4 ms·
In the long term everything goes to zero, so an asset that pays no dividends but has significant storage costs isn't much good for investment. Bitcoin holders
by LikesPwsh 1y ago
In the long term everything goes to zero, so an asset that pays no dividends but has significant storage costs isn't much good for investment.
Bitcoin holders as a group are constantly losing money by definition. Some of them cash out at a profit, I suppose.
- FabHK 1y ago> Bitcoin holders as a group are constantly losing money by definition Modulo market cap representing unrealized PnL, but yes otherwise. Miners and exchanges take a good cut.
- LikesPwsh 1y agoYeah the paper gains are nice, but they all net to zero in real money.
- hx8 1y agoI'm trying to figure out what the significant storage costs for bitcoin are. It's a bit higher than a Robin Hood stock because it costs fees when buying/selling, but it's significantly lower than gold/silver which really require some investment in physical security or a vaulting service.
- LikesPwsh 1y agoMining and theft mostly.
- ahazred8ta 1y agoIt's the miners who are hemorrhaging hard currency. It's currently costing $8-10 billion per year to keep the BTC blockchain alive, but blockchain fees are paid when transacting, not when HODLing, so it's not a storage cost.
- LikesPwsh 1y agoMiners get paid in BTC but have costs in money. They have to sell, so the money is coming from buyers and impacts holders via reduced demand.