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I think the rise in BTC is also attributable to the fact that the Fed _hasn't_ been buying BTC, and therefore hasn't artificially propped up its price. The same

I think the rise in BTC is also attributable to the fact that the Fed _hasn't_ been buying BTC, and therefore hasn't artificially propped up its price. The same can't be said for stocks, real estate, or anything else available on equity markets. Couple that with the fact that bitcoin has no 'intrinsic value' and therefore isn't capped at the top or bottom, and you've got an asset that: 1) May survive inflation intact. 2) Cannot really be overpriced (or underpriced) since it is not tied to anything except itself. This makes for a pretty juicy opportunity for those who don't want to invest in assets the fed has been propping up. Of course there are downsides. The lack of intrinsic value means there is no real price cap at the top... or the bottom. Hence volatility. It can also simply be banned from being purchased with fiat currency.

JumpCrisscross 6y ago
> the Fed _hasn't_ been buying BTC, and therefore hasn't artificially propped up its price. The same can't be said for stocks, real estate, or anything else available on equity markets. The Fed isn’t buying most equities. The monetary transmission channel for equities is exactly the same as Bitcoin’s.
- CapmCrackaWaka 6y ago
  > The monetary transmission channel for equities is exactly the same as Bitcoin’s. Can you explain what you mean by this? From my understanding the fed has been buying corporate bonds and ETFs directly. I shouldn't have said the Fed is buying 'anything else available on equity markets'.
  - JumpCrisscross 6y ago
    > Can you explain what you mean by this? From my understanding the fed has been buying corporate bonds and ETFs directly The Fed has been buying bond ETFs as a way to buy bonds. (Bonds are illiquid, and a whale like the Fed buying them individually can create artefacts.) When the Fed buys it puts the asset on its balance sheet and gives the seller money. That money can then be spent or re-invested. Spoiler: it's been getting re-invested. That is the transmission channel from the Fed's buying to other asset prices, e.g. stocks and non-target bonds and Bitcoin and beanie babies.

JumpCrisscross 6y ago

> the Fed _hasn't_ been buying BTC, and therefore hasn't artificially propped up its price. The same can't be said for stocks, real estate, or anything else available on equity markets. The Fed isn’t buying most equities. The monetary transmission channel for equities is exactly the same as Bitcoin’s.

CapmCrackaWaka 6y ago
> The monetary transmission channel for equities is exactly the same as Bitcoin’s. Can you explain what you mean by this? From my understanding the fed has been buying corporate bonds and ETFs directly. I shouldn't have said the Fed is buying 'anything else available on equity markets'.
- JumpCrisscross 6y ago
  > Can you explain what you mean by this? From my understanding the fed has been buying corporate bonds and ETFs directly The Fed has been buying bond ETFs as a way to buy bonds. (Bonds are illiquid, and a whale like the Fed buying them individually can create artefacts.) When the Fed buys it puts the asset on its balance sheet and gives the seller money. That money can then be spent or re-invested. Spoiler: it's been getting re-invested. That is the transmission channel from the Fed's buying to other asset prices, e.g. stocks and non-target bonds and Bitcoin and beanie babies.