alt Hacker NewsI have a friend claiming bitcoin is a "store of value, tool for the de-banked (politically right), hedge against the rapidly inflating dollar, more valuable than gold" (paraphrasing). He further claims that "bitcoin can't be faked like 'uninspected' gold reserves" that are supposedly just "painted iron ingots".
I want to scream. This is a speculative investment with more bad actors involved than the SEC has investigated throughout its entire history.
I hate these bitcoin boom cycles. It's like all the lessons learned immediately get forgotten.
Him: "But this time is different. Last time the Democrats were holding it back. Trump is going to make a strategic crypto reserve. Trump and his allies are all pro-crypto. The Democratic party was trying to regulate it away."
I guess this will be the next lesson.
Replies
He might be right in some ways about Bitcoin but he fails to take into account that the price of Bitcoin may be inflated by Tether, a stable coin traded in large numbers for Bitcoin. New tether is minted by the billions, and has questionable auditing and oversight, and is used to buy Bitcoin on the open market.
There a couple of ways that the price of Bitcoin could drop precipitously and the unraveling of Tether is one of them.
Notice he isn't claiming its a currency, even if we take all the claims at face value. Apparently he is not alone though as the value has climbed 33% since the election. I had not even heard of this fantasy of a TrUmP crypto boom.