Quote:
Originally Posted by Gooner
Fair point, and I’m not saying it is being used that way. But if law enforcement, particularly internationally, has trouble with currencies they control, I can see why they are nervous about controlling an unregulated market. The volatility of the non name brand crypto monies is easily exploited alone.
It’s still very new technology and maybe it does make sense in the long run. At this point you’re playing against the casino, and they don’t lose often and win in the long run.
i look forward to learning more as it evolves, I will look into some books mentioned. I just haven’t seen enough to value it different than other commodities.
That's a fair take based on the SME PPOS you laid out.
I'd merely add that govs aren't concerned with it because its unregulated or that its a currency they don't control etc. If that were the case they'd be far more worried about all foreign currencies, as they don't control or even regulate those anyway, at least not directly. Their real concern comes from its decentralization, limited supply and its other monetary-like properties that one day very well could present a global off-ramp to their precious brute force backed petro-dollar and wealth transference tool from the middle class and working poor to themselves. Same for the Chinese government and their debt-trap-diplomacy.
Another thing that often gets overlooked is the "currency" part of the nomenclature "cryptocurrency". Its easy to assume its value is built on a foundation of small retail transactions. While it can be (and is being) used for that, that is incidental to its primary use case. Its far, far more like "digital gold" than it will ever be "digital cash". The number of people who "buy coffee" with it (popular euphemism in the space) will grow its network effect (Metcalf's Law etc) but that was never its main reason for existing. Peer to peer as a general use case? Sure. But for every retail transaction? Not necessary at all. Its really just a place to link some of one's "monetary energy" to a fixed supply of pristine digital cyberspace.
What's really funny is seeing anyone at the retail level knocking gold or BTC as stupid, outdated or conspiratorial when billionaires, banks, major financial institutions and even some sovereigns are involved in both to one degree or another. Zooming in shows significant volatility. That is very fair to point out. But zooming out shows we're pretty likely IMO on the beginning of the upturn of a logarithmic S-Curve adoption/network profile.
Would I go all in right now? LOL no way. But I'm not all in on anything right now. Including gold, cash, RE, equities or even blue chips.