Bitcoin is still early

[xraygoggles]

Agree to disagree. The bond market/US-Treasuries will be disrupted.

Flesh this out for me: how would that work? What would be the rationale for this?

[CordMcNally]

not the cardano standard?

That’s just my ‘let’s put some money here and see what happens’ play.

[chucki]

Flesh this out for me: how would that work? What would be the rationale for this?

Instead of ranting or pretending to know more than I do, I would suggest you google "Greg Foss bitcoin" and read his work/listen to the podcasts that he has been a guest on. Foss is a lifelong professional bond trader in Canada and it will flesh this out to your heart's content -- whether you agree or disagree is up to you, of course. This may seem like a cop out, but me paraphrasing (possibly incorrectly) would not do the topic justice.

[jacoavlu]

Flesh this out for me: how would that work? What would be the rationale for this?

quite simply, money that is in or may have gone to bonds, goes to bitcoin

there are many institutions with very long dated liabilities. think insurance companies. pension funds. how on earth do these entities invest their current dollars when the risk free rate is nominally near zero and negative in real terms ?

[Zaphod]

my friend i think you’re closer to losing our bet than i am. would you like to raise the stakes?

i see it as very different than holding a single stock.

You can see it however you see fit, doesnt make it real.

[jacoavlu]

You can see it however you see fit, doesnt make it real.

please explain

[nycEMMD]

Flesh this out for me: how would that work? What would be the rationale for this?

Bonds and BTC both offer asymmetrical risk/reward profiles, but in different directions. As BTC becomes a more accepted store of value, large funds are much more willing to buy BTC instead of bonds in order to protect their capital. Look up large university endowment funds like Yale (the largest), Harvard, etc. They have stopped buying bonds over a year ago and have been accumulating BTC. Fund managers realize that yields are at all time lows and have nowhere else to go. The potential upside of getting a few % points of return a year is contrasted with the risk of losing large sums of money due to continue sell-off in the bond market and inflation.

[xraygoggles]

Instead of ranting or pretending to know more than I do, I would suggest you google "Greg Foss bitcoin" and read his work/listen to the podcasts that he has been a guest on. Foss is a lifelong professional bond trader in Canada and it will flesh this out to your heart's content -- whether you agree or disagree is up to you, of course. This may seem like a cop out, but me paraphrasing (possibly incorrectly) would not do the topic justice.

I've heard many theories online, but none of them make any sense to me.

[xraygoggles]

quite simply, money that is in or may have gone to bonds, goes to bitcoin

there are many institutions with very long dated liabilities. think insurance companies. pension funds. how on earth do these entities invest their current dollars when the risk free rate is nominally near zero and negative in real terms ?

Well yes, I agree institutional adoption will continue into BTC, but as a small hedge in their overall portfolio. I don't think it will subsume the bond market however - that's ridiculous. Do you even know how much larger the bond market is compared to the equity markets?

[jacoavlu]

Well yes, I agree institutional adoption will continue into BTC, but as a small hedge in their overall portfolio. I don't think it will subsume the bond market however - that's ridiculous.

i agree

[Bellescamp]

How would bitcoin replace money? From a broad view, not contractual exchanges.
doesn’t money need to elastic, with governmental oversight so the supply can expand and contract as needed to respond to market forces?
and isn’t bitcoin not elastic? Fixed amount once it’s all mined. And decentralized so cannot respond to economic forces?

[Lordosis]

This "read more" and "educate yourself" talk is tiresome.

If you cannot explain it to your grandmother than you do not understand it yourself.

I would hope most members of this forum would be easier to explain it to than most grandma's.

[jacoavlu]

How would bitcoin replace money? From a broad view, not contractual exchanges.
doesn’t money need to elastic, with governmental oversight so the supply can expand and contract as needed to respond to market forces?
and isn’t bitcoin not elastic? Fixed amount once it’s all mined. And decentralized so cannot respond to economic forces?

for centuries, money didn’t have to be “elastic” and didn’t need government intervention to “respond to market forces”. some would say those are bugs not features

[jacoavlu]

This "read more" and "educate yourself" talk is tiresome.

If you cannot explain it to your grandmother than you do not understand it yourself.

I would hope most members of this forum would be easier to explain it to than most grandma's.

fundamentally money needs to be divisible, durable, recognizable, portable, and scarce. it’s easy to understand why

gold best satisfied these properties so it became the de facto monetary standard

paper currency notes backed by centrally held gold began as a solution to solve some of golds weaknesses around those properties. it’s heavy. hard to spend small amounts. expensive to verify

the gold standard kept governments honest

since that was discarded, governments no longer have to act honestly. fiat currency is not scarce. the government is able to create new money for no cost. this is a theft of citizens time because it devalues our money

[blippi]

gus chiggins? that you?