#Bitcoin fails as a money b/c of its naive monetary policy. Many people think government printing too much is evil, so a fixed money supply must be good. The reality: a money that cannot expand would crush the economy and put us all in poverty. Here’s why and how to fix it. To see this we need to understand why monetary deflation and expanding economy do not go together. Let’s simplify so it’s easier to…
The easiest way to de-risk bitcoin is to have governments become miners. Government needs revenue, bitcoin needs legitimacy. It’s a match made in heaven 💍 Not convinced? Let’s break this down 👇 Unlike 3 years ago, you need serious investment to be profitable in bitcoin mining today. Mining startups have been raising capital in the hundreds of million dollars to invest in mining facilities— they see what it will take to remain competitive in this…
Some say: “Central banks will start buying #bitcoin as international reserves and that’ll make price go up”. Totally false. Governments can’t use bitcoin as reserve asset, at least not now. But they could do something else instead 👇 BITCOIN IS NOT QUALIFIED AS RESERVE ASSET Let’s be clear what international reserves are for. They are assets a country uses to: 1) pay for imports & debt, 2) buy and sell in forex market to affect…
Bitcoin maxies tout it as the ultra sound money. But in fact having #bitcoin as the global reserve currency would be one of the worst ideas of the 21st century. It’s not gonna happen. Here’s why👇 1. “Ultra sound money” makes it ultra difficult for anyone to get out of recessions People are having a knee-jerk reaction to monetary policy excess right now. Fed prints too much. Asset prices all inflate. Your money is worth…
In fact, not only ethereum, other newer smart contract chains will also outgrow bitcoin in market cap overtime. This will be obvious to you if you compare the return history of stocks v.s. gold👇 The chart below compares the long-run investment returns* per annum of US stocks vs gold for the past 200 years. Note this is “real returns”, i.e. effect of inflation taken out. (* Data from Deutsche Bank, 2020) Two things stand out:…
Crypto pundits: “Short-term price doesn’t matter. Just buy & hodl forever!” If you follow that blindly, you will get rekt. Not convinced? Look at these shocking lessons from the dot-com bubble👇 1. Yes, the tech was exponential. The number of internet users grew at a compound rate of over 20% a year since 1995. Now reaching half of world population. Since the 1990s there hasn’t a single year where the growth rate was not positive.…
No I’m not exiting blockchain investments. The industry will 20x in the next decade and more. I’m only exiting bitcoin. Before the maxies dunk on me, I’m not saying bitcoin would go to zero. It won’t. It would probably go up, a lot. But that doesn’t change what I’m saying below. If you’re a farmer, you 1) collect this year’s harvest —> 2) use that money to buy seeds, fertilizers, machines —> 3) plant more…