Bitcoin (BTC) is a Sequence of Numbers and Nothing More

Dan Held Shared: Bitcoin critics: “but it’s too volatile”.  Today:  Amazon +14%  Snap +54%  FB -26%.

Community Response:  Bitcoin Critic here. Bitcoin isn’t money. Gold -0.1%.

Gold over the last 10 years = 4% Congratulations. You’ve lost a massive amount of purchasing power by holding a shiny rock. You’d be better off by holding literally anything else.

What are stocks, expected to be volatile? Nobody is trying to use these stocks as a currency like they are with Bitcoin. That is a significant difference even the Bitcoin Cult should recognize.

Correlation between crypto & Nasdaq increased from 0.1 in 2019 to 0.5 in 2022. This results in BTC recently moving 3% a day vs FB & NFLX moving 30% a day.

They’re not usually this volatile. Late-stage inflation things. When Money Dies (see the book), everything trades like a shit coin. Just a little shakeout before the printer HAS to be turned back on Their hands are tied.

2020 changed every economic ecosystem.  This is why Bitcoin is so important for the future.

Bitcoin is a stock or a currency?  It’s an asset.  Goes between Asset and Burden, depending on the day.  In the time it will be less burden. It’s a new asset class that’s early in the game.

Bitcoin is in no way an asset. An asset has an intrinsic value be it tangible or intangible. Bitcoin is a sequence of numbers and nothing more.

When you buy a stock, does it have a strict value or just a sequence of numbers?

The intrinsic value of course.  You are buying the rights to a portion of all future dividends.

Well, that is the same with crypto assets. Some crypto pays you dividends. Some don’t, just like some stocks that don’t pay dividends like AZMN. Better, stock can be issued more at will, while crypto cannot be more than what is programmed. Does that qualify as intrinsic values?

With crypto you don’t own rights to anything, nor does anyone have a fiduciary duty, or anything of the sort. Let’s not pretend that crypto projects exist to do more than pump n’ dump the value of the 15 Trillion tokens they issue. At least the Bitcoin maxis have legs to stand on.

It depends on who defines the “rights”. For stock, the right is defined by securities law, so stock companies must adhere to it. For crypto, the right is either defined by the code, or by some people who are controlling the tokens. To whom you should trust is up to you.

There is something to what you’re saying. Personally, I’m not convinced. But time will tell. I think in 10 years, we will have more clarity.

In crypto, it is hard for something to fail, but yeah 10 years would be a good test for what has more value than others. For me, I am using what has a value at the moment, not just waiting for 10 years. I am not after speculative values.

Well, that’s why I am skeptical. The ‘value’ I see I created is usually just cashing out on the profits of speculation where people won. Seems the Crypto use cases only serve to feed the Crypto ecosystem, but don’t produce anything outside of that. ‘Circle jerk’ kind of.

If it does not have any value for you, don’t invest in it. For me, I have 2 use cases that are beyond the crypto space 1) the ability to send a token to anyone in the world immediately, which has values to help them through the difficulty in life, both materially and spiritually.

The ability to issue my own token in the form of my company stock with all voting rights and dividend playout, borderless and instantly without any geo-restrictions. Imagine a traditional company issue stock options for employees abroad, you don’t have many choices.

Well, these ‘stock options’ are smoke and mirror, since everyone is pretending the tokens have utility.

You can back the tokens with something else or pay-out dividends. I am paying out dividends on a weekly basis. You also need to build the network effect so that the tokens can be traded with liquidity. Of course, non-native tokens will need trust, unlike trust less native tokens.

Who even REMOTELY suggests that any of these three is “money”?

I don’t think anybody pretends they’re not playing casino at this point.

I understand your implication, but I disagree. From my experience, I’d guess about half know they’re gambling but believe that they’re going to be the lesser fool, and the other half believe it is “the future of money.” Given that ratio, the gamblers might still win.

Funny, in my mind crypto was the obvious scam, and I was saying I think anybody buying equities knows they’re gambling.

You will see larger downward vol in Bitcoin when one of these not fully backed stable coins inevitably blows up. Then wait 1.5 years to buy. Try to catch a falling knife now and get your hand cut. Trading cycles 101.

The funny argument, considering QE is basically the same thing with dollars as Tether with USDT. Good luck.