No. No it doesn’t. That makes no sense on its face. A currency serves one purpose— to mediate exchange and serve as legal tender for settling debts. The purpose of a central bank is to facilitate that by maintaining medium term price stability. The very idea of investing in a...
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Replying to @AImas8706 @pierre_rochard and
... currency in the belief that it’s a “value” asset is contradictory to the purpose of a currency and shows remarkable ignorance of what makes something a “growth” or “value” stock. This isn’t debatable— it’s just super wrong and incoherent.
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Pierre Rochard Retweeted Pierre Rochard
It’s important for you to understand that this explains the difference between a value currency and a growth currency: https://twitter.com/pierre_rochard/status/1065018543408857088?s=21 … It’s not exactly the same as with equities, though there are some parallels.
Pierre Rochard added,
Pierre Rochard @pierre_rochardGrowth currencies have a completely different set of holders than value currencies Growth has speculators interested in sustainable competitive advantages that will drive long term adoption of the growth currency Value has speculators waiting for better investing opportunities https://twitter.com/pierre_rochard/status/1065015772391575552 …Show this thread1 reply 1 retweet 18 likes -
Yeah that thread is incoherent. Smart investors hold currency for liquidity not as an investment. Very occasionally they’ll bet on relative value, but very few do because it’s a zero-sum game, unlike equities. People bet on growth assets because they expect growing cash flows...
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Purchasing and holding a currency is not an investment, if we define investing as using capital to produce goods and services. It is speculation. There are two primary motives for this speculation: value or growth.
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Yeah, it’s speculation. So is buying magic seeds you think will grow into a beanstalk. Speculating on something whose VERY VALUE is rooted in its purchasing power being stable and NOT growing is an incoherent concept. You don’t get that. It’s... not good.
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I’m sorry the word “speculation” triggers you so much, but we must be precise in our terminology, and it is the best word for describing why cash balances are held.
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LOLOLOLOLOL no again. The best word for why cash balances are held is “liquidity.” Holy God I hope no one reads your feed and mistakes anything you say for insight... this is hilariously bad.
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Liquidity is the most important criteria when speculating on value currencies. However, it is not the most important criteria when speculating on growth currencies, as you are speculating on what will cause liquidity to increase in the future. Other criteria are needed!
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Oh lord. Liquidity is literally the only reason to own a currency. That’s 100% of it. The alleged value of a currency is that you’ll be able to settle debts with it and buy goods and services at a stable value. That’s all of it. What you’ve done here is made up an entirely...
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Replying to @AImas8706 @pierre_rochard and
So store your money out on the sidewalk, I'm sure the resulting new owners will also find it very liquid.
8:49 PM - 21 Nov 2018
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