3 ms·

With every passing year, more and more financial products and services are being created around Bitcoin: futures, ETFs, swaps, and so on. These products built

by cs702 9y ago

With every passing year, more and more financial products and services are being created around Bitcoin: futures, ETFs, swaps, and so on. These products built on each other: the ability to hedge with futures will enable the creation of additional Bitcoin products and services, entangled with each other in complicated financial networks. Regardless of what you think about it, Bitcoin is slowly but surely becoming a PERMANENT component of the world's financial infrastructure. It's not difficult to imagine a future in which having some kind of Bitcoin exposure in a portfolio becomes conventional wisdom.

debt 9y ago
That seems dangerous akin to ‘08. Crypto in general isn’t being used for much relative to its current hypothetical value. It’s being propped up by a few huge investors. Once those investors have tripled their investment and grown bored speculating, they’ll move on, and there’ll be a run on crypto driving its value through the floor. So any exposure through retirement accounts or other investment products seems really dangerous. But idk
- pilsetnieks 9y ago
  > Once those investors have tripled their investment and grown bored speculating Can you point out to any example in history where an institutional investor has gotten out of investing because they have grown bored, and the profits they have are enough for them?
  - debt 9y ago
    no but I imagine large funds change investments many times over their lifetime particularly in its riskier allocations. funds are usually made up of larger contributors so while idk of an investor that’s grown bored there are plenty of examples of funds offloading investments for other financial products
chairmanmow 9y ago
Greater fool theory in action. Let's not take a moment to step back and think about this, because hey it's going up! If I'm positive it's a pyramid scam, why should I put my money into it?
- JoeAltmaier 9y ago
  Because you can get out soon, before the crash?
  - chairmanmow 9y ago
    Not a bad reply. Sure I can pump some $ into it in the short but who's to say that capital injection wasn't the straw that made the black market assassin cash out and convert it into something has proven value, gold, etc. Likely what's happened/happening is money is being sucked out of our economy into a shadier one. Silly American buys some bitcoin with their credit card a Russian who spun up a miner buys some gold with their credit card debt. Silly people see bitcoin goes up, think equity's been created there. It's debt.
  - rhino369 9y ago
    That is classic great fool theory thinking. If it crashes, you might not be able to get it out in time to make a profit. Remember, you'll need some idiot to buy your shares if you want to cash out.
aeriklawson 9y ago
I would be careful saying Bitcoin in particular is being cemented. There's nothing stopping its downfall from an "improved" cryptocurrency or other issues.

by cs702 9y ago

debt 9y ago

That seems dangerous akin to ‘08. Crypto in general isn’t being used for much relative to its current hypothetical value. It’s being propped up by a few huge investors. Once those investors have tripled their investment and grown bored speculating, they’ll move on, and there’ll be a run on crypto driving its value through the floor. So any exposure through retirement accounts or other investment products seems really dangerous. But idk

pilsetnieks 9y ago
> Once those investors have tripled their investment and grown bored speculating Can you point out to any example in history where an institutional investor has gotten out of investing because they have grown bored, and the profits they have are enough for them?
- debt 9y ago
  no but I imagine large funds change investments many times over their lifetime particularly in its riskier allocations. funds are usually made up of larger contributors so while idk of an investor that’s grown bored there are plenty of examples of funds offloading investments for other financial products

chairmanmow 9y ago

Greater fool theory in action. Let's not take a moment to step back and think about this, because hey it's going up! If I'm positive it's a pyramid scam, why should I put my money into it?

JoeAltmaier 9y ago
Because you can get out soon, before the crash?
- chairmanmow 9y ago
  Not a bad reply. Sure I can pump some $ into it in the short but who's to say that capital injection wasn't the straw that made the black market assassin cash out and convert it into something has proven value, gold, etc. Likely what's happened/happening is money is being sucked out of our economy into a shadier one. Silly American buys some bitcoin with their credit card a Russian who spun up a miner buys some gold with their credit card debt. Silly people see bitcoin goes up, think equity's been created there. It's debt.
- rhino369 9y ago
  That is classic great fool theory thinking. If it crashes, you might not be able to get it out in time to make a profit. Remember, you'll need some idiot to buy your shares if you want to cash out.

aeriklawson 9y ago

I would be careful saying Bitcoin in particular is being cemented. There's nothing stopping its downfall from an "improved" cryptocurrency or other issues.