Crypto: Interesting numbers...

Discussion in 'Crypto Assets' started by johnarb, Nov 20, 2021.

  1. johnarb

    johnarb

    SEC has not approved a bitcoin spot etf, yet, but has approved the bitcoin futures etf recently. You don't think the SEC will approve a bitcoin spot etf? I think that will happen given some time

    Heck, the bitcoin futures etf bito when it came out less than a month ago had the best performance of all the etf's that came out beating GLD record

    qlai, I appreciate your compliment and I know you went into cash based on another thread. I'm also holding over $500K in cash in bank accounts that have no yield so as you know, your cash and mine are losing 6.2% in value per year if you believe the official inflation, but most likely real inflation is much higher than that

    It's what happens when fiat currencies are being debased by the worldwide governments, heck US has printed $10T in the past year, the most in the history in such a short time

    Utility of bitcoin is very important. It's an asset that cannot be debased by governments as it's based on math and code and decentralized out of their controls

    It's a bearer asset and value is recognized globally. You can go to Singapore or Japan and extract the same value of your bitcoin that you control with your private keys

    Let's compare that to Amazon stock if you invested in it, what is its utility? do you really own it? It's not a bearer instrument so the actual owner is not even your broker, but several intermediaries above it, ultimately I understand DTCC owns all the shares and broker dealers and exchanges have IOU's, just a bunch of counters

    You certainly cannot bring your Amazon to Singapore or Japan

    Bitcoin is a very important asset. The utility is a store of value that cannot be debased by anyone. I'm holding over $1.2M worth of bitcoin at the current price and plan to hold for years. I sleep well at night. It trades 24/7/365 and again it's a bearer instrument so I can bring to Singapore or Japan or Puerto Rico

    It's safer than the money in the bank. Yes I said that because right now, if I have $100K in the bank and it's 10PM at night, I cannot get access to it. When the bank opens and I wish to withdraw $50K, I probably have to explain. The money in the bank is not mine any longer the bank has just issued me an IOU but they actually own the money. Hence in the a bank bail-in situation such as Cyprus or Lebanon, the banks can just keep your money or a big portion of it

    Here's a video that has some good discussion on the fiat currencies and the bonds problems that bitcoin may offer a solution or at the very least an alternative risk mitigation. You get the bonus of asymmetric risk reward, numbers go up so if you did this with 25% of your net worth in a few years it could surpass your 75%. The key word is could


     
    #11     Nov 21, 2021
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  2. qlai

    qlai

    My opinion is that government cannot allow people who cannot even manage passwords put retirement money in a non-regulated speculative assets controlled by Chinese and Russian programmers (hackers?). But I don’t have any industry experience for my opinion matter :)
     
    #12     Nov 21, 2021
    johnarb likes this.
  3. johnarb

    johnarb

    There's already a bitcoin ETF in Canada and in Europe

    Bitcoin is regulated, otherwise, PayPal, Square, Robinhood, Visa, Mastercard, JP Morgan, Morgan Stanley, Goldman Sachs, CME, Bank of New York, Houston Pension fund, Fidelity, and on and on, cannot offer it to their clients or get involved in it

    Chinese? 0% mining in China now, in case you did not know :D China has cracked down on bitcoin and cryptos this year, they are out

    Russian programmers?

    Bitcoin is open-source, no one controls it. It's decentralized, distributed, p2p, immutable. I think you'll need more research on why it's not controlled by Russian hackers or Chinese hackers or any hackers

    Bitcoin is over $1 Trillion asset. Like I said, you may be thinking of bitcoin in 2013 :D
     
    #13     Nov 21, 2021
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  4. The real utility is doing most of what we pay billions to wall street firms to do except at a tiny, tiny fraction of the cost. All technology that became widely adopted offered some utility (light bulb, computer mouse, Internet, etc). All these were just toys in the beginning. Crypto is following the same path.
     
    #14     Nov 21, 2021
    johnarb likes this.
  5. qlai

    qlai

    Give examples plz.
     
    #15     Nov 21, 2021
  6. RedDuke

    RedDuke

    I 2nd this request. What can crypto do besides FOMO and money laundering, that was not done before it???? light bulb, computer mouse, Internet and etc were amazing inventions that changed our way of life.

    Crypto is no where near them. None can provide a clear answer of why we need crypto. I am sure at some point something might come out of it, but I fail to see it now, and would love for someone to explain what I am missing.
     
    #16     Nov 21, 2021
    qlai likes this.
  7. qlai

    qlai

    See, here’s the problem - something good and pure is born and the world rejoices. But then governments and corporations start putting their dirty hands on it and it becomes just another vehicle to transfer the wealth from the poor to the rich. I’m sure cryptos will make a world a better place, but I’m not yet sure how exactly.
     
    #17     Nov 21, 2021
  8. johnarb

    johnarb

    Bitcoin and cryptos are still very early. Lots of wealth are being created and the money is coming from wealthy guys that are coming in late

    Pension funds and other investment funds are unable to touch bitcoin and cryptos. I think Houston firefighters pension fund is the only one I'm aware of that invested in bitcoin

    In Australia, there's a retirement fund that invested in bitcoin

    We're able to front run them. Worldwide, regular folks are getting life changing wealth

    But what is that saying, ET people are looking at the gift horse in the mouth and think they are too late
     
    #18     Nov 21, 2021
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  9. We dont know how the bear market will play out this run. It could be a brief one and not 4 years bear to bull again.

    My reasoning is that now that crypto is widespread and people are paying attention to it unlike before. Also, before in 2017 most projects were just white paper and promises and valued at billions while now we have actual working products and adoption. Think of the 2017 crash like the dot-com bubble with companies like Pets.com failing but after that it was generally up and up and giants like Amazon rose. You have the housing bubble in 2008 but it wasn't as bad and then till now it was all the way up.
     
    #19     Nov 22, 2021
    johnarb likes this.
  10. Yes, we are still early. Not early early but early.
    Crypto is a total wealth transfer from old financial system to new, and so far it's only 12 years. The whole process will take decades to happen but the opportunity for maximum gains are slowly closing in.
     
    #20     Nov 22, 2021
    johnarb likes this.