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trust comes and goes - we ll see that when the current negative-rate world goes belly up. even as last resort measures, cryptos have their uses
by buboard 7y ago
trust comes and goes - we ll see that when the current negative-rate world goes belly up. even as last resort measures, cryptos have their uses
- short_sells_poo 7y agoWhen that happens, I'd surmise that the following is not going to be a good hedge: a completely ephemeral "asset" that is not backed by any conventional power structure or society, while at the same time being fully dependent on a highly sophisticated infrastructure made possible by said power structures and societies. Cryptocurrencies depend on a redundant and highly interconnected network of many diverse actors to be able to maintain their trust guarantees. How that network is going to stay around in a doomsday scenario is very much up in the air. The main point, the crucial point of a doomsday hedge is that it should depend as little as possible on the intricacies of the old world.
- buboard 7y agothe same goes for cash & credit card, and in any case an apocalyptic war resets all prices to 0. Or you could extoil the virtues of gold but good luck carrying your gold in an EU country from Jan 1st, let alone the Moon and Mars
- short_sells_poo 7y agoOf course traditional assets are highly uncertain if the world goes tits up, but you were the one hinting that cryptocurrencies would be a good hedge in a doomsday scenario. The truth is that it is extremely difficult to predict what asset to hold in such a case. Physical assets can be confiscated by force, ephemeral assets are likely to just cease to exist. Perhaps the best hedge is nothing as material as gold, or guns, or money, but having a large and robust network of friends and acquaintances. Ultimately, being connected (not just in a technical sense) is the best enabler of success in or out of a doomsday event I think.