To quote the original study here (page 14): https://www.bostonfed.org/publicati...t-over-the-life-cycle-and-business-cycle.aspxhttps://www.bostonfed.org/publications/research-department-working-paper/2015/consumer-revolving-credit-and-debt-over-the-life-cycle-and-business-cycle.aspx : Between the ages of 25 and 50, only around 35 percent of the credit card-using population—those who would show up in figure 5 with positive debt in the Equifax/CCP data—were not revolving at least some of their debt from month to month. Starting at age 55, the fraction of non-revolvers slowly increases to 55 percent by age 70. This said, using a card with cash-back and benefits (AMEX Platinum, for example) is smart if you pay the balance in full. Anyway, this is very tangential to the bitcoin discussion.
The bitcoin source code is open source so you can just start your own clone. Then second generation coins came along with asset exchanges built in (NXT) and full Turing complete programming languages on the blockchain (Ethereum). Treat it as competing computer science projects and invest in the stories you like as if you are a venture capitalist. I invested in NXT a few years ago and thought I had lost my investment but it has come back to life and gone exponential.
Corrected this one for you I am all for the leverage, but at the right price - credit card debt is certainly NOT the right price
Disagree, hecause Well, that depends and everything is relative. Many business people launch on 20% credit card debt and hard money extreme interest loans have kept many a real estate guy afloat. Not to mention junk bonds revolutionizing markets. Price of credit is irrelevant unless it is comoared to potential return. surf
For junk bonds, there was a study (if my memory serves me right) that showed that proportional risk premium actual decreases as the yield increases. So that means that at some level you can't expect to have sufficient returns to cover the interest expenses (pay day loans come to mind in private loan business). That begs an interesting question - "what level of interest payment is sustainable for a startup business?". PS. I did say "affordable". Obviously, what one can afford depends on the net cash flow, but 15% is a pretty high hurdle to clear and it adds up pretty quick.
I'll bite, just exactly how is this a negative for bitcoin? Bad marketing gonna hurt next quarter's earnings? Ransomware was $1B business last year, and it's growing more and more. More demand for bitcoin, no?
What is the p/e ratio on cash? Warren Buffett compares the p/e ratio on cash with the company he is buying.