Bitcoin: Everybody Gets What They Want

"Win or lose, everybody gets what they want out of the market. Some people seem to like to lose, so they win by losing money." - Ed Seykota

Because someone has to say it: Bitcoin and all its securitized mutations are designed to facilitate the transfer of capital from less intelligent people to more intelligent people. None Left Behind policy means this transaction can be done in less than one ten-thousandth of a bitcoin.

Below: Annual relative performance for some of the more popular bitcoin derivatives: BTC, GBTC, BCII, LBCC, LFIN

Psychological Stages of a Pump and Dump

Real Cost of a Bitcoin

Bitcoin crossed the $13,000 mark today, up from $11,500 yesterday, as bulls resume control of a temporarily un-shortable market.

That makes the current opportunity cost of owning one bitcoin: 5 S&P 500s, 77 shares of Apple, 60 shares of Exxon Mobile, 240 barrels of oil or 10 ounces of gold.

Anti-Trump, Anti-Bear Market

Note that MSM is now equating bitcoin prices with stock prices, but they neglect to report on bitcoin when stocks close in the red. More agrarian innovation in subtle sweeps at Prez.

the greater the frequency of anti-Prez "stories" on MSM, the higher the spoos. never fails. just pray they keep up the negative coverage.

— Walton McGuinty (@rwalton22) October 5, 2017

Bitcoin

The only people more ignorant than the people buying bitcoin on the way down are the ones that didn't buy it on the way up.

Why Bitcoin is a Derivative, not a Currency.

In order for Bitcoin to be considered a currency it must satisfy three conditions: 1. be a store of value, 2. a medium of exchange and 3. a unit of account.

What separates fiat currencies from BTC is the fact that they satisfy the most critical condition: being a unit of account. The US Dollar is considered a real currency because it satisfies that critical condition. 1 USD is just that: 1 USD. It is backed by nothing other than the full faith and credit of the United States Government. It is not a derivative.

BTC, on the other hand, is a derivative, and is not a unit of account, as it is backed by the nominal value of the USD, which, in this example, is the independent variable.

In order for something to be considered a unit of account, it must have an independent value metric. If it does not have an independent value metric, then its value, by definition, is derived from some other thing. When the value of an asset is derived from the value of an underlying, that asset is defined as a derivative.

Closed GBTC (5-26-17)

Long GBTC @ 381