DeacMan
Well-known member
- Joined
- Mar 20, 2011
- Messages
- 9,708
- Reaction score
- 948
FTX, fraud. Binance, super shady IMO. Coinbase, not so much IMO given the SEC's position is they've been operating illegally without proper licenses since 2019 but permitted them to be investable by unaccredited investors starting in 2021 (bizarre). Again, examples of why sound regulation is needed.I didn’t say it was a scam, although the “brokerages” certainly seem to be. I don’t think the financial system is rigged or whatever either, and i doubt ph or “folks” think it’s rigged in such a way that bitcoin would be particularly appealing to them.
I understand the underlying technology, what doesn’t necessarily follow is why a bitcoin is worth $X vs $Y. It looks like a meme stock. Great if you got in on the ground floor, it turned out well for you then. Like GameStop. Doesn’t mean it’s destined to fall off a cliff but what reason is there to believe it’ll grow?
That’s just my opinion as an apparently zero risk tolerant investor (lol). Also I don’t hold any gold so let me stop you right there.
I know you never said BTC was a scam. Ph said crypto is a scam - which presumably means all of it. I also never said you were a low risk tolerance investor. I just noted that would be one reason someone (you or anyone) might refuse to make an allocation to BTC.
BTC to me is a hedge that the world is in the midst of a very long deflationary economic cycle. And given the explosion of debts globally that need to be serviced the possibility that is correct seems more, not less likely, as time passes. And, even if that is not ultimately correct, so far that hedge over a period of 15 years has driven asymmetric returns. So let's say you don't have a thesis for why it may grow (so far it has grown IMO bc the network continues to attract new users globally). Given the growth it has demonstrated why would it not be something worthy of allocation? IOW, if you aren't long with something you are just short. At least so far being short has not been a good long term proposition as BTC has outperformed pretty much every asset on earth since its inception. You're correct that future results may not mirror past performance. You might lose all your allocation. But is no allocation the right bet? I don't know. But given past performance I have some exposure as part of a broader portfolio. By no means do I advocate anyone bet a lot on it.
Also, I do hold some gold (not physical) for the same hedge reason. That's been a much slower grind since the collapse of the markets during the GFC.