Bitcoin in a hyperbolic bubble

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tecate said:
To my knowledge, bitcoin is the first and only time that wall street has been front run on a new financial asset. It depends on what your thesis is on bitcoin and whether there's something tangible there or not. Mine remains that over the longer term, it has much more to accomplish. That doesn't mean that there won't be volatility in both directions along the way.
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I think the internet has changed the world and will continue to change the world.

We are only in the early stages of this revolution, which will be as significant as the invention of the printing press. It will change everything. Just like the printing press, govts, vested interests and authorities will try to control it, but it will be impossible.

The Gamestop fiasco is an example of collectivism working against capital. Marxism in action.
 
Allpartied said:
I think the internet has changed the world and will continue to change the world.

We are only in the early stages of this revolution, which will be as significant as the invention of the printing press. It will change everything. Just like the printing press, govts, vested interests and authorities will try to control it, but it will be impossible.
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I agree.
Allpartied said:
The Gamestop fiasco is an example of collectivism working against capital. Marxism in action.
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I'm not sure if that's marxism that's implicated. That rabble are a patchwork of all sorts - and I'd imagine there's many of them that would consider themselves anything but marxists. Some of it may be principled, some of it moronic - but its their $ and they're as much entitled as the hedge funds to take a position (without other stakeholders rigging the game).
 
tecate said:
I agree.
I'm not sure if that's marxism that's implicated. That rabble are a patchwork of all sorts - and I'd imagine there's many of them that would consider themselves anything but marxists. Some of it may be principled, some of it moronic - but its their $ and they're as much entitled as the hedge funds to take a position (without other stakeholders rigging the game).
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Of course, they don't realise they are acting as Marxists. They probably view themselves as great innovators, one step ahead of the machine.

But, if the lesson, they learn is that collective action is much more beneficial than individuals competing to cut each other's throats, then that may be very positive. Use the platforms of the internet, to organise on the shop floor, in the workplace, in the voting booth and on the streets.

In the 1930's depression years, it wasn't the rebel bank robbers, the Bonnie and Clydes , who shook up the system. It was the labour unions, the radical organisers in the cities who stirred the masses and challenged the vested interests of capital.
 
From Tesla recent 10k form on sec.gov website (AAM won't allow me include the actual link):

In January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity. As part of the policy, which was duly approved by the Audit Committee of our Board of Directors, we may invest a portion of such cash in certain alternative reserve assets including digital assets, gold bullion, gold exchange-traded funds and other assets as specified in the future. Thereafter, we invested an aggregate $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term. Moreover, we expect to begin accepting bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis, which we may or may not liquidate upon receipt.
 
I wonder what the SEC's view is on corporates making speculative investments. In my experience car makers and corporates don't typically also have financial markets investment arm making speculative investments.

I assume the acceptance of BTC will follow that of Paypal and be a taxable event for individuals.

I did see Elon has been pumping 'Dogecoin' a meme based cryptocurrency lately on twitter.
 
tecate said:
Tesla ticking the store of value and means of exchange boxes re. bitcoin.
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What page should I read?
This could be a game changer.
Not that it will change mine or Roubini's mind.
But it is in a different league from Microstrategy(who?).
Elon Musk cannot be ignored. Everyone on Wall Street and even in the wider academic community has to take a firm position now.
I honestly can't see a strong consensus behind his move but rather a robust mainstream rejection which could herald the denouement of this crazy business.
 
The notes wouldn't exactly fill me with confidence. But I am not underplaying the significance of such a high profile endorsement albeit by someone whose rockets can't get off the ground.
The but about adoption as a medium of exchange is of course a nonsense. They will accept bitcoin as payment which they say they may "immediately liquidate".
 
Rockets cant get off the ground? I know Musk triggers certain people like a hairy version of Greta Thunberg but thats some seriously warped analysis of SpaceXs success, how do even come to that conclusion with all the available evidence?
 
So we now have a company in the midst of a share price bubble 'investing' in an 'asset' that is in the midst of a price bubble. What could possibly go wrong..............
 
Sunny said:
So we now have a company in the midst of a share price bubble 'investing' in an 'asset' that is in the midst of a price bubble. What could possibly go wrong..............
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Perhaps TSLA is an extreme example but many would point you towards the fact that the conventional markets are nothing more than a casino with no earthly connection with the real economy. Tesla isn't alone - the valuations of most publicly traded companies have been driven by massive asset inflation. In 2020, many conventional stocks and commodities were far more volatile than bitcoin. It's symptomatic of something far more fundamental being out of whack.
As regards the bitcoin 'bubble' suggestion, I guess you are on board with the notion of a perpetual inflating and deflating bubble. 1 btc = 1 btc - just like it was 12 years ago and every year in between. It's the nature of sovereign money and the way it has been managed over the past 50 years that's the key to all this. Or who knows...maybe we can continue to print our way into the distant future...into oblivion.
 
I listened to an Irish financial advisor tonight suggesting it is probably time for people to have a small amount of their portfolio in bitcoin.
It would be interesting to hear where the askmoney posters think bitcoin is heading, a slightly different market to the reddit crowd I think!

Is it good financial advice to invest and what percentage of a portfolio should be dedicated to it in your opinion?

RTE news had a segment on it today and now everyone and their mother knows about it so this might be a bit concerning. As Buffet says be 'greedy when people are fearful and fearful when people are greedy'
 
Younginvestor93 said:
I listened to an Irish financial advisor tonight suggesting it is probably time for people to have a small amount of their portfolio in bitcoin.
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Which Irish financial advisor was that?

Younginvestor93 said:
It would be interesting to hear where the askmoney posters think bitcoin is heading, a slightly different market to the reddit crowd I think!
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There are a few price prediction threads within this section. The last one I *think was done when btc was at around 20k. All I will say is that btc is the most transparently finite financial asset that has ever existed.
As regards AAM setting itself apart from Reddit, I don't think there's going to be any anti status quo movement emerging here.

Younginvestor93 said:
.As Buffet says be 'greedy when people are fearful and fearful when people are greedy'
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In reality hard to implement but a good approach to take in this instance. Nobody wanted it when it was at 4k last March or 3k in Nov. 2018.
 
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