Mutual fund titan Bill Miller is talking bitcoin again.Yahoo Finance
“One of the things that’s interesting about bitcoin is that it gets less risky the higher it goes,” Miller told CNBC Friday. “That’s the opposite of what happens with most stocks.”
Miller continued to describe bitcoin as “a supply-and-demand story” with roughly 900 bitcoins created each day and a swarm of retail and institutional investors scooping up enormous chunks of available supply.
Bitcoin Is ‘Less Risky the Higher It Goes,’ Says Investor Bill Miller on CNBC
Zack Voell
Bitcoin Price Will Now Never Officially Go to Zero — Here’s Why
William Suberg
Business Insider
Why The Fair Price Of Bitcoin Is $0
Eric Tymoigne, New Economic Perspectives
Why The Fair Price Of Bitcoin Is $0
Eric Tymoigne, New Economic Perspectives
5 comments:
"Capital value is income capitalized, and nothing else." —Irving Fisher
Now if we capitalize the income generated by Bitcoin, which is zero, we end up with zero.
As an aside, here's an interesting Twitter feed on how Tether is manipulating the price of Bitcoin higher:
Tether Price Manipulation Thread
A quote from the above feed:
In a court hearing, Tether's lawyer admitted the stable coin was only backed by 74% cash, and securities.
More here from a Forbes Dec 16, 2020 article:
Bitcoin hit an all-time high today at $20,000 and “hodlers” have been rejoicing. However the upswing this year leaves consistent questions about the issuance of Tether, the stablecoin (USDT) that seemingly has a limitless ability to print money. The flow of Tether into Bitcoin generally correlates to the rise in price particularly over the past year - whenever Bitcoin seems to fall, a load of new Tethers are created (often over $50m at a time) and buys BTC, taking the price of BTC back up. You can see the Tether creation posted realtime on twitter here and via CoinMarketCap:
This staggering increase of over $4b of new Tethers implies that someone paid $4b into Tether to purchase Bitcoin in just the past three months. Tether has a somewhat of a checkered past with its policy not to publish any kinds of audits nor show proof of funds. Whether or not they are the recipient of $4b of cash is not known but it raises questions especially when Tether is created over the weekends and other times when other markets wouldn’t normally trade.
Some academics have also researched this and find a correlation between the issuance of Tether and the price and corresponding market cap of Bitcoin.
So if you’re a Bitcoin believer, just follow the Tether printer and watch the printing. But if they stop printing be wary of the downside if there isn’t that injection of USDT coming so regularly. We may see more on January 21 when the NY Attorney General’s deadline for information from them.
source: The Problem With Bitcoin At $20,000
I still think it's a pyramid scheme but it make work for a long time as their are billions is people in the world. It could crash to near zero and then people will start buying it again and maybe it can go on forever. But non one needs bitcoin for anything, unlike commodities, or houses, etc. Traders make money speculating on coffee, but there is a true demand for coffee as well. Bitcoin is just for speculation, apart from buying guns and drugs on the dark net.
Whoops, some typos in there. Make = work, their = they're.
It's foolishness. I'm starting to have respect for gold bugs, or the people who ingest silver until their skin turns blue.
Bitcoin processes 4.6 transactions per second. Visa does around 1,700 transactions per second on average (based on a calculation derived from the official claim of over 150 million transactions per day).
Bitcoin scalability problem
Economics teaches us that in order for something to have value, it must be both scarce and useful. While Bitcoin is scarce, it is not useful as a currency. Also, while Bitcoin is scarce, cryptocurrencies are not.
Suppose that Bitcoin reached $100k and stopped there. If you held a $100k stock portfolio, and based on historical returns, you would expect to earn about $10k in dividends and capital appreciation. What would you get for holding a Bitcoin?
Zero.
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