I own Bitcoin. I bought back in 2015, when it was still relatively new. Back then, all the talk was about all the cool things you would eventually be able to do with Bitcoin. It would enable smart contracts and a bunch of cool apps could be built atop the Bitcoin blockchain. Eventually, you could pay for a cup of coffee with this new digital currency. There were numerous evangelists, most prominently Andreas Antonopolis, who did a great job of explaining how Bitcoin worked under the hood.
Most of that talk is gone now. Few talk about Bitcoin as a medium of exchange. Now, it's all store of value, or "digital gold." Most of the developers are working on other blockchains. So, I've moved on. I still hold all that I originally bought and am unlikely to sell any time soon (possibly never). But, Bitcoin and most Bitcoiners have moved on from most of the original promise of Bitcoin, even if they still hold all their Bitcoin. There will be some who still tout what I view as the failed Lightning network, but there's not much activity there for reasons that should be obvious.
Also, I'm not one who thinks the introduction of ETFs is a good thing. If all you care about is 'number go up,' then by all means this is a welcome development. But, the malign influence of Blackrock and the other ETF sponsors should not be ignored. These are the groups that control the voting power in your 401ks. That power gave them the ability to foist ESG on all the Fortune 500 companies. How long before they start to alter Bitcoin's original mission?
Finally, I was having a conversation with a colleague just yesterday about this simultaneous rise in Gold and Bitcoin. It's a bit perplexing in some ways. But, I heard a somewhat satisfying explanation today from Jeff Snyder, who puts out a daily podcast at Eurodollar University. His suggestion is that neither gold nor Bitcoin are particularly good inflation hedges. Historically, he appears to be correct. Recently, both Bitcoin and gold plunged in 2022 when inflation really started to tick up. His theory, however, is that both gold and Bitcoin are a response to reckless fiscal policy (which could be inflationary, but also may not be). That seems more accurate to me, as we see $1 trillion of new debt now being created every 100 days and many other problems on the horizon. The gold chart you linked also seems to support this. Gold sold off like everything at the advent of the GFC in 2007 - 08, but it really started to accelerate in 2009 (even though inflation was low).
At any rate, your thoughts on Bitcoin and Gold are appreciated. Thanks for sharing them.
Appreciate your comment. There are a lot of things in here that I wholeheartedly agree with. Blackrock and Larry definitely don't have our bests interests at heart... to put it mildly.
When you buy shares in any of the Bitcoin ETFs you are not buying any bitcoin but rather just price exposer to bitcoin through paper derivative claims! This is VERY different from buying actual bitcoin directly!
You're absolutely correct. The argument wasn't about favoring paper Bitcoin. Whenever possible, owning the actual asset is the way to go, be it Bitcoin or gold. But the reality is that the intricacies of buying and storing Bitcoin are often beyond the reach of many who want exposure to it. Bitcoin ETFs fix that. They are a product for the masses.
I don't believe that the gold ETF GLD holds the amount of physical gold as they claim or as is believed by the investing public. I think that buying shares of the ETF is actually buying a paper claim to other paper claims. You are certainly NOT buying any actual gold.
In another side note - you'd also be remiss to not mention that at the start of Bitcoin Doug Casey said something along the lines of Bitcoin wouldn't last and was worth nothing. Glad he changed his mind!
I own Bitcoin. I bought back in 2015, when it was still relatively new. Back then, all the talk was about all the cool things you would eventually be able to do with Bitcoin. It would enable smart contracts and a bunch of cool apps could be built atop the Bitcoin blockchain. Eventually, you could pay for a cup of coffee with this new digital currency. There were numerous evangelists, most prominently Andreas Antonopolis, who did a great job of explaining how Bitcoin worked under the hood.
Most of that talk is gone now. Few talk about Bitcoin as a medium of exchange. Now, it's all store of value, or "digital gold." Most of the developers are working on other blockchains. So, I've moved on. I still hold all that I originally bought and am unlikely to sell any time soon (possibly never). But, Bitcoin and most Bitcoiners have moved on from most of the original promise of Bitcoin, even if they still hold all their Bitcoin. There will be some who still tout what I view as the failed Lightning network, but there's not much activity there for reasons that should be obvious.
Also, I'm not one who thinks the introduction of ETFs is a good thing. If all you care about is 'number go up,' then by all means this is a welcome development. But, the malign influence of Blackrock and the other ETF sponsors should not be ignored. These are the groups that control the voting power in your 401ks. That power gave them the ability to foist ESG on all the Fortune 500 companies. How long before they start to alter Bitcoin's original mission?
Finally, I was having a conversation with a colleague just yesterday about this simultaneous rise in Gold and Bitcoin. It's a bit perplexing in some ways. But, I heard a somewhat satisfying explanation today from Jeff Snyder, who puts out a daily podcast at Eurodollar University. His suggestion is that neither gold nor Bitcoin are particularly good inflation hedges. Historically, he appears to be correct. Recently, both Bitcoin and gold plunged in 2022 when inflation really started to tick up. His theory, however, is that both gold and Bitcoin are a response to reckless fiscal policy (which could be inflationary, but also may not be). That seems more accurate to me, as we see $1 trillion of new debt now being created every 100 days and many other problems on the horizon. The gold chart you linked also seems to support this. Gold sold off like everything at the advent of the GFC in 2007 - 08, but it really started to accelerate in 2009 (even though inflation was low).
At any rate, your thoughts on Bitcoin and Gold are appreciated. Thanks for sharing them.
Appreciate your comment. There are a lot of things in here that I wholeheartedly agree with. Blackrock and Larry definitely don't have our bests interests at heart... to put it mildly.
When you buy shares in any of the Bitcoin ETFs you are not buying any bitcoin but rather just price exposer to bitcoin through paper derivative claims! This is VERY different from buying actual bitcoin directly!
You're absolutely correct. The argument wasn't about favoring paper Bitcoin. Whenever possible, owning the actual asset is the way to go, be it Bitcoin or gold. But the reality is that the intricacies of buying and storing Bitcoin are often beyond the reach of many who want exposure to it. Bitcoin ETFs fix that. They are a product for the masses.
I don't believe that the gold ETF GLD holds the amount of physical gold as they claim or as is believed by the investing public. I think that buying shares of the ETF is actually buying a paper claim to other paper claims. You are certainly NOT buying any actual gold.
In another side note - you'd also be remiss to not mention that at the start of Bitcoin Doug Casey said something along the lines of Bitcoin wouldn't last and was worth nothing. Glad he changed his mind!
Well, he changed his mind about it in 2017. That's a while ago. He's mentioned this on numerous occasions.