and resident has to gather up thousands of dollars every year and pay them to the government. Even if you could convince your employer to pay you in Euros, the IRS will still demand you pay whatever taxes you would owe if you were paid in an equivalent amount of dollars.
deleted by creator