Goldtent TA Paradise

Bitty

1. pedro_deleon says:

   January 13, 2024 - 12:29 pm at 12:29 pm

   Samantha LaDuc
   @SamanthaLaDuc
   Serious question:

   Why is Bitcoin “squirreled away & doesn’t trade”?

   A CURRENCY is by definition a means of exchange, and that is in active circulation.

   A COMMODITY is by definition a raw material that can be bought and sold, and that is in active circulation.

   An ASSET is by definition a useful or valuable thing, that can be bought and sold, with circulation dependent on whether it is liquid or illiquid.

   And all of the above can be either popular or rare, in a state of supply-demand balance, but the quantity/quality of TRANSACTIONS determines its relative value.

   Bitcoin is unique.

   Since Bitcoin is most certainly not a currency nor commodity nor asset enabling TRANSACTIONS, it is therefore an illiquid asset that has no utility or value beyond speculation that it will be a liquid asset someday in the future, or a plaything for those who manipulate the emotions of those who believe it will be.

   So what is needing to happen exactly for Bitcoin to have real intrinsic value? To make it useful. To conduct transactions with it. Tell me! I’m really curious!

   But until then, why hoard bitcoin if the premium that is baked into its price reflects this future utopian world of a utility product in circulation as means of exchange to serve as replacement to currently-deemed inferior currencies and commodities?

   Another words: given the scarcity of actual value now, why hoard a future depreciating, illiquid asset that serves no purpose other than speculation on price appreciation from extrinsically assigned value?

   Trading it (and it’s highly levered proxies) makes a lot of sense to me – in both directions ! ! Even holding it until just before the mania ends, I can understand!

   [We choose mania over boredom every time, after all.]

   But squirreling bitcoin away in hopes it will be there when you need it – and hasn’t gone missing or turned rotten – I don’t get.

   • Kestrel says:

     January 13, 2024 - 12:35 pm at 12:35 pm

     excellent point …
     and its dependent on the internet…

2. pedro_deleon says:

   January 13, 2024 - 12:29 pm at 12:29 pm

   Dr_Gingerballs
   @Dr_Gingerballs
   now that $BTC is plummeting, this is a great time to review exactly how much wall street has F***ed the Bitcoin diamond handers. Just look at the ETF $XRT, which is routinely 2-10x short the float. How can something be short 10x without counterfeiting?

   The mechanics of the wall street underbelly are designed, above all else, to facilitate counterfeiting. The reasoning is to handle long lags in settlement, to increase liquidity for market makers, and to allow for large institutions to dump their bags on retail without price slippage, but at the end of the day it opens up significant opportunities to counterfeit. Crypto exchanges probably do this as well, but no one has perfected it quite like the DTCC on Wall Street.

   They built a settlement pipeline, called Continuous Net Settlement (CNS), that nets buys and sells between broker-dealers in a first in, first out fashion. This pipeline can be quite long, as much as 35 calendar days in some cases, meaning it is theoretically possible to counterfeit something to roughly 35x average daily volume, FOREVER. They do this by pairing new longs with old shorts in a rolling fashion, so the counterfeits never pop out the other end of the pipeline but are nevertheless always present. This is why $XRT can stay so unbelievably short all the time.

   Given this level of potential to counterfeit, if a few big players on wall street decide to take massive short positions in excess of daily average volume, it can easily cut the price in half or more. Just operating the ETFs could drive the price of $BTC below $10k simply because there are now more $BTC in existence.

   Congrats, crypto bois, you played yourselves.

   Love,

   The DTCC

3. KenS says:

   January 13, 2024 - 12:54 pm at 12:54 pm

   Digital Tulip Mania.