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> “if you view it as a savings technology then it's the best one that's ever been created” IMO this crown belongs to ETFs. Putting all your eggs in the Bitcoi
by pavlov 6y ago
> “if you view it as a savings technology then it's the best one that's ever been created”
IMO this crown belongs to ETFs.
Putting all your eggs in the Bitcoin basket would be an extremely risky strategy. A portfolio of ETFs is a much better place for most people’s savings.
- xiphias2 6y agoETFs are all managed by the banking system that I'm happy to be outside of at this point. Thanks, but no thanks to GLD and other scams that ,,may send the value of gold in dollars if it doesn't have enough''
- H8crilA 6y agoETFs are simply mutual funds married with high frequency trading. Read about Authorized Participants if you're confused as to what HFT has to do with ETFs. Overall it's a decent improvement over the very old idea of open-ended funds, given the recent digitalisation of trading and super fast market making with tiny spreads. PS. I like ETFs, I think they're achieving exactly what are they supposed to achieve.
- mmsmatt 6y agoAlso, read the prospectus of any ETF you already own, and you’ll get the gist of APs, enough to understand why your fees are so low.
- H8crilA 6y agoThere's also securities lending (to short sellers), many ETF sponsors retain all proceeds from securities lending for themselves. This is similar to how many brokerages earn most of their revenues by taking a spread on cash balances, so they can charge very little on transaction costs (i.e., they pay you less for unused cash than money markets pay them). After all borrowing money is the same as shorting cash, so there's nice symmetry here :)
- kneel 6y agoETFs are still subject to whatever country's tax laws. Imagine putting your retirement into various funds only to have a Brexit type situation destroy your hard earned money. Bitcoin is borderless, permissionless storage of value. Game theory built in (anyone powerful enough to attack the network is better incentivized to participate in it.)
- JumpCrisscross 6y ago> still subject to whatever country's tax laws So is Bitcoin.
- kneel 6y agoBitcoin is only subject to tax if you move it back into the controlled financial system. Otherwise it's just numbers hopping around anonymously on a ledger.
- JumpCrisscross 6y ago> Otherwise it's just numbers hopping around anonymously on a ledger That’s tax evasion. I know it’s chic to be callous about tax fraud in some cryptocurrency circles. But the same has been true of cash, art and bearer bonds for centuries.
- kneel 6y agoIt's not tax evasion if the hops are non taxable events, and the privacy of wallets enable anyone to deny it. This is why Bitcoin is an existential threat to government power. I personally think it's empowering and great for the individual, however if you tend towards more statist views then this would seem like anarchy.
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