Just as a friendly reminder, if you bought any major crypto when Matt Damon told you “Fortune favors the brave”, you’re still technically down on your initial purchase.
This is probably the media trying to get some bags pumped.
This is probably the media trying to get some bags pumped.
The graph of the price of bitcoin has been going up exponentially since it launched. Every four years starting one year before the halving event it shoots up for a year and then falls:
https://www.monochrome.au/research/articles/why-do-people-lo...
You say it like it's a bad thing?
The fact that Bitcoin behaves like no other asset on the planet is precisely what makes it interesting, worth understanding, and if you can stomach the volatility over sizable stretches of time, worth owning.
This was true (although hard to understand back then) on January 3rd 2009, 18:15:05h UTC and still holds true 15 years later.
I see this as a means to sucker more retail cash in and have the early adopters of Bitcoin hoover it up.
For the record, my statement as of right now is still true. Remember that Bitcoin peaked at nearly 69k a piece and it’s currently at around $42k a piece.
This is really feeling like tragedy of the commons and needing to find more ways to pull in real money into this system so whales can swim in their piles.
No capital gains, for one. "Buy BTC for my IRA" =/= "Bet my entire retirement fund on BTC"
Also, the halvening I imagine will be a very bad thing for miners, unless it’s guaranteed to double in price, miners are going to suddenly make less in value after the event occurs. Just because the halvening happened to behave a certain way in the past doesn’t guarantee future results.
You asked for good reasons why someone would put BTC in an IRA, and I gave you one. Whether or not "degenerate gamblers" would follow that advice is moving the goalposts. You can responsibly use your IRA to buy stocks as well, but that's irrespective of whether "degenerate gamblers" would abuse that.
>Also, the halvening I imagine will be a very bad thing for miners [...]
Are you replying to the wrong comment? I thought we were talking about IRAs?
Yup.
Better yet, they own Bitcoins.
Remember GME, AMC?
Dunno, maybe you should ask State Street Global Advisors[1] or Blackrock[2] why they have gold ETFs, when investors could just gamble on the yellow stuff itself.
[1] https://www.ssga.com/us/en/intermediary/etfs/funds/spdr-gold...
[2] https://www.ishares.com/us/products/239561/ishares-gold-trus...
There's a good chunk of money that for regulatory reasons CAN'T touch it until it hits this structure.
At any rate, one consideration folks don’t seem to have for the halvening is the reduction in rewards for miners.
As mining becomes more expensive and transaction fees increase exponentially, I see more and more smaller miners dropping out of the pool as it becomes too expensive for them to operate (and we are in a high interest rate environment, so capital for borrowing is much more expensive to acquire). Then the miners that are left start to concentrate and potentially cause a security concern. It becomes too top heavy.
I’m not sure why alarm bells aren’t going off for Bitcoiners?