Public Fascination with Bitcoin Price is Slowing the Adoption of Bitcoin

Few people ask me about the social, political, and economic impact of cryptographically-secure, time-stamped distributed ledgers.

(Which stinks, I wrote a book, Consensusland, about that.)

No, most people ask “should I buy bitcoin?”

They seem interested in whether they can make money from its price going up.

So you’d think the facts would convince them to buy bitcoin, right?

After all, its price has tripled over the past 18 months. It’s up more than 50% so far this year and almost never finishes a year lower than where it started. Institutional investment in bitcoin funds grew more in the first half of this year than all previous years combined.

Nope, not enough.

Facts and history will not convince people to buy bitcoin. It will take something much more powerful.

Fortunately, that something is here.

Yield, where are ye?

Investors don’t have any good ways to make money anymore. Traditional investments involve more risk and lower returns than ever before.

Thanks to the pandemic, you can’t invest in the real economy. Nobody’s making movies or going on cruises. Nobody’s going to the theatre or sporting events. Nobody knows when (or if) building starts and big infrastructure projects will get off the ground.

Thanks to central banks, you can’t invest in equities, cash, or debt, either.

The stock markets are full of businesses that have no profits or customers. Many corporations have stopped buying back shares. High P/E ratios suggest poor future returns and nobody knows whether the economy will rebound. For many companies, profits have dried up, making it hard for them to pay dividends.

(People like to say bitcoin doesn’t offer dividends, but what happens when stocks don’t either?)

Most major economies offer negative-yielding debt and US treasury notes rates remain effectively zero. Corporate debt is almost worthless, outside of a few bankrupt businesses waiting for somebody to take them over. Savings accounts pay maybe 1% if you’re lucky.

Private equity, perhaps?

Perhaps not. Start-ups are strapped for cash and struggling to conquer COVID-19.

You can’t even invest in banks anymore. European banks are barely solvent and the U.S. Federal Reserve stopped its banks from buying back stock and raising dividends, two of the biggest incentives for investors.

China and U.S. trade relations have fallen apart, so you can’t invest in China. The E.U. might fall apart, so you can’t invest in Europe.

A new investing paradigm

As an investor, you want to find ways to maximize opportunities and minimize risks. In this new investment landscape, that means making unusual choices.

For example, money has started flowing to emerging markets, despite an ever-growing list of countries defaulting or restructuring their debt.

Why do investors feel compelled to buy investments in countries that probably will never repay them?

As always, you have speculators looking to flip bonds, but mostly, it’s just investors looking for yields. Unlike junk bonds and penny stocks, emerging markets have special financial instruments that protect investors from some of the downside risks.

Plus, unlike corporations, these countries can raise taxes when they fall short on payments. Meanwhile, massive QE suggests the value of the dollar will fall, making emerging market debts easier to repay over time.

Why buy junk bonds and penny stocks when you can get a higher return with less risk in emerging market debt?

Return of the liquidity trap

This problem exists because of the so-called liquidity trap—lots of money, little yield, and people too scared to spend.

When you have no incentive to invest, you don’t invest. Why give up cash and property when your expected risk-adjusted returns are basically zero?

For a more detailed explanation of this phenomenon, read this 2014 Report from the U.S. Federal Reserve.

Some people think that this liquidity trap has created a massive “everything” bubble where equities, businesses, bonds, property, and everything else gets pumped up beyond their “real” values.

Surely _something _has to give, right?

Economist Robert Shiller won a Nobel prize for his work on assets and how assets acquire value. He discovered that price is a function of people’s actions and behaviors. Markets are not efficient. Asset bubbles only pop when people stop believing in them.

Shiller would say “it’s more nuanced than that,” which is true, but I’m summarizing decades of research into a paragraph. That’s the easiest way I can explain it.

In other words, the bubble may never pop—if it’s even a bubble in the first place. It will just persist, skewing people’s economic decisions, until people decide to change their behaviors.

Money now, crypto later

Those behaviors will have to change eventually.

Money tends to flow into the hands of whoever can do the most with it. As asset prices rise, investments no longer produce as much yield as they did before. You need to spend more to make less.

At some point, investors will have to find better options. With $3 trillion sitting in U.S. bank accounts, $22 trillion in U.S.-registered investment funds, and at least $40 trillion in private wealth held offshore, plus trillions more in cash and real estate, there’s a lot of money searching for yields.

Investors know this.

Recently, banks and large investment institutions got U.S. regulators to allow them to buy private equity, a market filled with small businesses that have never turned a profit.

At what point do money managers feel compelled to put some of their clients’ money into bitcoin, the best performing asset of the past ten years? Or, place a small wager on a token sale, like Harvard did?

How low do bond yields and stock dividends get before casual investors take a flyer on “the fastest horse,” as investment legend Paul Tudor Jones calls it? Maybe they start with a DeFi platform where they can fetch 6-8% returns? It beats 1% at the bank.

#bitcoin #blockchain #cryptocurrency #bitcoin-bull-market #stock-market #decentralized-finance #bitcoin-spotlight #hackernoon-top-story

What is GEEK

Buddha Community

Public Fascination with Bitcoin Price is Slowing the Adoption of Bitcoin

Few people ask me about the social, political, and economic impact of cryptographically-secure, time-stamped distributed ledgers.

(Which stinks, I wrote a book, Consensusland, about that.)

No, most people ask “should I buy bitcoin?”

They seem interested in whether they can make money from its price going up.

So you’d think the facts would convince them to buy bitcoin, right?

After all, its price has tripled over the past 18 months. It’s up more than 50% so far this year and almost never finishes a year lower than where it started. Institutional investment in bitcoin funds grew more in the first half of this year than all previous years combined.

Nope, not enough.

Facts and history will not convince people to buy bitcoin. It will take something much more powerful.

Fortunately, that something is here.

Yield, where are ye?

Investors don’t have any good ways to make money anymore. Traditional investments involve more risk and lower returns than ever before.

Thanks to the pandemic, you can’t invest in the real economy. Nobody’s making movies or going on cruises. Nobody’s going to the theatre or sporting events. Nobody knows when (or if) building starts and big infrastructure projects will get off the ground.

Thanks to central banks, you can’t invest in equities, cash, or debt, either.

The stock markets are full of businesses that have no profits or customers. Many corporations have stopped buying back shares. High P/E ratios suggest poor future returns and nobody knows whether the economy will rebound. For many companies, profits have dried up, making it hard for them to pay dividends.

(People like to say bitcoin doesn’t offer dividends, but what happens when stocks don’t either?)

Most major economies offer negative-yielding debt and US treasury notes rates remain effectively zero. Corporate debt is almost worthless, outside of a few bankrupt businesses waiting for somebody to take them over. Savings accounts pay maybe 1% if you’re lucky.

Private equity, perhaps?

Perhaps not. Start-ups are strapped for cash and struggling to conquer COVID-19.

You can’t even invest in banks anymore. European banks are barely solvent and the U.S. Federal Reserve stopped its banks from buying back stock and raising dividends, two of the biggest incentives for investors.

China and U.S. trade relations have fallen apart, so you can’t invest in China. The E.U. might fall apart, so you can’t invest in Europe.

A new investing paradigm

As an investor, you want to find ways to maximize opportunities and minimize risks. In this new investment landscape, that means making unusual choices.

For example, money has started flowing to emerging markets, despite an ever-growing list of countries defaulting or restructuring their debt.

Why do investors feel compelled to buy investments in countries that probably will never repay them?

As always, you have speculators looking to flip bonds, but mostly, it’s just investors looking for yields. Unlike junk bonds and penny stocks, emerging markets have special financial instruments that protect investors from some of the downside risks.

Plus, unlike corporations, these countries can raise taxes when they fall short on payments. Meanwhile, massive QE suggests the value of the dollar will fall, making emerging market debts easier to repay over time.

Why buy junk bonds and penny stocks when you can get a higher return with less risk in emerging market debt?

Return of the liquidity trap

This problem exists because of the so-called liquidity trap—lots of money, little yield, and people too scared to spend.

When you have no incentive to invest, you don’t invest. Why give up cash and property when your expected risk-adjusted returns are basically zero?

For a more detailed explanation of this phenomenon, read this 2014 Report from the U.S. Federal Reserve.

Some people think that this liquidity trap has created a massive “everything” bubble where equities, businesses, bonds, property, and everything else gets pumped up beyond their “real” values.

Surely _something _has to give, right?

Economist Robert Shiller won a Nobel prize for his work on assets and how assets acquire value. He discovered that price is a function of people’s actions and behaviors. Markets are not efficient. Asset bubbles only pop when people stop believing in them.

Shiller would say “it’s more nuanced than that,” which is true, but I’m summarizing decades of research into a paragraph. That’s the easiest way I can explain it.

In other words, the bubble may never pop—if it’s even a bubble in the first place. It will just persist, skewing people’s economic decisions, until people decide to change their behaviors.

Money now, crypto later

Those behaviors will have to change eventually.

Money tends to flow into the hands of whoever can do the most with it. As asset prices rise, investments no longer produce as much yield as they did before. You need to spend more to make less.

At some point, investors will have to find better options. With $3 trillion sitting in U.S. bank accounts, $22 trillion in U.S.-registered investment funds, and at least $40 trillion in private wealth held offshore, plus trillions more in cash and real estate, there’s a lot of money searching for yields.

Investors know this.

Recently, banks and large investment institutions got U.S. regulators to allow them to buy private equity, a market filled with small businesses that have never turned a profit.

At what point do money managers feel compelled to put some of their clients’ money into bitcoin, the best performing asset of the past ten years? Or, place a small wager on a token sale, like Harvard did?

How low do bond yields and stock dividends get before casual investors take a flyer on “the fastest horse,” as investment legend Paul Tudor Jones calls it? Maybe they start with a DeFi platform where they can fetch 6-8% returns? It beats 1% at the bank.

#bitcoin #blockchain #cryptocurrency #bitcoin-bull-market #stock-market #decentralized-finance #bitcoin-spotlight #hackernoon-top-story

Savage Bitcoiners Volume 1: Interview with Psychedelic Bart

Originally published on Citadel21.com April, 21 2020

Name: Psychedelic Bart a.k.a. Psycho Bart

Country: United States

**How long have you been into Bitcoin and what got you interested? **

I’ve been into Bitcoin since 2013. I was initially drawn to BTC because I was a volatility junkie and I saw an opportunity to make more fiat. Over the years, I started to look into it more, take it seriously, and accumulate. Once you’ve figured out that Bitcoin is unstoppable, you’re deep in the rabbit hole.

How did you come up with your alias and why don’t you use your real name?

I came up with “Psychedelic Bart” because I grew up loving The Simpsons, Bart’s alter-ego El Barto, and Rob “Killer Acid” Corradetti’s artwork. I don’t use my real name because I value privacy.

Best Bitcoin experience and worst Bitcoin experience?

Best Bitcoin experience – befriending intelligent Bitcoiners over the years. It’s the best when you find people that are on the same wavelength as you. Worst Bitcoin experience – losing Bitcoin to trading shitcoins and leverage. I’ve learned my lesson.

What is the biggest fail you have ever seen in the Bitcoin world?

Mt. Gox. I didn’t get Goxxed but too many Bitcoiners got rekt from the shitty exchange. Learn from this and HODL YOUR OWN BTC.

What do you think about the Bitcoin markets volatility this last year?

Meh. You have to get used to the volatility because Bitcoin is still a new asset or else you’ll never make it out alive.

What are your thoughts on the upcoming halving and how will it affect price?

Not priced in! Most people still have no clue what Bitcoin is and the power it has. Bitcoin will moon again – it was designed to.

What is the biggest threat of COVID to the economy?

Government overreach destroyed Main St. and many small businesses.

What are your thoughts about the US Federal Reserve injecting so much money into the economy because of COVID?

Bbrrrrrrrrrrr.

How do you think this affects Bitcoin?

Anyone with a clue knows that the Fed is addicted to printing money and they’re not going to stop. More people are beginning to learn that Bitcoin is the best hedge.

Why do you think some people, especially noobs gravitate to shitcoins?

False advertising and unit bias. Shitcoiners lie and most people (even the really smart ones) are turned off from Bitcoin’s price.

What do you think most shitcoiners miss about Bitcoin?

That Bitcoin is light years ahead of everything else. Most people fall for the shitcoins’ marketing gimmicks, but when you take the time and figure out what the truth is, you’ll go all into BTC.

What do you have to say to shitcoiners who claim Bitcoin will fail?

Shitcoiners talk out of their asses all the time. I love this legendary quote: “If you don’t believe me or don’t get it, I don’t have time to try to convince you, sorry” - Satoshi Nakamoto.

**Who is the biggest Bitcoin sell out that deserves to be put on blast? **

Trace Mayer. Imagine building your reputation for years, then ruining it in a span of weeks with Mimblewimble Coin and other nonsense.

**Who are some of the most hardcore Bitcoiners you know and why? **

The most hardcore Bitcoiners are the ones that build, code, and HODL. Nothing beats skin in the game. Big shoutout to the contributors who write and review code.

**What Bitcoin startups or companies are you most excited about? **

Too many LOL. Coinkite, BTCPay, Samourai, Wasabi, River Financial, Unchained Capital, Cash App, Swan Bitcoin, LN Strike, Lolli, Fold App, Blue Wallet, myNode, Casa, and much more.

**What are your goto Bitcoin storage options? **

Coldcard Wallet. I recommend using it with a long passphrase for most people, multisig for the advanced crowd.

Any tips you want to give to people new to Bitcoin?

HODL your own keys, get used to the volatility, and dollar cost average.

Name some of your favorite information sources and/or podcasts in the space.

Stephan Livera, Tales from the Crypt, John Vallis’s Rapid-Fire podcast, Fun with Bitcoin podcast, Bitcoin Pleb Talk podcast, bitcoin-only.com, and of course Bitcoin Twitter.

Any last words of wisdom?

Think for yourself and never give up your freedom.

For more Bitcoin Articles check out www.citadel21.com!

Pirate Beachbum_ has been into Bitcoin since 2014 and doesn’t consider himself anyone special. Over the years he has written dozens of articles about Bitcoin, and interviewed many of the top minds in the space. Most people know him from co-founding a rogue group of Bitcoiners, who call themselves the Bitcoin Taco Carnivore Plebs, with his good friend Hodlonaut._

#bitcoin #savage-bitcoiners #citadel21 #hackernoon-top-story #bitcoin-spotlight #bitcoin-maximalism #bitcoin-price #btc

Bitcoin Price CRASHING Right Now!!! (Is This A Bear Market?)

Around the Blockchain is your favorite Cryptocurrency show discussing Bitcoin, Ethereum, Cardano, and the top altcoins. Today, our four crypto experts include BitBoy Crypto, CryptoWendyO, Andrew Mo, and Son of a Tech. Tune in for their insightful crypto analysis!

Today we’ll be discussing a government accepting Bitcoin as legal tender. We’ll mention the LARGEST E-Sports org signing a MAJOR deal with a crypto exchange and what it might mean for gaming and crypto. Finally, China might be over Bitcoin. What does that mean for the rest of the world?

📺 The video in this post was made by BitBoy Crypto
The origin of the article: https://www.youtube.com/watch?v=ME_ijx9TQWU
🔺 DISCLAIMER: The article is for information sharing. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Not investment advice or legal advice.
Cryptocurrency trading is VERY risky. Make sure you understand these risks and that you are responsible for what you do with your money
🔥 If you’re a beginner. I believe the article below will be useful to you ☞ What You Should Know Before Investing in Cryptocurrency - For Beginner
⭐ ⭐ ⭐The project is of interest to the community. Join to Get free ‘GEEK coin’ (GEEKCASH coin)!
☞ **-----CLICK HERE-----**⭐ ⭐ ⭐
Thanks for visiting and watching! Please don’t forget to leave a like, comment and share!

#bitcoin #blockchain #bitcoin price #is this a bear market? #bitcoin price crashing right now!!! (is this a bear market?)

BEST PRICING MODEL SHOWS US THE BITCOIN BOTTOM IS HERE!

One expert, and a world-class pricing model that has been used by many funds, institutions, banks and traders has indicated A BOTTOM SIGNAL!! We have taken a deep dive and will share the Bitcoin bottom price with you on today’s show.

ALL DATA MUST BE ASSESSED, EVERYDAY!
📺 The video in this post was made by Crypto Banter
The origin of the article: https://www.youtube.com/watch?v=G0Gs0R-uOVE
🔺 DISCLAIMER: The article is for information sharing. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Not investment advice or legal advice.
Cryptocurrency trading is VERY risky. Make sure you understand these risks and that you are responsible for what you do with your money
🔥 If you’re a beginner. I believe the article below will be useful to you ☞ What You Should Know Before Investing in Cryptocurrency - For Beginner
⭐ ⭐ ⭐The project is of interest to the community. Join to Get free ‘GEEK coin’ (GEEKCASH coin)!
☞ **-----CLICK HERE-----**⭐ ⭐ ⭐
(There is no limit to the amount of credit you can earn through referrals)
Thanks for visiting and watching! Please don’t forget to leave a like, comment and share!

#bitcoin #blockchain #best pricing model shows us the bitcoin bottom is here! #best pricing #bitcoin bottom

Most EXPLOSIVE Bitcoin Opportunity 2021 (In Depth Bitcoin Mining Analysis). (HOT NEWS!!)

Volcanoes! No, this isn’t a flashback to your eighth-grade science project. President of El Salvador, Nayib Bukele, is proposing harnessing the geothermal power of volcanoes to mine Bitcoin in his country.

Believe it or not, this idea isn’t just to make the news of El Salvador using Bitcoin as legal tender even more explosive than it already has been. It’s a truly sustainable energy source that El Salvador already uses, and it may be the key to unlocking a green future for mining Bitcoin.

0:00 Intro
0:52 El Salvador, Crypto, Geothermal Energy
3:07 Why Geothermal?
4:52 How much energy mining needs
6:35 Closing thoughts
📺 The video in this post was made by BitBoy Crypto
The origin of the article: https://www.youtube.com/watch?v=NXEGZB5RbDc
🔺 DISCLAIMER: The article is for information sharing. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Not investment advice or legal advice.
Cryptocurrency trading is VERY risky. Make sure you understand these risks and that you are responsible for what you do with your money
🔥 If you’re a beginner. I believe the article below will be useful to you ☞ What You Should Know Before Investing in Cryptocurrency - For Beginner
⭐ ⭐ ⭐The project is of interest to the community. Join to Get free ‘GEEK coin’ (GEEKCASH coin)!
☞ **-----CLICK HERE-----**⭐ ⭐ ⭐
Thanks for visiting and watching! Please don’t forget to leave a like, comment and share!

#bitcoin #blockchain #most explosive bitcoin opportunity 2021 #depth bitcoin mining analysis #most explosive bitcoin opportunity 2021 (in depth bitcoin mining analysis) #bitcoin opportunity 2021