Stock-to-flow model.
"Stock to flow" does not apply to Ponzi scams. I don't know if any of you noobs understand economics at all - and I wasn't there to personally witness the event or personally audit all the bookkeeping - but the great depression involved a liquidity deficit. Some claim it was an engineered depression by the banks, others claim it's not; who knows, that doesn't matter for this discussion. What matters is that if Bitcoin was actually the unit of account of anything (I.E. the world reserve currency and everything is priced in Bitcoin), the halving itself is a liquidity implosion similar to the great depression.
With Bitcoin not being the unit of account of anything it doesn't really matter because it just functions as a meaningless pump and dump scam, but if you actually tried to price everything in the world in Bitcoin it would be laughable. What type of "monetary system" do you know of where every vendor on the planet needs to massively adjust all their prices every four years? None exists because anything with such stupid mechanics always dies because anything operating with such dynamics is a Ponzi scam. The purpose of a monetary unit is to provide price stability, not be unstable by default.
In terms of having an actual functioning economic system, the 'halving' is a monetary crisis, not some sort of benefit. The only people who view it as beneficial are pump and dump scammers hoping it allows them to make money off algorithmically designed, large volatility. If Bitcoin was designed to actually be useful as a unit of account for something instead of a Ponzi scam, the block reward would be static eternally. The government creators of Bitcoin who want it to function as a cashless society slavery system where everything you do is monitored in real-time knew it would be impossible to try and get anyone to use Bitcoin with an infinite, static block reward over metals, so they designed it as a get rich quick scheme, Ponzi scam to later be adjusted or replaced when it eventually fails due to having no use case beyond a pump and dump scam.
Thank you very much for your realr0ach point of view,
I respect his way of thinking about these scenarios, historically gold is always the best way out of the crisis, Bitcoin is undoubted protagonist today, in my case, I give much importance to both the investment and the refuge of the value that It represents, although many economists do not recommend it because it is volatile.
For those of us who can handle the volatility of BTC (and possible perceived risks of an investment/speculation we do not fully understand), BTC is a great piece of diversification.
I hodl enough BTC so that if it moons in price, I benefit nicely. But, I am not the kind of guy who likes putting too many single investment eggs into my basket. Especially now that I am aging (older than most of you).
Do recall that anyone hodling ANY BTC already is way ahead of the game, as so few (6% of Americans?, though that seems way high to me) hodl any BTC. Thus, should it moon (an excellent probability, IMO, of it doing so), only we 6% will be winners. I do not need to be a #YugeWinner to be content with entering this arena (nor a #YugeLoser should BTC collapse). My hodlings are enough to bring me a Big Smile should we exceed BTC's ATH. Bring it.
As our European friend "el_duderino" has long written: "This is fine" and "This is HODL".
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I still do not understand the antipathy of BTC hodlers to gold. (Of course, you can see the opposite too, look zerohedge FUD-ers)
Gold and BTC are, in essence, both assets outside the $IMFS (our financial system). But they are somewhat different in their price movements as well as their various other properties. They are different "vectors" if you will. That's why I like them both!
Precious metals and BTC are natural and complementary allies.Edited for clarityOf course, each person is free to make his/her own choice regarding how much allocation to put into gold, and maybe some of the antipathy of BTC HODLers towards gold comes partly from gold bugs denigrating BTC and even putting out a lot of bullshit arguments, including the repeated WEAK-ASS intrinsic value and supposed utility (jewelry, industrial use, etc) arguments
(which really are not much for giving greater value to gold, but might instead be arguments that work against the current/future value of gold), and also BTC has shown superior performance as compared to gold in recent years, and likely to continue to be superior to gold into the near, medium and long term future under the vast array of most likely scenarios because BTC has a variety of properties that Gold does not have (or at least bitcoin does a few things better including portability, divisibility, verifiability, less need for third parties, difficulties to manipulate supply
(referring to paper gold), scarcity and a few other less important better aspects)....
So, yeah, maybe BTC HODLers have become a bit cocky, and surely I don't want to be confrontational or insulting to the decisions of anyone who chooses to HOLD gold, so I am talking practically and attempting to be realistic rather than either talking my book or trying to denigrate anyone for their decisions to hold or allocate towards gold (that is their choice, even if it seems inferior as I just mentioned), but I doubt that such cockiness is completely unwarranted in BTC's likely present and future role as gold 2.0. Yeah, bitcoin was modeled on gold in a lot of ways, so it even seemed that Satoshi had a lot of respect for the historical sound money contributions attempts of gold, while recognizing that gold had failed in a variety of ways, especially in recent times and going off gold standards and a lot of the out of control aspects of fiat money.
Gold bugs do not like that bitcoin is likely replacing it, and yeah gold will likely still serve some roles in society, but bitcoin is coming in and likely to supplant a lot of the value of gold and the historical use cases of gold in the modern world.
Not trying to be denigrating at all, but surely seems to be that the direction of asset classes are evolving both bitcoin and PMs such as gold. Of course, individually, you can chose your level of allocation and believe that gold might continue to decently hold some value.. it might and it might not.. that is just the way things are going and not hostility, and I really should not be repeating points that
I already made in my post on the topic from yesterday.. so I will leave it there, for now.