Who is buying this trash?

[ScroogeMcDuck]

The only good use of a blockchain is a decentralized cryptoasset like bitcoin. (and the only cryptoasset worth a damn is bitcoin) Without decentralization, there's no point in using a blockchain instead of a much more efficient centralized database. All these supposed applications of blockchain to non-decentralized businesses are just clever hustles for parting dumb VCs from their money.

Even if your bitcoin addresses are pseudonymous, and you take precautions to avoid those pseudonyms being linked to your real identity, it's still more trackable than greenbacks.

Bitcoin is volatile because it's still pretty small and only a few companies are doing treasury operations with it. Volatility decreases as the size of the network increases and reduces the impact of any one event.

Sauce for the estimates of illegal activity: https://www.thecipherbrief.com/report-an-analysis-of-bitcoins-use-in-illicit-finance

 

[CopperOverGold]

As for the original question who? Been long bonds about a week.

 

[tsfx]

Even if your bitcoin addresses are pseudonymous, and you take precautions to avoid those pseudonyms being linked to your real identity, it's still more trackable than greenbacks.

Doesn't that make it less valuable ? Atm, i can only see value in private crypto by moving illicit capital from one place to another and to avoid paying taxes. And i can see a strong need for decentralized coins traded on dark networks once CB's go all digital and IDless cash no longer exists.

Coins are just as fiat as regular currency, but they are paying a negative rate.
How are they more valuable ?

Regular commodities also pay a negative rate but they have industrial uses and need in the economy, so it makes sense to mine them.

Volatility decreases as the size of the network increases and reduces the impact of any one event.

Yep, i can agree with that. That's why the currency market has the lowest volatility. The lower the vola the more cost effective your risk management becomes.

Sauce for the estimates of illegal activity: https://www.thecipherbrief.com/report-an-analysis-of-bitcoins-use-in-illicit-finance

I think transactional volume is just part of the story. You need to add quite a deal of trade volume as well. If i have a lot of cash sitting on my bank account then it gets exposed to bank regulation/dominance and freezing of assets by authorities. If i traded that cash for crypto, i don't have that problem. But this action has an "illicit" motivation. Those who think and act like that always have one or more reasons to do so, besides simply stating that "the government is corrupt and is after my money".

And then there is the most important problem. Regular currency has an interest rate (even if it's zero). Once there's a confidence collapse in the bond market, what will happen to interest rates ? They'll explode through the roof. Do you know the size of the corporate bond market ? Companies exposed to massive debt (which most are) go bankrupt, unemployment rises signifcantly and people will only buy stuff they NEED. If u wanna know what that does to the GDP, look at last years Covid. And if you are jobless and becoming homeless, what r u gonna do with ur crypto ? You need to sell everything to cover your expenses. What happens to prices when you NEED to sell because you can't eat it, nor live in it etc ? You'll always need something of real value in uncertain times. Your crypto isn't a hedge in that scenario UNLESS it's backed by real value (not gold).

Can i prove my arguments ? Especially, in a speculative environment that we live currently ? Absolutely not. What's more, none of the guys making $$ in, what i refer to as hot potato game, aren't gonna believe me anyway.

I love Jamie Dimon's statement a few years back: “I’m not saying ’go short bitcoin and sell $100,000 of bitcoin before it goes down,” said Dimon. “This is not advice of what to do. My daughter bought bitcoin, it went up and now she thinks she’s a genius."

 

[tsfx]

As for the original question who? Been long bonds about a week.

lol yeah, makes sense, even if it falls further. The more it falls the more anxious the world gets. If the CB's are proven wrong then their whole existance becomes questionable among all other things. Losing money in exchange to see the world burn is, in fact, the right strategy.