Gyroscopic Investing

How Baseball Cards Explain What Bitcoin Really Is


https://jabberwocking.com/how-baseball- ... really-is/

I disagree that money has to represent debt. It’s true for fiat money, but there has been money other than fiat. Silver and gold for instance.

I like the viewpoint that Bitcoin isn’t money because it has too much friction in transactions.

Not sure I agree with the blog post author's debt definition of money.

Maybe it's a game of semantics here, but I think what people call fiat money, government issued tender, is the only money.
Gold, silver, Bitcoin are all speculative assets, perhaps stores of value, but not money. To my way of thinking money is a medium of exchange as much as and maybe more than a store of value. Even Bitcoin's value at any time is a function of how it is denominated in US dollars, Euros or some other "fiat" currency. At least at the moment.
Have you ever heard anyone quote Bitcoin in Gold terms? Sure you could do a calculation to establish the exchange rate but the dollar or another currency is still necessary as an intermediate denominator.

So when Bitcoin goes up it is doing so in relation to USD. So is Bitcoin in this example appreciating, or is the USD depreciating? Or a combination?

If one day Bitcoin becomes the denominator and can function as a value in an exchange equation independent of a currency, then yes, at that point it is money. Until then it is a speculative asset, store of value, possibly a commodity, or all of the above.

Don't get me wrong, I own some Bitcoin and Ethereum, but I'm doing in the context of pure speculative VP adventure gambling. If you find these discussion forums where people talk about Bitcoin, you can't help but worry about the apparent cultish fanatacism that is going on with them. It's very different than professional investing behavior.

I didn't finish the whole article but collectibles does sound like a good description for Bitcoin, precious metals and baseball cards.

I would prefer my money to be as stable as possible for daily needs. The dollar does this pretty darn well in that sense.

I just realized with crypto being considered collectibles by IRS.

That means maximum tax rate of 28% just like any other artwork.


https://www.arcadiaappraisals.com/blog/ ... activities

Found interesting article on how artwork is taxed

https://www.arcadiaappraisals.com/blog/ ... activities