| The whole world economy makes no sense. The finance and tech industries in particular are a mess; there seems to be no correlation between value creation and profit. Whenever I hear successful entrepreneurs bash cryptocurrencies, I wonder how they can simultaneously hold the following 3 thoughts inside their heads: - My company became successful in the last 10 years because it added value to the economy. - Cryptocurrencies became successful in the last 10 years in spite of subtracting value from the economy; they are the exception to an otherwise efficient market. - Capitalism works. If cryptocurrencies were an exception to an otherwise highly efficient and meritocratic economy, could we say the same about bonds which have negative yields? Maybe the following thoughts are more logically consistent: - My company became successful in the last 10 years because I exploited a vulnerability in the economy. - Cryptocurrencies became successful in the last 10 years because they exploited a vulnerability in the economy. - Capitalism doesn't work because it's vulnerable to hacks. Also, to explain the current bonds situation: - Bonds can have positive value in spite of negative yields because some investors believe that the vulnerabilities in the economy can be patched (e.g. it's possible to increase interest rates) and that bonds will eventually return to positive yields. |