Running_Man
Thinks s/he gets paid by the post
- Joined
- Sep 25, 2006
- Messages
- 2,844
The secret to bitcoin and major cryptocurrencies is decentralized finance, otherwise known as Defi. Applications are being written around this and outlawing crypto is not going to be very easy as the valuations gets into the trillions as major corporations are playing in the space and the larger this becomes with more corporations the less likely any outlawing of this will be.
Raoul Pal's insight in October 2020, and he was a fan of crypto long before, in conversations with finance heads he saw so many major players were going to get involved in this space and the future these people anticipated, and you don't just create more bitcoin to meet the demand, the price rises to meet the demand. He utilized the stock to flow model and anticipated a price of $400,000 to $1,000,000 based on his model of demand, the amount being mined and he came up with that price, advertised it for free all over the internet and put 75% of all of his wealth into crypto. Since then prices have more than tripled. I especially enjoyed his comment, "Bitcoin is outperforming everything else on earth and makes everything else pointless, I simply don't care about value versus growth, oh look I can make 10 percent in this asset class while Bitcoin is up 100 YTD.. at this phase in the crypto cycle nothing else matters. There is a wall of money coming in"
I don't think dead people really can provide the critical thinking necessary to try and understand this space any more than 15th Century scholars understood the importance of Christopher Columbus's journeys.
I reccomend this video highly if one would like to try and understand what is happening I think Rauol explains it well.
https://www.realvision.com/shows/daily-briefing/videos/yield-curve-control-non-fungible-tokens-and-a-wobbling-equity-market?source_collection=89dc905231eb407cb2f77327ba8b714d&autoplay=true
Since this post, the second largest Crypto Asset Ethereum is up 20% Dogecoin is up 100% in a week, it is up 75X since November and Elon Musk is it's biggest fan. Interesting times. I do see where 10 year treasuries are yielding 1.6% so there's that.