A few Bitcoin fans have dredged up a post I wrote four years ago today that celebrated its plummet over the preceding year. Sure enough, it turned out to be at its lowest point in a while and promptly took an upward turn. Notch a victory for the crypto groupies.
Since then I've written multiple posts suggesting that Bitcoin is basically a collectible, not a substitute for money, and we should all expect it to be as volatile as any other collectible that randomly finds itself in and out of favor. For example, since we're celebrating anniversaries, here is Bitcoin over the past two years:
If you were investing your money on December 9, 2020, you'd have been better off putting it in an S&P 500 index fund than putting it into Bitcoin.
Of course, this is all a game of cherry picking dates. Choose a different date and you can get a very different result. Nevertheless, if I were investing for the next ten or twenty years, I'd feel a whole lot more comfortable about the S&P keeping its value than I would about Bitcoin.
Or as Nouriel Roubini calls it, Shitcoin.
Online work from home that is simple and uncomplicated. Start earning $4k every week by performing this easy task from home. Actually, this easy task last week generated $4824 for me. It’s a straightforward job that anyone can do, and the pay is far higher than that of a typical office job. Everyone (nhf-06) can now get more money online by just clicking this link and following the onscreen instructions to get going.
Click Here For More Information————->>> https://careerboost01.blogspot.com/
A month-back my cousin's step-mum basically earnt $2,900 just sitting there twelve hours a week in their apartment and they're best friend's mother-in-law`s neighbour has been doing this for nine months and easily made more than $12,000 part-time from their laptop.
Apply the instructions on this site... https://profitguru9.blogspot.com/
If you invest in an S&P tracking fund, you still have exposure to cryptocurrencies. Tesla has a stupid amount of its capital invested in crypto and Nvidia's GPUs are the primary means of crypto mining.
FWIW Tesla sold off around 75% of its bitcoin in July. Any amount is a stupid amount but it's probably only 1% of their assets. Although if you only took into account liquid assets it would be a stupid amount higher percentage.
Why not try running a curve through the minimums of bitcoin after crashing for each cycle for the last twelve years and comparing that to the S&P? You can't tell me it's not worth investing 5% of your portfolio in bitcoin.
As a collectible it seems to enduring.
“ value of beanie babies” as a web search …
Also Tulip bulbs, pet rocks and cabbage patch dolls. And any Franklin Mint "collectable".
BTC has an intrinsic value of close to $0. It isn't exactly $0.00 because it does have some value in breaking the law. Many corrupt countries could benefit from BTC but they probably can't sustain a price above $100.
There is nothing terribly wrong with putting 5% of your net worth into a Ponzi Scheme. Just try to get out before it crashes.
The big difference between investing in the S&P 500 and investing in bitcoin is that the first gets you a claim on future earnings (in dollars) of the underlying companies. The later gets you a claim on an encrypted transaction log. There is always the considerable risk with crypto currencies that all of a sudden everybody realizes that lacking any sort of utility they aren't worth anything. You might at least get pleasure at looking a a tulip , beanie baby, or work of art.
And Texas has bitcoin miners to support its electrical grid...
https://www.wired.com/story/bitcoin-texas-power-grid/
no, really.....
Some interesting quotes:
"One mining company, Riot, said it earned $9.5 million in energy credits during the heat wave for switching off operations, more revenue than it earned from mining bitcoin in the same period (roughly $6.9 million)."
"...ERCOT explained it will not allow new mining facilities to power up if there is a risk of destabilizing the grid. But the operator also said it’s not in the business of predicting the impact of mining on the price of energy for consumers."
GOOD
BAD
nice
nasty
Online work from home that is simple and uncomplicated. Start earning $4k every week by performing this easy task from home. Actually, this easy task last week generated $4824 for me. It’s a straightforward job that anyone can do, and the pay is far higher than that of a typical office job. Everyone (nhf-06) can now get more money online by just clicking this link and following the onscreen instructions to get going.
Click Here For More Information————————->>>
Oh my gawd. This crotch rash in your family is breaking out. You people need to stop sleeping with each other. Why, oh why, do you not learn? Working from home surrounded by incestuous desires, you'll never earn enough to keep up with your treatment!
Does your S&P chart include dividends?
Can you calculate a risk adjusted return?
The anti-spam stuff doesn't work.
Need something better.
If you bought in October 2021, you are basically SOL. If you purchased years earlier and you stuff still has value, if you kept your crypto at FTX, you are again SOL.
For better or worse, when you buy into the S&P 500, you are acquiring the right to the long term cash flow of those 500 companies. While the intrinsic value of Bitcoin is based on what? Folks who year after year, decade after decade, in good times and bad, keep investing their 401K money in broad based index funds seem to do OK.
Yep. On average, a broad-based index fund will out-perform managed funds, too.
" While the intrinsic value of Bitcoin is based on what? "
It will always be used for laundering money by criminals, so there will always be some influx into it from criminals that are ready to pay for it.
For me that is a reason not to use Bitcoin, and I think it is a reason why governments should either regulate it or ban it.
My understanding is that an important reason why Bitcoin has lost so much value is that it being abandoned as a tool for criminals because the software now exists to identify the holders on blockchain.
More here:
https://www.science.org/content/article/why-criminals-cant-hide-behind-bitcoin
Okay, we're down to 3 spams out of 23 posts. Now out of 24!! (sigh) Are these all the bots that Elon supposedly banished?