Or he could be a non-parasite and buy something real like stocks in oil companies, gun manufacturers or textile companies manufacturing in Bangladeshi sweatshops.
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share the wealth goddamn capitalist pigs.
But why? What makes investing in a basket of companies which give you a variable positive return because they are expected to grow different than âinvestingâ in a company which uses your money to invest and grow, only its business model is to give you a fixed return in advance instead of a variable one.
Sure I was being sardonic, but itâs also clear that Riverman has no idea what the risk profile is or where the returns come from. Like is Gemini going to go under? Are they going to take your money and run? Go ask a non-crypto investment company aka a hedge fund if a 8% return is even that impressive.
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I would like to hear more.
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Is this supposed to be an allegory for crypto skeptics? Or just a really unlucky TR?
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It can be both
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These types of TRs that are just bad after bad really appeal to the Jewishness in me.
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Oh itâs one of my favorite posts I ever read on 22
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one of the things people struggle with the most is how to take the ânot being result orientedâ approach from poker into other aspects. usually they use it as a reason to keep their existing opinions regardless of any new evidence
This is absolutely false. I am getting passive income returns on almost every single crypto asset I own. Thatâs what all this DeFi stuff is about. There are thousands of ways to invest across dozens of platforms. You can stake other crypto projects. You can loan out your crypto. You can earn fees by adding liquidity to decentralized exchanges.
One of my biggest leaks is that I hate having stuff just sitting there so much that Iâm never liquid when I need to be.
Thatâs what Gemini is indeed doing youâre right, I phrased it as investing in their business model to complete the analogy but probably made it sound more specious. As soon as they canât lend out the money for that rate, theyâre going to lower their offered rates. I believe theyâve already done so in the past.
My general point was that the expected return of SPY which is advocated by every financial professional and hugely pushed by people like Riverman seems no less based on voodoo and âpast performanceâ arguments which if they were made by someone regarding crypto would be laughed out of the room. The is especially true if youâre a typical progressive who thinks America is in decline! Here we are screaming about late-stage capitalism yet expecting our portfolio returns to be correlated to those during WW2.
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Except that houses have an intrinsic value, which creates a floor. When buying gets cheaper than renting, people buy, even if the housing market is in complete freefall.
When crypto is in freefall, after all the buy the dips people have been wiped out, and even the hard core HODLs are starting to crack, there is nothing to stop it from going to zero.
alright, well you probably shouldnât buy it then
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Thatâs like saying a bag of money is an asset that creates passive income because I could use it to fund profitable projects.
Iâm just saying this is one of the fundamental principles of this stuff - whatâs to backstop an asset in freefall? Dotcom stocks hit rock bottom and were finally a good value. Gold is shiny and people like to own it. Tulip bulbs at least make a nice flower. When pyramid schemes collapse, they collapse entirely.
Ironically, if BTC collapses and all the people holding it as an investment bail, it might actually become a useful currency. I could potentially see that as an end game. But not until all the speculators have been cleaned out.
Whatâs stopping it from going to zero is the same as the house going to zero - its raw value, which us pea-brains really canât quantify yet.
Bitcoin is either the biggest ponzi/pyramid/bubble catastrophe of our lifetime or itâs been heavily consumed by the big money caps before the average folk realizes what the world will look like 20 years from now. It really canât be that much of a combination of both. The longer time goes without it crashing, the more the latter will be correct.
BTC by definition has no raw value other than the goodwill of people who like to own it.
USD is backed by the US government, which has tanks and fighter jets. It also has a multi-century track record and at the moment is the worldâs reserve currency.
The network is the value
If everyone sold their BTC tomorrow, the network would have zero value. Itâs a notion.
This is something illustrates just how long it can take for shit like this to fall apart. Youâre definitely old enough to know that the dotcom wasnât some 1 month long thing. It took like 4 years. People see the price of meme stocks as just âpart of the normâ now and donât really understand just how long it took for bubbles to actually burst.