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I don't disagree on the price signals, but this is the logic of corporations with assets, liabilities, cash flows, investors, boards, etc. It isn't necessarily
by abathur 5y ago
I don't disagree on the price signals, but this is the logic of corporations with assets, liabilities, cash flows, investors, boards, etc.
It isn't necessarily the same as the logic of nation-states sitting on finite resources that may, from some point, only fall in total value.
Or the logic of money launderers, who are perfectly willing to make terrible deals in order to convert undesirable resources into desirable ones.
- kragen 5y agoBut how could that play out? If you're Mohammed bin Salman and you want to maximize your earnings from the oil left in Ghawar and the smaller fields, stipulating that you believe the international oil market will be vastly smaller in a decade or two, how do you do it?
- abathur 5y agoAnything you can convince yourself isn't losing money. I suppose that math can get very weird if countries factor in expected appreciation of crypto they plan to hold. And even weirder if they end up perceiving a geopolitical stake in maintaining a certain fraction of the global hash rate. When I mention the logic of money-launderers, I mean something more like https://www.elliptic.co/blog/how-iran-uses-bitcoin-mining-to-evade-sanctions https://www.elliptic.co/blog/how-iran-uses-bitcoin-mining-to...