It's kinda like gold. If the government were to ban gold, you could still hide your gold, but if you can't trade it, that will severely affect its value. What good is a store of value that cannot be used?
Fidelity Digital Assets™: ADDRESSING PERSISTING BITCOIN CRITICISMS
- Thread starter johnarb
- Start date
It's kinda like gold. If the government were to ban gold, you could still hide your gold, but if you can't trade it, that will severely affect its value. What good is a store of value that cannot be used?
[EDIT: The OP is about bitcoin, and if you want to retract and not include bitcoin, then I won't argue further. We got ET180 still hellbent on your item 1 as relating to bitcoin]
You still claim item 1 even with the following:
1. Paul Tudor Jones, Stanley Druckenkniller and Bill Miller have all publicly stated and advocated investing in bitcoin
2. Microstrategy, Square and Stone Ridge are invested in Bitcoin both as a cash-reserve replacement and store of value
3. Fidelity (refer to OP) has an awesome write up contradicting your item #1
4. Fidelity and JP Morgan are openly recommending to their valued UHNW client to invest in bitcoin
5. Retail customers demand - millennials, gen X and even boomers, are able to invest easily into bitcoin, actually know someone who bought GBTC. PayPal and Square are a no-brainer for anyone who wants to invest in bitcoin
Any single 1 of these items should be enough to make you cringe when you want to still argue for your item #1, but all of them combined, well....
You've been around since bitcoin was below $50 as I see your first post on the cryptocurrencies forum was in June/2011 (I wish I got in that early) and for sure your item #1 was true back then, when bitcoin's main use-case was payment method forthe darknet markets but at some point it was no longer true.
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You know, when I posted the beautiful write up from Fidelity Digital Assets, I thought, booyah! game over, lay those criticisms to bed, but here we are, still.
Am I the only one who thinks Fidelity is a well respected outfit with Trillions of $ AUM?
If they put out a negative article on Bitcoin, you would be trashing their reputation.
That's based on fact. Most stores will not directly accept bitcoin. You would have to go through a 3rd party that would convert the Bitcoin to dollars as most stores are not interested in holding a highly speculative and volatile product. So Bitcoin is not used widely as a means of exchange. Its volatility does not make it a reliable store of value. A reliable store of value would not lose 60-70% of its value in one month last March. There are much better alternatives for preserving value such as PMs. But I admit that there is one potential use case of Bitcoin as a store of value...when its a store of value of last resort or to escape capital controls implemented by one's country of residence (China, 2016). If you are in Venezuela and your currency is crashing, those who converted whatever they had into Bitcoin were well served by the product..so far. But keep in mind, if too many people do this, governments will seek to block it just as the US did with gold back in the 30s (although back then it was a little different as the US was still on a gold standard anyway). If the dollar continues to weaken as I expect it to do, then Bitcoin has a tailwind. But right now, most people are buying it because they think it will go up just as they did in 2018 -- speculative momentum.
You cannot assume I would be bashing Fidelity. My IRA was with Fidelity and my experience with them was always great and when I read up and spoke with others, they also gave the same positive feedback and the stuff I see in the news, they seem to be of a high class organization.
You're making argument against bitcoin as a medium of exchange (payment method/currency) and then you think you can transition to SoV. Look at my list. You think PTJ is interested in buying coffee with bitcoin, or Microstrategy is worried about their next office supplies requisition using bitcoin, or Fidelity and JPM telling UHNW clients to buy bitcoin for purchase of a car in the future with bitcoin?
Bitcoin as SoV, gold replacement, digital investment asset, and no, it's not for you, so don't worry about it as you'll never invest in bitcoin.
[credit to user They below]
In order for something to have value long-term, it needs to fulfill a purpose even if the purpose is highly subjective. I agree with you that if Bitcoin was a superior medium of exchange, it would already be used commonly for that purpose today. As a store of value, it failed back in March when it dropped 60-70% in one month (Feb 13- March 13). A true store of value won't do that. It's a highly speculative asset with a potential use case as a store of value of last resort in the future.
Indeed. You won't be able to do this with Bitcoin in the 19th century, after you have time-traveled back there from the 24th century to stop a human plague inflicted by aliens that is masquerading as a virus...
That I refuted point by point?
It doesn't matter what I claim, as long as you can not refute it, it still stands. Simply put:
Name a better practical usage then the blackmarket/criminality for Cryptos. And mind you secret capital movement/hiding is still criminal by definition (since it is against the law.)
Furthermore:
All those money managers are not bigger authorities on cryptos than you or me. They have been waiting if the government is doing something against it or ruling on it. Since right now the government seems not bothered with it, they deemed cryptos as safe to be invested in. But putting their 1% or way less in cryptos is not a huge endorsement. Not a huge deal.
Tell me when they are 20-30% invested in cryptos.
Logically still nobody can't explain why one should choose Bitcoin over any of the other cryptos. Except because people want it the most and the person is already invested in it...
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At least:
Do you think Satoshi is impressed the way cryptos turned out? A beenie baby investment device?
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