jalanlong wrote: ↑Sat Jun 18, 2022 10:48 pm
Kbg wrote: ↑Mon May 16, 2022 4:18 pm
jalanlong wrote: ↑Mon May 16, 2022 2:57 pm
dualstow wrote: ↑Thu May 12, 2022 9:32 pm
Bitcoin is just too young and Harry was wise. Even though he would probably have been fascinated by it, I can’t imagine that he would have recommended crypto to investors depending on his sage advice, let alone telling people to put in in a portfolio of “money you can’t afford to lose.”
Bitcoin supporters (esp those in places like Canada) would say that Bitcoin can be for "money you can't afford to lose" when the government decides to start freezing or seizing financial assets without any due process because you have the wrong views on certain topics.
As opposed to the safety provided by private vendors who lose just a couple hundred mil here and there to the occasional hack.
Well like gold, if you dont hold it in a private vault then you probably dont own it.
I've been feeling worse about my paper gold lately. I really question the value of it at all. I fear that I'm largely deceiving myself by thinking my gold allocation is where it is.
If we want the risk/returns of paper assets, then stocks fit the bill. If we want SHTF insurance, an off-the-books-asset, hard money, an asset that is no one else's liability, then that's physical gold. A combination of the two is an abomination and is not needed in modern times. Paper gold is like stocks w/out the upside.
Conspiracy theory: does the existence of paper gold suppress the price of gold? It seems plausible to me. I'm sure there is some degree of fractional reserve going on somewhere in the world, and that reduces the demand for the real thing.
Back to Bitcoin: since it is a digital-native asset, you are never in a position where you have to trust that someone has the Bitcoin they say they do. Reserves can be cryptographically audited:
https://www.kraken.com/en-us/proof-of-reserves
This would be like mathematically proving that all the gold bars are there in the vault, and they are all 100% gold. This is prohibitively expensive in the gold case.