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by jerrymiller 1958 days ago
Case in point still. The contradictions you make are astounding. What's more astounding is that you are not even noticing them.

> Huge investment firms diversifying into crypto

> this is an indictment of the cryptocurrency community's basic financial literacy

I suggest that maybe it's you who lacks basic financial (and econ) literacy, not investment firms or the "cryptocurrency community"

> You can't just call a speculative instrument a "store of value" because every who bought into it in the past two months has seen a positive return

No, everyone who bought BTC at _any point in the past_ and didn't sell are seeing positive returns. This is the definition of a good store of value. You are conflating SoV properties with volatility. They are orthogonal. SoV is a long-term play.
1 comments
woodruffw 1958 days ago
> This is the definition of a good store of value.

No, it isn't. Apart from the fact that countless people have lost their shirts to BTC (it's down 6% today! There are losers today!), an asset whose value rises in unchecked proportion to the real economy represents a fundamental liquidity risk: everybody is going to want to sell, but nobody is going to want to buy.

That is why cash is the canonical store of value: not only does it not change (much), but you can exchange it without undermining the value itself.

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jerrymiller 1958 days ago
BTC is liquid enough today for companies to move $1B without moving market (see MicroStrategy). Granted, money (USD specifically) is even more liquid, but that's why it's money -- by definition, money is the most liquid good.

BTC's liquidity has been increasing and will continue to increase in the future, so it's just a matter of time.

And you are again conflating SoV with volatility. Todays cash (USD) is not volatile but it's a terrible SoV. That's why no one is storing their wealth in USD and flee to harder assets (stocks, bonds, gold, and BTC).

Highly recommend this video for how investment firms think about BTC and SoV and how you should too: https://www.youtube.com/watch?v=KlXqfibqb38

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