Day 4- Short Bitcoin etf
I initiated a small position in $ProShares Short Bitcoin ETF (BITI.US)$. As the late Charlie munger said Bitcoin is rat poison. Warren buffett also explains why he is not investing in bitcoin, because it doesn't have the earnings power backing of companies or tax levying power of governments behind fiat currencies.
Some call bitcoin "digital gold", I think that's an insult to gold which historically is a safe haven in times of war and disaster and has industrial uses.
Some argue that bitcoin has a network thus been a first mover it is safe to invest.
Thought experiment, if I am the first one to digitally mint Dcoin and manage to convince others to exchange their dollar for my coin, I would also have built a network, but would you trust my earnings power so that when you want to cash out of Dcoin, you can do so?
In conclusion, bitcoin is a highly speculative financial instrument that should only be reserved for speculators. True investors would stay away from it.
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TechWhiz : Your arguments apply to gold in the early days too. Gold had industrial use, btc has financial transaction use.
Why gold and not other metals? The market decided on it as a store of value thru time. Now as tech improves , the market of new, tech savvy investors are deciding that btc is or will be the digital gold.
No 2 ways about it. The market decides. Maybe this new generation of investors love rat poison? So be it.
Ask Blackrock.
David Lee cm OP TechWhiz : Gold was a status symbol in the past, owning bitcoin is not a status symbol. Money launderers, smugglers, crime syndicates used bitcoin as transactions, who wants to be associated with these guys.
TechWhiz David Lee cm OP : Once btc crosses 100k or even 1m, you will wish you have this status symbol. Every revolutionary thing takes time to develop.
The bad actors are always there... in stocks, currency, real estates, etc. Owning these assets does not mean you are one of them. Does Michael Saylor look like a criminal? is Blackrock not respectable? Don't worry about these bad actors, they will be take care of in time.
Times have changed. you must change with the times or be left behind. It is a pity that people reject disruptive tech due to old beliefs or misunderstanding of what it is.
BTC represents a revolution of our times, just like electricity, the telephone, the internet and now AI.
Next revolutionary thing will likely be Quantum computing . please don't dismiss this too
David Lee cm OP TechWhiz : China has banned bitcoin for the reasons I listed below and it is a threat to central bank policy making. China is developing ai, quantum computing, AR, robotics etc., it is not against new technologies. Neither am I.