Does >90k bitcoin cause anybody to rethink?

I doubt that the disbelievers will change their mind regardless of how high the price goes. To them, it's probably just an increasingly larger bubble.

Norwegian portfolio manager Robert Næss posted this on Twitter last week.

Quick translation: "The Norwegian Government Pension Fund amounts to an incredible 19.540 billion NOK and it's created based on fossils which have accumulated over billions of years. Today, we must see ourselves beaten by a home made payment system. #Bitcoin is now worth more than the entire Government Pension Fund."

In a follow-up post where somebody asks if he's still a critic, he replies: "I still don't think it has any value, but it does hurt a bit to see the prices continuing to go higher."



Personally, I'd be curious as to what happens the next time we see a sell-off in risk assets. If history is an indicator, Bitcoin will follow along.

Anyway, congratulations to everyone who's holding and making beautiful gains from cryptocurrencies!

 

You need to understand that money is just one big ledger. How much your money is worth is directly proportional to how much money there is out there. When they print money, it's obvious that this very quickly devalues the currency because there are many more currency units chasing the same goods and services.

The money that you are used to might not appear like a ledger in a book, but it still is a ledger because there is an amount of money that the government has produced circulating out there. The government knows how many dollars they issued and the economy has a sense of what those dollars are worth because we can easily track what people are willing to exchange their dollars for.

This is maybe why you are perhaps having trouble seeing that Bitcoin is money and a store of wealth because you haven't seen that money itself is already a ledger.

So if you understand that money is already a ledger, then it's easy to see how the government having the power to control how much money is out there is a system that is open to lots of abuse.

If you use blockchain technology to keep track of this ledger and ensure that everyone is using the same ledger and ensure that nobody can inflate the supply of Bitcoin, and that the issuence schedule is predetermined into the future, then this makes for a much more stable system.

 

I think that on the one hand, Bitcoin provides huge liquidity so it's always the first thing to dump anytime there is a shock.

But I also think that with each cycle, bitcoin has developed a much larger user base and the whales are getting less numerous and also each have less coins.

On the flip side, you also have companies like microStrategy that holds a significant amount, and if they never sell like they say, then the so-called float of available bitcoins is smaller which means that the liquid supply of Bitcoin being smaller has a greater influence on what happens to price. They say that price is set on the margins, and so a small amount of liquid Bitcoin might be responsible for major price swings.

So I can see how a much more distributed Bitcoin means that the selling shouldn't be as extreme and effect price too negatively, but because there is less liquid Bitcoin out there, then whatever selling there is, might also mean that the price drops unfavorably.

And yet another variable is the fact that I think Bitcoin is extremely undervalued if we consider how it should easily reach 10% of all global assets and surpass gold given that bitcoin has superior properties over gold. So any 20 or 30% correction could easily be scooped up for long-term holding.

I realize I'm saying that it can both either drop a lot or just drop a little...lol... But I don't think any outcome is negative for long-term. There must be a ton of people waiting for an 80% correction, and this will likely never happen again because corporations and other countries will provide a relentless bid below any significant correction.

 

I wonder what that portends...

 

All it means is that Bitcoin is being more distributed amongst a growing user base. Stop thinking that everything in Bitcoin is a trap to get you

I also noticed that you have absolutely no reply to my suggestion that Fiat currency is already a ledger in some respects. The fact that you're not throwing out a counter-argument means that you don't disagree with this assessment, but it kills you to admit this. Heaven forbid that you actually have to admit that you understand the ledger nature of money and that this would naturally infer that the best ledger in the world would be the best form of money.

 

A “ledger” backed by the government. Bitcoin is a “ledger” backed by a…ledger?”

 

Have you checked the definition of ledger lately?

 

Backed by the government means manipulated at will by the government.