I listened to the Kieth Weiner POTP interview today, and I feel like he didn’t really give that much to support his argument against ₿itcoin, just that it’s volatile, called it a speculative asset, and that people often justify moves in the market after the fact with some made us stuff that sounds right and may or may not be true.
As far as ₿itcoin and gold being speculative assets, monetary goods always trade at a premium to their utility so I would classify them more as a monetary good more than a speculative asset. As Robbie mentioned though, the reason the ₿itcoin maxis hodl ₿itcoin is because they think that it will eventually become the next global reserve currency since it is the best at the 7 properties of money (Durable, Portable, Fungible, Verifiable, Divisible, Scarce, established history, and censorship-resistant).
As far as if it is money now, the three uses of money (store of value, medium of exchange, and unit of account) can be used to gauge that. Right now it’s only really being used as a store of value, and to a very limited degree a medium of exchange, so it is in the monetization process. It would be expected with any new money (or technology) undergoing monetization that its value would fluctuate a lot because of hype and disillusionment, but that it would eventually stabilize. Monetary transitions typically take several decades so it won’t happen right away, but then everything seems to happen faster in modern history so it might happen sooner than we think.
It’s worth noting that there have been scenarios, usually in countries experiencing very high inflation, where multiple forms of money are used for the different roles. Even right now in America, the dollar by itself isn’t used as a store of value for long periods of time since everyone knows it is losing value, people instead turn to stocks, bonds, real estate, gold, etc., it’s why stocks and real estate trade way above their utility or P/E ratios. Because of inflation, everyone is essentially forced to become an investor!
DinDjarin / Din Djarin
npub19n…vh920
2024-03-13 05:40:22
Author Public Key
npub19nfz3ksvl5sc5vwt6z83rr7mmzzpam69ntaz8av8pmt9tl04mgzs3vh920Published at
2024-03-13 05:40:22Event JSON
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"content": "I listened to the Kieth Weiner POTP interview today, and I feel like he didn’t really give that much to support his argument against ₿itcoin, just that it’s volatile, called it a speculative asset, and that people often justify moves in the market after the fact with some made us stuff that sounds right and may or may not be true.\n\tAs far as ₿itcoin and gold being speculative assets, monetary goods always trade at a premium to their utility so I would classify them more as a monetary good more than a speculative asset. As Robbie mentioned though, the reason the ₿itcoin maxis hodl ₿itcoin is because they think that it will eventually become the next global reserve currency since it is the best at the 7 properties of money (Durable, Portable, Fungible, Verifiable, Divisible, Scarce, established history, and censorship-resistant). \n\tAs far as if it is money now, the three uses of money (store of value, medium of exchange, and unit of account) can be used to gauge that. Right now it’s only really being used as a store of value, and to a very limited degree a medium of exchange, so it is in the monetization process. It would be expected with any new money (or technology) undergoing monetization that its value would fluctuate a lot because of hype and disillusionment, but that it would eventually stabilize. Monetary transitions typically take several decades so it won’t happen right away, but then everything seems to happen faster in modern history so it might happen sooner than we think. \n\tIt’s worth noting that there have been scenarios, usually in countries experiencing very high inflation, where multiple forms of money are used for the different roles. Even right now in America, the dollar by itself isn’t used as a store of value for long periods of time since everyone knows it is losing value, people instead turn to stocks, bonds, real estate, gold, etc., it’s why stocks and real estate trade way above their utility or P/E ratios. Because of inflation, everyone is essentially forced to become an investor!",
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