Cryptocurrencies

[Liberty]

I didn't cite any of the value investing sayings here. You are mistaking me with another user.

 

You're right, I misread the 4-deep quote, I thought you were the person I replied to replying to my reply.

 

I also would like to post some numbers:

 

VRX (now BHC) : -90% below all-time high

FTP (now FGE): -98 below all-time high

 

Why am I posting these numbers? To act like you.  8)

 

So you're saying that crypto was also a huge mistake? Because these two were huge mistakes, and them being down this much isn't just short term volatility and the chances of them bouncing back to their peaks anytime soon is pretty slim.

 

Oh, were you trying to shame me or something? How about you share some of your huge mistakes instead? It's the best way to avoid them, by removing resistance in acknowledging them, so that we can do it faster the next time.

 

btw, I lost about 20% of my initial investment in Valeant, but that was after it went up around 150% and then back down to that level, so it was quite a ride. I lost a higher % in FTP, but I'd have to look in my notes to know exactly how much. I certainly learned a lot about jockey vs horse and about commodity businesses in that one.

[rkbabang]

I didn't cite any of the value investing sayings here. You are mistaking me with another user.

 

You're right, I misread the 4-deep quote, I thought you were the person I replied to replying to my reply.

 

I also would like to post some numbers:

 

VRX (now BHC) : -90% below all-time high

FTP (now FGE): -98 below all-time high

 

Why am I posting these numbers? To act like you.  8)

 

So you're saying that crypto was also a huge mistake? Because these two were huge mistakes, and them being down this much isn't just short term volatility and the chances of them bouncing back to their peaks anytime soon is pretty slim.

 

Oh, were you trying to shame me or something? How about you share some of your huge mistakes instead? It's the best way to avoid them, by removing resistance in acknowledging them, so that we can do it faster the next time.

 

btw, I lost about 20% of my initial investment in Valeant, but that was after it went up around 150% and then back down to that level, so it was quite a ride. I lost a higher % in FTP, but I'd have to look in my notes to know exactly how much. I certainly learned a lot about jockey vs horse and about commodity businesses in that one.

 

But what if at the price you bought FTP you were still up 1500%-2000% right now when someone was posting "FTP -98% below all-time high"?  I mean, yeah, sure. It would have been better for me to sell everything in December of 2017 and buy it all back now, but my unrealized gains are still pretty spectacular and I do think it will get back to those highs and beyond someday.

 

[Liberty]

But what if at the price you bought FTP you were still up 1500%-2000% right now when someone was posting "FTP -98% below all-time high"?  I mean, yeah, sure. It would have been better for me to sell everything in December of 2017 and buy it all back now, but my unrealized gains are still pretty spectacular and I do think it will get back to those highs and beyond someday.

 

Why are you taking personal that someone cites the drawdown since peak? Why do you feel you have to defend it and attack others and invent hypothetical situations that didn't happen? Isn't drawdown-from-peak a valid way to look at a big crash? Why always have to shift the context to one that makes it sound like it's up a lot rather than down a lot?

 

If you made lots of money good for you. That's your reward. You are in a very very very small minority of people. Almost all the attention and money went into crypto way above the current level, and many bought on credit because of FOMO and lost more than they put in. It was similar with the dot-com bubble, by the time everybody was jumping in and the big bucks came in, it was a lot nearer the top than the bottom.

[rkbabang]

But what if at the price you bought FTP you were still up 1500%-2000% right now when someone was posting "FTP -98% below all-time high"?  I mean, yeah, sure. It would have been better for me to sell everything in December of 2017 and buy it all back now, but my unrealized gains are still pretty spectacular and I do think it will get back to those highs and beyond someday.

 

Why are you taking personal that someone cites the drawdown since peak? Why do you feel you have to defend it and attack others and invent hypothetical situations that didn't happen? Isn't drawdown-from-peak a valid way to look at a big crash? Why always have to shift the context to one that makes it sound like it's up a lot rather than down a lot?

 

If you made lots of money good for you. That's your reward. You are in a very very very small minority of people. Almost all the attention and money went into crypto way above the current level, and many bought on credit because of FOMO and lost more than they put in. It was similar with the dot-com bubble, by the time everybody was jumping in and the big bucks came in, it was a lot nearer the top than the bottom.

 

Because past results has nothing to do with the future of the asset class.  Technology and the internet didn't die because there was a crash in 2000-2001.  Lots of people lost a lot of money then too.  What's the point of pointing out that at $6 per share Amazon.com was down over 90% from the top?  What good is such an observation?  Yes there was a bubble and it popped more than a year ago.  Like all such bubbles a lot of people lost money.  People lost a lot of money in the housing crash and people will lose a lot of money in the coming Canadian housing crash.  That doesn't mean houses will never be valuable again.  Such is the way markets go sometimes.

 

[Liberty]

Because past results has nothing to do with the future of the asset class.  Technology and the internet didn't die because there was a crash in 2000-2001.  Lots of people lost a lot of money then too.  What's the point of pointing out that at $6 per share Amazon.com was down over 90% from the top?  What good is such an observation?  Yes there was a bubble and it popped more than a year ago.  Like all such bubbles a lot of people lost money.  People lost a lot of money in the housing crash and people will lose a lot of money in the coming Canadian housing crash.  That doesn't mean houses will never be valuable again.  Such is the way markets go sometimes.

 

I never said these other things, you said them.

 

I just posted a list of numbers, and everybody lost their minds.

[clutch]

Because past results has nothing to do with the future of the asset class.  Technology and the internet didn't die because there was a crash in 2000-2001.  Lots of people lost a lot of money then too.  What's the point of pointing out that at $6 per share Amazon.com was down over 90% from the top?  What good is such an observation?  Yes there was a bubble and it popped more than a year ago.  Like all such bubbles a lot of people lost money.  People lost a lot of money in the housing crash and people will lose a lot of money in the coming Canadian housing crash.  That doesn't mean houses will never be valuable again.  Such is the way markets go sometimes.

 

I never said these other things, you said them.

 

I just posted a list of numbers, and everybody lost their minds.

 

I'd say, a fine display of schadenfreude masked as faux naif.

[writser]

I just posted a list of numbers, and everybody lost their minds.

 

I do have to agree with Clutch here. Some of the stuff you post here is more 'rubbing it in' than 'informative'. Which is perfectly fine with me (I'm enjoying the crypto nonsense collapse too), but don't pretend to be surprised when people take the bait.

[Liberty]

I didn't know this was a "positive posts only" thread. There's plenty of crypto boosters around here, and nobody gets much on their case for not posting the negative stories, so why is it a big deal if I post a few negative numbers without always making sure to put a positive spin on things? Crypto snowflakes? ¯\_(ツ)_/¯

[Liberty]

I'd say, a fine display of schadenfreude masked as faux naif.

 

This emotion is in your own mind, and you're projecting it.

 

In mine, there's absolutely no pleasure at what has been happening in crypto. In fact, I was quite glad that a bunch of early adopters were making large donations to some non-profits that I support, and I've been interested by cryptography since the 90s (the PGP book!) and quite like following the technical side of the field.

 

I post things that I find interesting. I'm under no obligation to post about both sides or whatever, I'm not a wire service. I've been following the inflation and deflation of this bubble with interest, and when I saw that someone had compiled those numbers, I thought it was striking (I hadn't seen them before) and gave it literally 10 seconds of thought. Had I known I would be facing a grand jury on it, maybe I wouldn't written down a contemporary memo detailing my state of mind to make sure my good faith wasn't impugned.

[Sportgamma]

Guys, I think we should leave it at that. This is turning into the Corner of Wisteria Lane and Melrose Place...

[SharperDingaan]

Liberty simply chose data points that are more sensational than relevant. Click bait.

It would have been more powerful if he'd also included the number of dead coin, as a % of all coin issued.

 

Sure, most crypto has lost 90%+ of it's peak value; yet despite that, Bitcoin (the monster), has dropped the least of all them.

Maybe because Bitcoin is the only one you can hedge with options/futures? if you know how?

 

Sure a lot of people lost a lot of money, greed's a bitch.

Others made a lot of money on their 'crypto' investments, and continue to do so today; but they all have deep knowledge in the technology/asset class. Sadly, jelously is part of life, and nobody likes the winner - when it isn't them.

 

Crypto isn't going away.

There are quite a few very practical applications for utility coin, but they aren't public, and there's little interest in making them public. Many of them 'hiding' in plain sight, that you and I have been actively using for years, and take for granted. Everytime you have 'redeemed' a travel point, or a 'gift card', what did you think you were doing  ;)

 

SD

 

[roughlyright]

People who write off bitcoin without taking a deep dive, need to spend at least a week understanding the technology.

 

I recommend people to read this article, which explains the case for bitcoin very well.

 

https://medium.com/@vijayboyapati/the-bullish-case-for-bitcoin-6ecc8bdecc1

 

Please offer your criticism to the above post. fiat money has become hot potato money, as it is a bad store of value. Bitcoin has already proven itself as a good store of value based on the last 10 years of history. It is almost inevitable that more and more people will realize how scarce this asset is with time, and realize how immutable its monetary policy is.

 

Today we have 193 countries. I take one individual from each country and ask them the same question to all the 193 people. How many bitcoins will be in circulation in the January 1st, 2050? I will get the same exact answer down to the 8th decimal about the number of bitcoins and I will get the same exact answer from all the 193 people. The reason we get the same answer because all the 193 countries agree on mathematics and know how to calculate the supply of coins based on a simple formula. Do you agree or disagree?

 

Now, I ask all the 193 individuals to tell me how many units of their fiat currency will exist in the January 1st, 2050 from their own country. Nobody will be able to give me an answer. Why? nobody on this planet knows how many units of fiat currency of their country will exist in 2050 as it is controlled by politicians and their cronies. Therein lies the value proposition of bitcoin and its immutable monetary policy.

 

Eventually, it becomes a simple question. I have currency here that is inflating at a rate of 0.0001% per year and another currency that is inflating at a rate of 8%. Where should I store the fruits of my labor or wealth? In other words, which is a better store of value? each person will ask this question and will come to the same conclusions. In my view, Immutable monetary policy is a powerful weapon carried by bitcoin and wages war against all fiat currencies and even against gold which inflates at a rate of 1.7% every year.

[rkbabang]

People who write off bitcoin without taking a deep dive, need to spend at least a week understanding the technology.

 

I recommend people to read this article, which explains the case for bitcoin very well.

 

https://medium.com/@vijayboyapati/the-bullish-case-for-bitcoin-6ecc8bdecc1

 

Please offer your criticism to the above post. fiat money has become hot potato money, as it is a bad store of value. Bitcoin has already proven itself as a good store of value based on the last 10 years of history. It is almost inevitable that more and more people will realize how scarce this asset is with time, and realize how immutable its monetary policy is.

 

Today we have 193 countries. I take one individual from each country and ask them the same question to all the 193 people. How many bitcoins will be in circulation in the January 1st, 2050? I will get the same exact answer down to the 8th decimal about the number of bitcoins and I will get the same exact answer from all the 193 people. The reason we get the same answer because all the 193 countries agree on mathematics and know how to calculate the supply of coins based on a simple formula. Do you agree or disagree?

 

Now, I ask all the 193 individuals to tell me how many units of their fiat currency will exist in the January 1st, 2050 from their own country. Nobody will be able to give me an answer. Why? nobody on this planet knows how many units of fiat currency of their country will exist in 2050 as it is controlled by politicians and their cronies. Therein lies the value proposition of bitcoin and its immutable monetary policy.

 

Eventually, it becomes a simple question. I have currency here that is inflating at a rate of 0.0001% per year and another currency that is inflating at a rate of 8%. Where should I store the fruits of my labor or wealth? In other words, which is a better store of value? each person will ask this question and will come to the same conclusions. In my view, Immutable monetary policy is a powerful weapon carried by bitcoin and wages war against all fiat currencies and even against gold which inflates at a rate of 1.7% every year.

 

Exactly.  It is a store of value.  The mistake people are making, even here on a value investing board of all places, is equating price with value.  As someone once said, price is what you pay, value is what you get.  In the long term the value of Bitcoin will be obvious and its price will reflect that.

 

[SharperDingaan]

You might want to be remind yourself that you are ONLY talking Bitcoin here,

and NOT the other crypto.

 

You might also want to consider human nature.

The store of value is based on a maximum 21M coin, a number set by humans. People change, key folks die, circumstances change.

Todays 21M limit can, and probably will, change at some point in the future.

 

And recognize that the store of value ..... also has to hold its value.

Yesterdays $1.00 Bitcoin, selling for 2c today, hasn't exactly done its 'store of value' job very well.

 

SD

 

[wachtwoord]

You might want to be remind yourself that you are ONLY talking Bitcoin here,

and NOT the other crypto.

 

 

Who cares about the other ones? ;)

[roughlyright]

You might want to be remind yourself that you are ONLY talking Bitcoin here,

and NOT the other crypto.

 

You might also want to consider human nature.

The store of value is based on a maximum 21M coin, a number set by humans. People change, key folks die, circumstances change.

Todays 21M limit can, and probably will, change at some point in the future.

 

And recognize that the store of value ..... also has to hold its value.

Yesterdays $1.00 Bitcoin, selling for 2c today, hasn't exactly done its 'store of value' job very well.

 

SD

 

No idea what you are talking about here. If you have invested in $25 into bitcoin in May 2010, It would have been worth $40 million dollars today. That is a simple fact. Verify this yourself.

 

https://qz.com/1285209/bitcoin-pizza-day-2018-eight-years-ago-someone-bought-two-pizzas-with-bitcoins-now-worth-82-million/

 

At the time when this article is written it was worth 82 million. Today, the same 10,000 bitcoins are worth, $40 Million dollars. It is quite obvious that Crypto Assets are the best performing asset on a 10-year basis with a huge margin.

 

 

[SharperDingaan]

Oh, I think you do ..

https://www.coinbase.com/price/bitcoin

 

Feb 18 2019, 1 BTC was worth 3,578 USD. 35.7M for that 10,000 BTC pizza

One year ago, Feb 19, 2018, 1 BTC was worth 11,491 USD - and that 10,000 BTC pizza cost 114.9M

 

Hey bro, where did my 79.2M go ? (114.9 - 35.7). 'Store of value' man! from your pocket into mine  ;)

Not quite how 'store of value' is supposed to work!

 

SD

 

 

You might want to be remind yourself that you are ONLY talking Bitcoin here,

and NOT the other crypto.

 

You might also want to consider human nature.

The store of value is based on a maximum 21M coin, a number set by humans. People change, key folks die, circumstances change.

Todays 21M limit can, and probably will, change at some point in the future.

 

And recognize that the store of value ..... also has to hold its value.

Yesterdays $1.00 Bitcoin, selling for 2c today, hasn't exactly done its 'store of value' job very well.

 

SD

 

No idea what you are talking about here. If you have invested in $25 into bitcoin in May 2010, It would have been worth $40 million dollars today. That is a simple fact. Verify this yourself.

 

https://qz.com/1285209/bitcoin-pizza-day-2018-eight-years-ago-someone-bought-two-pizzas-with-bitcoins-now-worth-82-million/

 

At the time when this article is written it was worth 82 million. Today, the same 10,000 bitcoins are worth, $40 Million dollars. It is quite obvious that Crypto Assets are the best performing asset on a 10-year basis with a huge margin.

[clutch]

Oh, I think you do ..

https://www.coinbase.com/price/bitcoin

 

Feb 18 2019, 1 BTC was worth 3,578 USD. 35.7M for that 10,000 BTC pizza

One year ago, Feb 19, 2018, 1 BTC was worth 11,491 USD - and that 10,000 BTC pizza cost 114.9M

 

Hey bro, where did my 79.2M go ? (114.9 - 35.7). 'Store of value' man! from your pocket into mine  ;)

Not quite how 'store of value' is supposed to work!

 

SD

 

 

You might want to be remind yourself that you are ONLY talking Bitcoin here,

and NOT the other crypto.

 

You might also want to consider human nature.

The store of value is based on a maximum 21M coin, a number set by humans. People change, key folks die, circumstances change.

Todays 21M limit can, and probably will, change at some point in the future.

 

And recognize that the store of value ..... also has to hold its value.

Yesterdays $1.00 Bitcoin, selling for 2c today, hasn't exactly done its 'store of value' job very well.

 

SD

 

No idea what you are talking about here. If you have invested in $25 into bitcoin in May 2010, It would have been worth $40 million dollars today. That is a simple fact. Verify this yourself.

 

https://qz.com/1285209/bitcoin-pizza-day-2018-eight-years-ago-someone-bought-two-pizzas-with-bitcoins-now-worth-82-million/

 

At the time when this article is written it was worth 82 million. Today, the same 10,000 bitcoins are worth, $40 Million dollars. It is quite obvious that Crypto Assets are the best performing asset on a 10-year basis with a huge margin.

 

So, between 2012 and 2013, the price of gold dropped about 25% in a year. Gold is not considered as a store of value?

 

The volatility is greater in case of Bitcoin but I don't think that alone refutes the hypothesis that it could be a store of value.

[wachtwoord]

Store of value is in the long term (not silly year over year changes). If I buy it now will it, with high likelyhood, have at least the same purchasing power in 10, 20, 50 and 100 years from now?

 

This is why gold is still a better store of value (higher likelihood) but bitcoin has orders of magnitude more upside.

[Investmentacct]

Oh, I think you do ..

https://www.coinbase.com/price/bitcoin

 

Feb 18 2019, 1 BTC was worth 3,578 USD. 35.7M for that 10,000 BTC pizza

One year ago, Feb 19, 2018, 1 BTC was worth 11,491 USD - and that 10,000 BTC pizza cost 114.9M

 

Hey bro, where did my 79.2M go ? (114.9 - 35.7). 'Store of value' man! from your pocket into mine  ;)

Not quite how 'store of value' is supposed to work!

 

SD

 

 

You might want to be remind yourself that you are ONLY talking Bitcoin here,

and NOT the other crypto.

 

You might also want to consider human nature.

The store of value is based on a maximum 21M coin, a number set by humans. People change, key folks die, circumstances change.

Todays 21M limit can, and probably will, change at some point in the future.

 

And recognize that the store of value ..... also has to hold its value.

Yesterdays $1.00 Bitcoin, selling for 2c today, hasn't exactly done its 'store of value' job very well.

 

SD

 

No idea what you are talking about here. If you have invested in $25 into bitcoin in May 2010, It would have been worth $40 million dollars today. That is a simple fact. Verify this yourself.

 

https://qz.com/1285209/bitcoin-pizza-day-2018-eight-years-ago-someone-bought-two-pizzas-with-bitcoins-now-worth-82-million/

 

At the time when this article is written it was worth 82 million. Today, the same 10,000 bitcoins are worth, $40 Million dollars. It is quite obvious that Crypto Assets are the best performing asset on a 10-year basis with a huge margin.

 

You are correct . Point of comparison comes in to play. However, what point bitcoiners are making is this:

1973 $1 USD buys 3 slice of pizza (30 cents each). Today's same 1$ buys us 1/4 or 1/5th of a slice ; pegging one slice at 4 USD.

 

So, store of value of dollar we have would have debated in long time; but would starve if storing value in dollars when buying pizza. Value transferring mechanisms (equity, real estate, bonds) etc in dollars still able to purchase same or more pizza with no value lost.

 

You have hit nail on 21 million  BTC Max allowed on algorithm or protocol level . Asking question, who can change Max limit on Bitcoin (algorithm). Or why there are 100 million Satoshis  for 1 Bitcoin. There are 21 million millionaires in whole world. So, buying one Bitcoin get currently some pricey/cheap real estate option which has limited quantity set and set to never create additional. Currently there are 17 million so called mined available BTC exist.

 

Beauty of system lies in , it solves byzantine general's old computer science problem . which restricts participants to bluff and creates zero trust system by making costly to bluff.

 

There are more questions than answers, since it's a standard / protocol system. Protocols changes are not permitted by the players who have adopt them for longer run. This is similar to internet in how TCPIP remains Central to communication.

 

Some questions could be: what potentially breaks Bitcoin standard. Participants withdrawal from the game (HODLers becoming non-hodlers). System crossed 10 year recently and presented good use cases for hyperinflationary places (Venezuela, Argentina) etc.

[roughlyright]

I would say changing the supply of bitcoin has been tried 100s of times already. Some people have counted more than 200 forks of bitcoin code and nobody adopts them. Every one of them, 50 million or so users have come to the bitcoin network because of immutable monetary policy.

 

So anyone who owns as small a 1 satoshi ( that is 100 millionth of a bitcoin) is not going to agree for any sort of dilution. So the users who run full nodes will never consent to the change. Why would anyone willing to lose their money? With fiat money, inflation is forced upon us by central banks printing of currency. nobody wants their money diluted.

 

so if anyone creates a fork of bitcoin, obviously they can increase the supply to 21 Quadrillion or whatever number they want. But the question is why would the users, merchants, miners, speculators, developers, and all the exchanges, CME, CBOE, NYSE will abandon bitcoin, and voluntarily move to something that dilutes its value?

 

The second argument is that nobody is in control of bitcoin. No human, no company, no government. The moment, someone copies the code and changes some parameters, that means he is in control of that coin. That will suffer from the same exact problems we face today with fiat currencies and having central banks in charge. Why will the humanity as a whole will abandon a currency which not controlled by anyone and gives that control over to some idiot?

 

Today the amount of energy consumed by bitcoin network is close to 7 trillion laptops. If you want to run a centralized party, you don't need to expend all of this energy. You could have a simple database on a single laptop and run your bitcoin node. Why bother with decentralization? money is just a number in the database. We can hand over the control of the money supply to a single laptop and one trusted smart guy. This will save us a lot of energy and we run the database on MySql database and few lines code. Next day, FBI will break down his door and put that single guy in jail. My point is that bitcoin is extremely redundant for a reason. We want the money supply to be controlled by mathematics than corrupt politicians. Without the power of the decentralized network, it will be easily run over by our corrupt politicians, who control all the military.

[SharperDingaan]

'Store of Value' is THREE things;

1) the 'store' itself, 2) the cost to 'transact' with the store, and 3) the anticipated length of the storage period.

 

If I used my house as the 'store', the cost is maybe a low 3-6% (buy & sell commissions), but my 'store' is not unique.

If I used Bitcoin as the 'store', the most recent 12 month nominal loss  on sale (transaction cost) had I sold - would has been very high, but my 'store' is unique.

But if I intended to hold that Bitcoin for 'N' years, and could expect a nominal fiat currency gain on sale (because of inflation) when I sell, then Bitcoin is a great store!

 

Yes the tech is wonderful.

But I just want the 'store of value' to be able to give me my money back, anywhere, when I want, at a net zero cost.

Whether that 'store of value' is BTC, diamonds, gold, carpets, cars, art, houses, or sea shells - I don't really care.

 

Look around you ....

Where are the rich people 'storing their wealth' ?

Houses, social connections, stock/bonds ........ BTC is far down the list.

 

SD

 

 

 

 

[Fat Pitch]

Anyone who is skeptical about blockchain usecase needs to look at https://codaprotocol.com/

 

Using recursive zk-snarks allows for the blockchain database to be a constant size (a few KB) while maintaining everyone's account balances and smart contract state. Now that these systems can scale by orders of magnitude how will this change global trade?

[roughlyright]

'Store of Value' is THREE things;

1) the 'store' itself, 2) the cost to 'transact' with the store, and 3) the anticipated length of the storage period.

 

If I used my house as the 'store', the cost is maybe a low 3-6% (buy & sell commissions), but my 'store' is not unique.

If I used Bitcoin as the 'store', the most recent 12 month nominal loss  on sale (transaction cost) had I sold - would has been very high, but my 'store' is unique.

But if I intended to hold that Bitcoin for 'N' years, and could expect a nominal fiat currency gain on sale (because of inflation) when I sell, then Bitcoin is a great store!

 

Yes the tech is wonderful.

But I just want the 'store of value' to be able to give me my money back, anywhere, when I want, at a net zero cost.

Whether that 'store of value' is BTC, diamonds, gold, carpets, cars, art, houses, or sea shells - I don't really care.

 

Look around you ....

Where are the rich people 'storing their wealth' ?

Houses, social connections, stock/bonds ........ BTC is far down the list.

 

SD

 

It is true that today people use stocks and bonds today to store wealth. but once it becomes apparent to investors how scarce bitcoin is, money will rush from other stores of value, like precious metals, stocks, bonds, and fiat currency deposits. You want to skate the where the puck is going to be not where it is today.

 

Another advantage of bitcoin is that you don't need to perform a detailed analysis of any company and trust the accounting of a stock. It remains independent of all the risks that come from investing in stocks and the dependence on Federal Reserve. Many studies have established that bitcoin market is uncorrelated to other traditional assets. Today close to 9 trillion dollars worth bonds have negative nominal yields, let alone real yield. If 5% of it moves to BTC, what will happen to the price of bitcoin?

[SharperDingaan]

Much is made of the 21M cap.

Problem is that BTC is not scarce, UNTIL that cap is eventually reached. The second problem is what does the cap include? Are the BTC in frozen wallets (lost the keys) included in that 21M?  - 'cause if they aren't, it's hard evidence that the cap can, and has been changed; upwards (ie: inflation).

 

The 'risk' also didn't go away, it just got swapped.

BTC offers the most value to the criminal element, and BTC security ultimately rests on their material presence. Russian and Chinese hackers are very good, but nobody hacks their patrons as it leads to a very short life ;) Hence asset class non-correlation, comes at the cost of criminal association. Not always a bad thing, if the alternative is reliance on a corrupt cental banker.

 

BTC is just another brand of soap; there are lots of competing brands (stores of value), and there always will be.

There will also be competing central banker token (CBDC), that is interest bearing.

5% capture of the existing gold allocation seens overly optimistic

 

SD