I have a confession; If the price of bitcoin stayed at $6,400 for the next ten years, I would be fine with that. I realize this is an incredibly unrealistic outcome and not shared by most. I'm just saying that if 'all' bitcoin does is safely protect my money, I'm cool with that.pic.twitter.com/n9eq0tDJZX
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the way I think about it is that it's only worth investing in a currency during a monetization event, and at stable equilibrium it's not worth investing in with the expectation of return. we just so happen to be witnessing a monetization event.
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once a century or so there's a changing of the monetary guard and a new reserve currency is born. but investing in the new currency doesn't work, even if there is a lots of new demand, since the state performs seignorage and captures the upside. bitcoin doesn't have that ability.
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to put it otherwise, 'cryptocurrency investor' is only a profession in the same way that 'soviet union distressed assets acquirer' is a profession. it's an opportunistic trade, and when it's done it'll be done.
End of conversation
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No. This is fundamentally false. Owning a share of a dividend stream is not the same as owning a currency.
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What's the difference?
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A currency is not a productive asset; it doesn’t represent ownership share of capital goods. Instead it value is tied to its utility as a store of value and medium of exchange.
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A
#currency appreciates in value = "productive asset". Stock appreciates in value = "productive asset"... -
The stock is not a productive asset because it increased in value, but rather because it represents title to capital (machines, factories, 18 wheelers, etc) used in the production of more capital or consumer goods. Currency is zero sum.
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The crux is that the
#stock is a "productive asset" notwithstanding, and currency is a "productive asset" too... -
There would be no money market to trade
#currencies for profit, or invest in#cryptocurrencies for instance, if there is no reasonable expectation of profit, or the overall currency value appreciation... The difference between stock & currency ain't a big tell. - 1 more reply
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