Direct Laryngoscopy

Account on Hold
15+ Year Member
Mar 26, 2003
828
153
NYC
Status (Visible)
  1. Attending Physician
We waste enough energy using blockchain for crypto to run a country. It is ridiculous.

If you decide to go down the bitcoin rabbit hole you learn that bitcoin is using waste energy in the form of methane (that would be otherwise let into the atmosphere) from oil flaring is being used to mine bitcoin. It’s early technology but it’s being applied today. Wait till nation states get wind of this.

Remember energy is neither created or destroyed

If you’re interested here’s a link

Natural gas venting: How Bitcoin solved a 160 year old problem
 
  • Haha
Reactions: 1 user

AdmiralChz

10+ Year Member
Sep 8, 2008
3,785
3,735
Mid-Atlantic
Status (Visible)
  1. Attending Physician
I was grabbing some lunch yesterday, and the BBQ place interestingly had an option to pay “using Bitcoin.”

I asked the cashier if anyone used it. She laughed and said “no and it doesn’t even work anyway.” Guy behind me in line launched into a long diatribe about failed Bitcoin stuff in 2018, blockchain, etc... moral of the story was not to go there. I grabbed my BBQ payed with beautiful green cash and ran.
 
  • Like
Reactions: 1 user
About the Ads

Direct Laryngoscopy

Account on Hold
15+ Year Member
Mar 26, 2003
828
153
NYC
Status (Visible)
  1. Attending Physician
I was grabbing some lunch yesterday, and the BBQ place interestingly had an option to pay “using Bitcoin.”

I asked the cashier if anyone used it. She laughed and said “no and it doesn’t even work anyway.” Guy behind me in line launched into a long diatribe about failed Bitcoin stuff in 2018, blockchain, etc... moral of the story was not to go there. I grabbed my BBQ payed with beautiful green cash and ran.

Wait till the Bitcoin second layer (Lightning network) is fully built out. Jack Dorsey (Twitter, Cashapp) is working on square crypto for the lightning network. Cheap Instant payments will be a game changer.
 

vector2

It's not what you know, it's what you can prove.
10+ Year Member
Dec 26, 2006
5,152
9,743
Status (Visible)
  1. Attending Physician
What “hard assets” are you referring to? The Gold and Silver market has been manipulated for over a decade via the futures market. The cracks in the paper vs physical delivery was exposed earlier this year. Every market is manipulated. The equities market has been manipulated by all this money printing. DJI could to all time highs because the purchasing power of USD is decreasing. We could also deflationary forces play out if the fed stops money printing. But yesterday Jay Powell said money printer will be on full blast for at least the next 5 years (really 15 years but who’s counting).

Of course at this point bitcoin can be manipulated. With a total market cap of 200 billion it can be swayed by whales. But it’s absolute scarcity is being realized by corps, and they’re starting to move to adopt bitcoin because, the tangible value of most equities and commodities (remember negative oil futures a few months back) has been distorted and disconnected from any reality. The amount of Bitcoin I possess could never be manipulated since it’s based on a total supply that’s written into the code (which is open source). I expect a full on war by governments this decade in the form of bans and seizure from exchanges (remember executive order 6102). But with self custody (literally holding your net worth in bitcoin in your brain) seizure is impossible.

I think you’re underestimating what’s happening around the world with currency failure and economies crashing. I would expect the US to fight bitcoin the most since as the world reserve currency (I think a monetary reset is on the horizon, so that could change) they have the most to lose. But you think a nation whose currency has failed repeatedly is not gonna stop and consider making their nation crypto friendly and attract new wealth and talent? And physical intimidation via war won’t happen. Look what’s going on in our country. We’re the world leader and we can’t even keep our affairs in order. How we gonna invade another?

We are going through a secular shift in the way we live life and conduct business. We’ve been in the Information Age from the 1990s via the dawn of the internet. I see this as the next iteration which is the digital age. So far this year work has been digitized, education, healthcare, government and law, the money is coming faster than you think. And once that happens (all cash ban) say goodbye privacy.

I’m not telling anyone what to do here. But look around and see what’s going on. Bitcoin is different because it flips everything you understand about how the economy and money works and makes you make fundamental questions on how and why things happen the way they do. I would hope everyone here would do so. Thanks for the engagement

The US govt doesn’t have to confiscate your bitcoin. An executive branch, Congress, and SCOTUS who eventually find crypto enough of a threat will just use the commerce clause to make using crypto as money illegal for interstate commerce, and then the Fed and its reserve banks will pressure states who refuse to follow suit wrt intrastate commerce
 
  • Like
Reactions: 1 users

Direct Laryngoscopy

Account on Hold
15+ Year Member
Mar 26, 2003
828
153
NYC
Status (Visible)
  1. Attending Physician
The US govt doesn’t have to confiscate your bitcoin. An executive branch, Congress, and SCOTUS who eventually find crypto enough of a threat will just use the commerce clause to make using crypto as money illegal for interstate commerce, and then the Fed and its reserve banks will pressure states who refuse to follow suit wrt intrastate commerce

And what will the US govt do when nation states adopt bitcoin one by one. Go to war with them? Won’t happen. That’s why I believe ( I hope I’m wrong) the US will be one of the last nations to integrate bitcoin. The US as the world reserve currency will hinder adoption as they spend all they’re energy trying to maintain that status. The gift and the curse.
 

pgg

Laugh at me, will they?
Administrator
Volunteer Staff
15+ Year Member
Dec 15, 2005
13,384
12,872
Home again
Status (Visible)
  1. Attending Physician
And what will the US govt do when nation states adopt bitcoin one by one. Go to war with them? Won’t happen. That’s why I believe ( I hope I’m wrong) the US will be one of the last nations to integrate bitcoin. The US as the world reserve currency will hinder adoption as they spend all they’re energy trying to maintain that status. The gift and the curse.
Why do you think other nation states will prefer a currency they can't control and manipulate (bitcoin) over a currency they can't control and manipulate (dollars or Euro or gold doubloons?

Well, to be fair, I guess bitcoin IS heavily controlled and manipulated. I suppose it's plausible to think a corrupt nation state might prefer bitcoin for the potential to play games with it.
 
  • Like
Reactions: 1 user

Direct Laryngoscopy

Account on Hold
15+ Year Member
Mar 26, 2003
828
153
NYC
Status (Visible)
  1. Attending Physician
All markets are heavily manipulated. You think the S&P rise from March was natural buying. Crypto markets are the closest thing we have to free markets (24/7 trading, no circuit breakers, no extra bitcoin printing). This is an early experiment and as we experience more distribution via accumulation and mining bitcoin will have a better dispersion.

I can think of quite a few nations that have had currency collapse that would consider adopting a currency that yes, they don’t have control of monetary policy, but is at least programmatic, instead of trying to keep up with the monetary policy of the world reserve currency. Argentina, Lebanon, Zimbabwe, Cyprus, Greece come to mind. You think Italy and Spain (and the Euro in general) are not fracturing with the economic collapse they’re going through won’t have them considering other options (I think the Euro won’t be around in 5-10 years)?

Imma nerd and I study economics, geo politics and the markets in general so my thoughts might be different than most here, but I would challenge you to study the monetary policy of Bitcoin and compare it to the Sh*tShow we’re witnessing with the treasury and federal reserve. They used to have a mandate of maximum employment and a target inflation. Now they’re expanding their balance (will reach approx 10 trillion soon) and running the economy hot. Deflation secondary technology (read “price of tomorrow”) has them moving the goal post at the expense of the 99.5%. My peaceful protest involves accumulating and self custody my BTC (and I run a node with a raspberry pi). I’m also working on a small project that solves a problem that I see in the future (I’ll update once it’s rolled out, and it’s not another crypto. Lol). I just want peeps here to challenge and question the status quo and not accept the that we’re being fed.
 
  • Like
Reactions: 1 users

We'llBeDoneIn15Minutes

"10 Percent for the Big Guy!"
Jun 7, 2019
398
401
Status (Visible)
  1. Attending Physician
On a similar note, each time our government takes on the debt obligations of a major organization (business, municipality, etc), that balance sheet expansion will place greater inflationary pressure on our currency, effectively allowing the citizens to quietly and unknowingly pay for those poorly run entities. How many states/cities have their fiscal house in order? What other solution can you predict? I see only one inevitable outcome.
Absolutely inevitable. Fiat currency inflation is nothing but theft of its value. It's not a stimulus and certainly isn't a panacea.
 
  • Like
Reactions: 1 users

We'llBeDoneIn15Minutes

"10 Percent for the Big Guy!"
Jun 7, 2019
398
401
Status (Visible)
  1. Attending Physician
But we don’t use gold as currency we use dollars which aren’t even linked to the value/scarcity of any precious metals. Dollars can be as scare or abundant as monetary policy dictates.
Monetary policy can never make dollars scarce again. The mountains of debt at all levels mathematically require the printing press run 24/7. Welcome to QE Infinity.
 
  • Like
Reactions: 1 users
About the Ads

We'llBeDoneIn15Minutes

"10 Percent for the Big Guy!"
Jun 7, 2019
398
401
Status (Visible)
  1. Attending Physician
Aside The occasional hiccup, the overall trend will continue toward weaker dollars. Our deficits require an ever weakening dollar to service our debt and weak dollars help stimulate GDP/international exports. Ask yourself, aside from talking points, why any politician would want a strong dollar. Draw your own conclusions, but I see a society that has gone from production to consumption and, as a result, will consume whatever value remains in its currency into oblivion. I wouldn’t wanna be holding dolllar denominated assets with long maturities.
For the life of me I can't understand anyone buying government bonds as a long term hold with such ridiculously low interest rates.
 

We'llBeDoneIn15Minutes

"10 Percent for the Big Guy!"
Jun 7, 2019
398
401
Status (Visible)
  1. Attending Physician
What “hard assets” are you referring to? The Gold and Silver market has been manipulated for over a decade via the futures market. The cracks in the paper vs physical delivery was exposed earlier this year. Every market is manipulated. The equities market has been manipulated by all this money printing. DJI could to all time highs because the purchasing power of USD is decreasing. We could also deflationary forces play out if the fed stops money printing. But yesterday Jay Powell said money printer will be on full blast for at least the next 5 years (really 15 years but who’s counting).

Of course at this point bitcoin can be manipulated. With a total market cap of 200 billion it can be swayed by whales. But it’s absolute scarcity is being realized by corps, and they’re starting to move to adopt bitcoin because, the tangible value of most equities and commodities (remember negative oil futures a few months back) has been distorted and disconnected from any reality. The amount of Bitcoin I possess could never be manipulated since it’s based on a total supply that’s written into the code (which is open source). I expect a full on war by governments this decade in the form of bans and seizure from exchanges (remember executive order 6102). But with self custody (literally holding your net worth in bitcoin in your brain) seizure is impossible.

I think you’re underestimating what’s happening around the world with currency failure and economies crashing. I would expect the US to fight bitcoin the most since as the world reserve currency (I think a monetary reset is on the horizon, so that could change) they have the most to lose. But you think a nation whose currency has failed repeatedly is not gonna stop and consider making their nation crypto friendly and attract new wealth and talent? And physical intimidation via war won’t happen. Look what’s going on in our country. We’re the world leader and we can’t even keep our affairs in order. How we gonna invade another?

We are going through a secular shift in the way we live life and conduct business. We’ve been in the Information Age from the 1990s via the dawn of the internet. I see this as the next iteration which is the digital age. So far this year work has been digitized, education, healthcare, government and law, the money is coming faster than you think. And once that happens (all cash ban) say goodbye privacy.

I’m not telling anyone what to do here. But look around and see what’s going on. Bitcoin is different because it flips everything you understand about how the economy and money works and makes you make fundamental questions on how and why things happen the way they do. I would hope everyone here would do so. Thanks for the engagement
What's to stop 100 other and better bitcoin competitors from coming along and Bitcoin disappears relatively rapidly into the night like Wang Computers?
 
  • Like
Reactions: 1 user

We'llBeDoneIn15Minutes

"10 Percent for the Big Guy!"
Jun 7, 2019
398
401
Status (Visible)
  1. Attending Physician
So why don't you just buy up those assets and benefit, instead of gambling and speculating on bitcoin?

I mean, gambling is fun, more power to you if that's what you want to do, but if your fundamental premise is that the DJIA is going to 40,000 because the dollar will inflate, why not just buy DJIA equities or other hard assets that produce something and grow in intrinsic value?

You still haven't addressed the elephant in the room regarding crypto, that countries with their fiat currencies aren't going to quietly let some crypto coin shenanigans take over the world. It's a complete fantasy to think that significant - if not punitive - regulation will come to pass and affect every cryptowhatever holder living in any country that's a desirable place to exist.

You crypto guys are like Napster users who thought their unregulated decentralized free exchange was going to last, and their only opponent of note were some sleazy record company execs.
Hey hey, easy on Napster users. I made some great workout CDs off of there (assuming statute of limitations has expired...)
 
  • Like
Reactions: 1 user

dr doze

To be able to forget means to sanity
10+ Year Member
Dec 6, 2006
4,612
3,963
Status (Visible)
  1. Attending Physician
For the life of me I can't understand anyone buying government bonds as a long term hold with such ridiculously low interest rates.

Insurance companies that have fixed specific long term obligations that can be covered by Long Term Treasurys. I own lots of short term Treasury’s, (Mostly T-bills and intermediate TIPs) more than ever in fact.
 

Direct Laryngoscopy

Account on Hold
15+ Year Member
Mar 26, 2003
828
153
NYC
Status (Visible)
  1. Attending Physician
What's to stop 100 other and better bitcoin competitors from coming along and Bitcoin disappears relatively rapidly into the night like Wang Computers?

For 1 Lindy effect. And security. It’s open source, scarce. I think we see a Pareto distribution and not a winner take all. Not all cryptocurrencies are money. A lot are utility tokens (think Chuckie cheese tokens), scams and not open source. I only hold 2 that aim to be a store of value (and possibly a medium of exchange in the future). I started using bitcoin for online goods and services in 2014. Still very early but things are evolving at a breakneck speed.
 

Direct Laryngoscopy

Account on Hold
15+ Year Member
Mar 26, 2003
828
153
NYC
Status (Visible)
  1. Attending Physician
I'd rather own gold. Bitcoin is literally backed by nothing.

Bitcoin is more scarce than gold and verifiable on the blockchain. Run a node and verify not only your transactions, but every transaction every completed. Gold is heavy, need storage facilities and takes time and effort ($$$) to verify. You know 80 tons of fake gold was found in China a couple of months ago?
 

We'llBeDoneIn15Minutes

"10 Percent for the Big Guy!"
Jun 7, 2019
398
401
Status (Visible)
  1. Attending Physician
Bitcoin is more scarce than gold and verifiable on the blockchain. Run a node and verify not only your transactions, but every transaction every completed. Gold is heavy, need storage facilities and takes time and effort ($$$) to verify. You know 80 tons of fake gold was found in China a couple of months ago?
Finding a way to create gold would certainly make its value evaporate. I think we're a long way from that. I don't find gold an ideal store of value. Non-perishable food, water, guns all appear more likely to hold value more reliably, but clearly have huge storage issues compared to gold. I'm not sure what physical asset is the ideal store of value.
 
  • Like
Reactions: 1 user

We'llBeDoneIn15Minutes

"10 Percent for the Big Guy!"
Jun 7, 2019
398
401
Status (Visible)
  1. Attending Physician
For 1 Lindy effect. And security. It’s open source, scarce. I think we see a Pareto distribution and not a winner take all. Not all cryptocurrencies are money. A lot are utility tokens (think Chuckie cheese tokens), scams and not open source. I only hold 2 that aim to be a store of value (and possibly a medium of exchange in the future). I started using bitcoin for online goods and services in 2014. Still very early but things are evolving at a breakneck speed.
I know what I know (inflation, debt, economy etc) and have an in-check ego to not passionately argue things I don't really know. You clearly can run laps around me regarding bitcoin. I only have an educated feel for my skepticism, but can't debate specifics with you. But that's ok, too many people invest in stuff they really have no idea what or why they are buying. I will pass and watch from the sidelines. No matter what happens it's a fascinating story.
 
  • Like
Reactions: 3 users
About the Ads

SaltyDog

West Coast Anesthesiology Ninja
10+ Year Member
Aug 10, 2007
5,204
11,257
The Bight
Status (Visible)
  1. Attending Physician
I know what I know (inflation, debt, economy etc) and have an in-check ego to not passionately argue things I don't really know. You clearly can run laps around me regarding bitcoin. I only have an educated feel for my skepticism, but can't debate specifics with you. But that's ok, too many people invest in stuff they really have no idea what or why they are buying. I will pass and watch from the sidelines. No matter what happens it's a fascinating story.

This sort of polite, reasonable response has no place on SDN. GTFOH.
 
  • Like
  • Haha
Reactions: 11 users

Direct Laryngoscopy

Account on Hold
15+ Year Member
Mar 26, 2003
828
153
NYC
Status (Visible)
  1. Attending Physician
How bitcoin met the real world in Africa

With a median age of 19, digitally native gen Z are adopting cryptocurrencies for trade and commerce on a P2P and B2B level (especially against the backdrop of collapsing fiat currencies). I think we see businesses follow the micro strategy model and store reserve assets in bitcoin and other crypto.
 
  • Like
Reactions: 1 user

Direct Laryngoscopy

Account on Hold
15+ Year Member
Mar 26, 2003
828
153
NYC
Status (Visible)
  1. Attending Physician

He’s basically doubling down. I think this is the first bitcoin ETF (or maybe a BTC hedge fund). No personal exposure, but you can purchase $MSTR stock and ride the BTC wave.
 

Direct Laryngoscopy

Account on Hold
15+ Year Member
Mar 26, 2003
828
153
NYC
Status (Visible)
  1. Attending Physician
Kraken Wins Bank Charter Approval | Kraken Blog

The 1st crypto bank in the US was approved today. Wyoming has put in place the framework for non-fractional banking (no rehypothecation) and fully audited banking. This is pretty amazing and I think other states will follow and we could be on the heels of a systemic shift in responsible banking and possible crypto custodian solution in the future (for those that don’t want to self custody their crypto assets).

I think as we head towards a monetary reset, there will be options other than fiat banking and possible competition to the central banking policies that have failed us many times over the years. And I think the reset will include the rollout of a central bank digital currency (CBDC). Get ready.
 

Direct Laryngoscopy

Account on Hold
15+ Year Member
Mar 26, 2003
828
153
NYC
Status (Visible)
  1. Attending Physician
https://www.forbes.com/sites/micha...part-of-billion-dollar-spin-off/#1ac5e2ae9850


Three years ago, the founders of the $10 billion Stone Ridge Asset Management had a problem. Several of the advisory firm’s founders and senior employees were buying bitcoin at such a rate it became obvious the purchases needed to be looked at more closely by the firm’s auditors. As word got out that Stone Ridge’s staff was personally investing in bitcoin at such a scale the firm’s clients increasingly wanted to express the same thesis. As Stone Ridge co-founder, Robert Gutmann, put it, that thesis is a belief in “the long term growth of an open-source monetary system—in assets like bitcoin.”

The problem was, Stone Ridge needed a way to turn the dollars they wanted to invest into bitcoin, and to safely store that cryptocurrency once they had it. And since they were personally invested in bitcoin, they needed to do all that in a way that not only satisfied their clients, auditors and regulators, but themselves. So, instead of just establishing a few custom funds for their clients as they’re wont to do, Stone Ridge took the extraordinary step of building execution and custody tools from scratch and kicking off an entirely new line of revenue, executing cryptocurrency purchases, and then holding onto the assets for their customers.

By 2017, that vision had evolved into the New York Digital Investment Group (NYDIG), the first Stone Ridge subsidiary that isn’t wholly owned by the parent company. That year, the firm quietly raised $50 million in a previously unannounced investment and set about building a spinoff that served the new breed of institutional investors increasingly seeking their services. Last Friday, that work went to the next level, when NYDIG raised another $50 million growth equity fundraise led by Fintech Collective, with Bessemer Ventures, and Ribbit Capital participating, bringing the total raised to $100 million. As part of the announcement, Stone Ridge Holdings Group revealed NYDIG is custodying 10,000 of the parent company’s bitcoin, valued at $115 million at today’s price.

Behind the sudden burst of activity is none other than the Covid-19 pandemic. As businesses around the world closed up shop as part of quarantine or sought help from their governments, central banks tried to offset the drop in activity by injecting billions of dollars into their economies. While unemployment increased, markets stayed surprisingly stable, resulting in a sense of impending collapse, says Gutmann, speaking in his first interview since taking over as co-founder and CEO of NYDIG. “We've seen a pretty dramatic acceleration in the count of institutional investors who want to participate in the market since March of this year,” he says. “The macro backdrop against the public health backdrop has caused a lot of people to rethink their portfolio composition.”

Based in New York, NYDIG spent the $50 million it raised in 2017 to build out the execution and custody services they would need to manage a rafter of custom bitcoin funds, and to acquire two cryptocurrency-specific licenses. The first license, a BitLicense from the state of New York is used by the NYDIG Execution subsidiary to convert dollars into cryptocurrency and back again. Another subsidiary, NYDIG Trust has a New York State limited purpose trust charter allowing them to buy and hold bitcoin and other cryptocurrencies for investors. Few NYDIG customers are public yet, though a representative of the company says Stone Ridge’s $115 million position isn’t the largest it manages. Last month Ripple chairman Chris Larsen revealed he’d moved one of his XRP wallets to NYDIG custody.


Currently, the majority of NYDIG’s revenue comes from banks, registered investment advisors to ultra high net worth individuals and institutional allocators. These products are built on a single platform that integrates execution, custody, anti-money laundering and know your customer protection. Specifically, NYDIG builds custom funds, separately managed accounts (SMAs) for middle-income investors, and other services for ultra high net worth individuals. “Different institutional allocators are used to buying fund management services, so that's what we sell them,” says Gutmann. “Macro hedge funds are used to buying prime brokerage services. So that's what we sell them. RIA's are used to buying a set of ultra high net worth advisory solutions. And that's what we sell them.”

The two largest funds currently managed by NYDIG are the $190 million Institutional Bitcoin Fund LP, disclosed in regulatory documents in June and the $140 million Bitcoin Yield Enhancement Fund LP disclosed in May. Among what Gutmann calls “several” smaller funds is the NYDIG Basket Fund totaling $2.4 million, including bitcoin, ethereum, XRP, litecoin, and bitcoin cash. While NYDIG isn’t sharing its total assets under management the firm now custodies more than $1 billion, it says, and the number of its clients has quadrupled over the past ten months.


The second revenue stream comes from integrating NYDIG’s underlying execution and custody platform into banks, foundations, and university endowments. In September, the Office of the Comptroller of the Currency (OCC), a branch of the U.S. Department of the Treasury, published a letter saying banks and other financial institutions could hold reserves for clients that issue digital tokens on a blockchain, called stablecoins, which are backed by U.S. dollars. “We're having lots of conversations with banks, about various kinds of partnerships all the way from basic sub-custody solutions,” says Gutmann, “up to end consumer products that the banks are providing, where we’re the back end”

As part of the preparation for today’s public launch Gutmann and other NYDIG and Stone Ridge executives published a lengthy analysis, in February 2019, called “Buying Bitcoin” about the difficulties money managers face when looking for significant bitcoin liquidity. The 22-page report concludes, for now, that today’s bitcoin market is dominated by retail investors and speculators. From the report: “Given that agents (fund managers, trustees, and other fiduciaries) control the vast majority of the trillions of dollars of investable assets in the world, we expect material institutional purchases of Bitcoin as these agents work their way through the challenges of this burgeoning asset class.”

Do you know someone who might qualify for next year’s Forbes Blockchain 50 list? Click here to see the criteria.

So far, the paper’s conclusion appears to be playing out. Last week payments giant Square invested about $50 million into bitcoin, or about 2.5% of its last reported cash-on-hand. Struggling business intelligence firm MicroStrategy converted a whopping $425 million of its assets into bitcoin, and at least 20 institutional investors have filed paperwork with the SEC showing they invested in the Grayscale Bitcoin Trust (GBTC). Newly launched Canadian digital asset manager 3iQ has $91.2 million in its Bitcoin Fund trading on the Toronto Stock Exchange and institutional investor, Cathie Wood, of New York-based Ark Invest told Forbes she sees bitcoin as an “insurance policy” against inflation.

To help bring NYDIG’s in-house execution tools to its clients, the company last Friday also bought New York-based Etale, which specializes in order management software and is integrated with Coinbase Pro, Gemini and itBit. Over the next few months NYDIG plans to further integrate its own in-house execution tools with Etale, making them available to clients for the first time. As part of the deal, NYDIG also obtains a data set including high frequency price, quote and depth data to further refine its own offerings. The firms are not sharing terms of purchase, but all four employees will be joining NYDIG.

See behind the scenes by registering for the Forbes CryptoAsset & Blockchain Advisor.

Further demonstrating institutional interest in the asset class, NYDIG last month hired former Goldman Sachs partners Ronnie Wexler and Tejas Shah to help run the company. Some other notable NYDIG staffers include former New York State Superintendent of Financial Services, Ben Lawsky, former Goldman Sachs managing directors Eric Kramer and Rodney Miller and CEO and co-founder of Stone Ridge, Ross Stevens. Brooks Gibbins, managing partner of lead investor, FinTech Collective, is joining the board as part of the investment. The startup now employs a total of 35 people.

The irony of the surge of interest in bitcoin brought about by Covid-19 is the pandemic is also testing one of bitcoin’s earliest value propositions: that it’s uncorrelated with traditional markets. As traditional markets dropped, so have bitcoin, in large part. Same goes for many upwards movements. However, depending on the time one looks, Gibbins argues, correlation, or non-correlation can be found anywhere. As a result, especially in the face of such global uncertainty, the lead NYDIG investor advocates that institutions should allocate between 100 and 500 basis-points of their portfolio to digital assets. “With the unprecedented fiscal and monetary stimulus happening across the globe post Covid-19, portfolio hedging in digital assets will continue to be more and more relevant,” he says. Already, NYDIG’s typical bitcoin investor has between 1% of 5% of its portfolio invested in cryptocurrency, with a few investors more comfortable with the technology exceeding 5%. “If you’re legging into a $5 million to $500 million position in an asset, you are going to want to apply a number of different offensive and defensive capital strategies,” he says.

Follow me on Twitter or LinkedIn. Send me a secure tip.

Michael del Castillo


Dominoes are falling faster as the money printer at the Fed goes in hyper drive. Hopefully these post drive the point that I’m trying to make.
 

gasdoc77

7+ Year Member
Dec 7, 2012
364
346
Status (Visible)
  1. Attending Physician
Isn't it safe to say that this global "balance sheet expansion"(money printing) is simply a deceptive way to redistribute prosperity from developed countries to less developed ones, while simultaneously forcing the working class to produce more (gdp collectively) in order to maintain the same standard of living. If the global economic engine relies on this inflationary monetary policy, wouldn't leveraging long term fixed low interest dollar denominated debt against physical assets (land, houses, properties, real estate, etc) be the most sensible approach? Simply let inflation erode the value of the fixed debts?
 
About the Ads

pgg

Laugh at me, will they?
Administrator
Volunteer Staff
15+ Year Member
Dec 15, 2005
13,384
12,872
Home again
Status (Visible)
  1. Attending Physician
Isn't it safe to say that this global "balance sheet expansion"(money printing) is simply a deceptive way to redistribute prosperity from developed countries to less developed ones, while simultaneously forcing the working class to produce more (gdp collectively) in order to maintain the same standard of living. If the global economic engine relies on this inflationary monetary policy, wouldn't leveraging long term fixed low interest dollar denominated debt against physical assets (land, houses, properties, real estate, etc) be the most sensible approach? Simply let inflation erode the value of the fixed debts?
Sure, but real estate basically tracks inflation over the long term. If you want to come out ahead after a long period of inflation, and if you believe
1) the world will keep turning
2) economies will keep going
3) people will keep working, producing things of value
then the place for your money to be invested is in those entities which produce those goods and that real world value. Which is ...

... drum roll please ...

... the stock market.

Not currency market speculation, and definitely not this hallucinogenic idea that some flavor of state-less cryptocurrency is going to magically create wealth, even if it doesn't get crushed out of existence the instant one of those states with "fiat" currency backed by political, economic, and military power decide it's becoming inconvenient.

And if those 3 things aren't true, you still shouldn't buy cryptocurrency. You should be buying rural land, freeze dried food, and guns because we're headed for another dark age.
 
  • Like
Reactions: 1 users

dr doze

To be able to forget means to sanity
10+ Year Member
Dec 6, 2006
4,612
3,963
Status (Visible)
  1. Attending Physician
Isn't it safe to say that this global "balance sheet expansion"(money printing) is simply a deceptive way to redistribute prosperity from developed countries to less developed ones, while simultaneously forcing the working class to produce more (gdp collectively) in order to maintain the same standard of living. If the global economic engine relies on this inflationary monetary policy, wouldn't leveraging long term fixed low interest dollar denominated debt against physical assets (land, houses, properties, real estate, etc) be the most sensible approach? Simply let inflation erode the value of the fixed debts?

There has been very litttle inflation for the last two decades despite lots of money printing. Two big inflation killers are technology and demographics. But to answer your question, If I was sure that there was going to be an upsurge in inflation, borrowing money at today's low fixed rates to buy real estate and businesses (stocks) is a good strategy. Which stocks? buy the market with a tilt towards value stocks which have historically done well with inflation because they have lots of physical assets and traditionally carry more debt than growth stocks. Of course everybody knows this and this information is incorporated into current prices.
 
  • Like
Reactions: 1 users

gasdoc77

7+ Year Member
Dec 7, 2012
364
346
Status (Visible)
  1. Attending Physician
There has been very litttle inflation for the last two decades despite lots of money printing. Two big inflation killers are technology and demographics. But to answer your question, If I was sure that there was going to be an upsurge in inflation, borrowing money at today's low fixed rates to buy real estate and businesses (stocks) is a good strategy. Which stocks? buy the market with a tilt towards value stocks which have historically done well with inflation because they have lots of physical assets and traditionally carry more debt than growth stocks. Of course everybody knows this and this information is incorporated into current prices.
The reason we haven't seen may be similar to the two compartment model for propofol. We are still in the redistribution phase as the printed money slowly siphons it's way overseas visa vie our trade imbalances. The second compartment is becoming increasingly saturated and that capital is gonna be seeking returns or assets at some point, possibly returning stateside.
 

dr doze

To be able to forget means to sanity
10+ Year Member
Dec 6, 2006
4,612
3,963
Status (Visible)
  1. Attending Physician
I don't think that analogy is appropriate. Despite the massive money printing, it is not going into the economy People are cutting spending, saving more (those who have maintained their income), banks aren't lending. This is especially true of retirees and soon to be retirees.




 
  • Wow
Reactions: 1 user

DoctwoB

10+ Year Member
Jan 10, 2010
2,103
1,918
Status (Visible)
  1. Attending Physician
I don't think that analogy is appropriate. Despite the massive money printing, it is not going into the economy People are cutting spending, saving, banks aren't lending. This is especially true of retirees and soon to be retirees.





This. Most people think of the money supply as a set amount when really the rate of flow is more important. At times of slow lending and purchasing, the government could literally print and dump billions of dollars worth of bills from the sky and the money supply would decrease. Right now I see an economy with strong inflationary (monetary expansion, federal spending) and deflationary (unemployment, less spending, more saving, reduced economic output, etc) pressures. Which way will the pendulum swing? Who knows? But the belief that fed money printing means inflation is misguided.
 
  • Like
Reactions: 1 users

nimbus

Member
15+ Year Member
Jan 14, 2006
6,890
9,296
Status (Visible)
China is printing money and spending it on large infrastructure projects. Their consumers are also beginning to spend and their GDP is up 5% from last October.



“China’s model for restoring growth may be effective, but may not be appealing to other countries.
Determined to keep local transmission of the virus at or near zero, China has resorted to comprehensive cellphone tracking of its population, weekslong lockdowns of neighborhoods and cities and costly mass testing in response to even the smallest outbreaks.”



With Covid-19 Under Control, China’s Economy Surges Ahead
 

Mman

Senior Member
15+ Year Member
Mar 22, 2005
5,708
3,843
Status (Visible)
  1. Attending Physician
Why look at 1 day returns? BTC is up close to 2,000,000% over the last decade. By far the best performing asset. Unless I was day trading, I don’t care about the daily machinations in price

that is simultaneously a great argument to go back and time and buy a bunch of bitcoin in 2010 and a great reason to not be purchasing it now.

BTC is probably a fun gamble for people, they just shouldn't delude themselves into seeing it as an investment.
 
  • Like
Reactions: 4 users

dhb

Member
10+ Year Member
Jul 12, 2006
4,482
1,969
Status (Visible)
  1. Attending Physician
:laugh:
that is simultaneously a great argument to go back and time and buy a bunch of bitcoin in 2010 and a great reason to not be purchasing it now.

BTC is probably a fun gamble for people, they just shouldn't delude themselves into seeing it as an investment.
I knew you wouldn't be able to resist a comeback on this thread
 

Mman

Senior Member
15+ Year Member
Mar 22, 2005
5,708
3,843
Status (Visible)
  1. Attending Physician
:laugh:
I knew you wouldn't be able to resist a comeback on this thread

was too busy with life for several months and only periodically check from time to time, but stuff like this is just too insane. People can do whatever they want, it's just dangerous to confuse gambling with investments. The list of dumb "investments" people have talked about on here is never ending. The nice part about this forum, though, is we can bump up a 15 year old thread to point it out after the fact.
 
  • Like
Reactions: 1 user

Direct Laryngoscopy

Account on Hold
15+ Year Member
Mar 26, 2003
828
153
NYC
Status (Visible)
  1. Attending Physician


Wait till people realize with the central bank digital currencies (CBDC) on the way, we will lose all sense of privacy. Bitcoin doesn’t allow privacy but they’re cyrpto that will allow us to reclaim some privacy that’s been aggressively taken away over the last 2 decades. Cough *monero $XMR* cough
 

dr doze

To be able to forget means to sanity
10+ Year Member
Dec 6, 2006
4,612
3,963
Status (Visible)
  1. Attending Physician


Wait till people realize with the central bank digital currencies (CBDC) on the way, we will lose all sense of privacy. Bitcoin doesn’t allow privacy but they’re cyrpto that will allow us to reclaim some privacy that’s been aggressively taken away over the last 2 decades. Cough *monero $XMR* cough


"You have no privacy, get over it."

-Steve Case, Chairman and CEO of AOL.
He said that in 1999. The amount of privacy has only gone in one direction since.
 
  • Like
Reactions: 1 users

Direct Laryngoscopy

Account on Hold
15+ Year Member
Mar 26, 2003
828
153
NYC
Status (Visible)
  1. Attending Physician
Iran Changes Law to Use Bitcoin For Imports

Central Banks now getting into the game. As I’ve stated before I thought the nations with “nothing to lose” would be first to adopt Bitcoin. And bombing or executing (cough *Gaddafi* cough) to oblivion won’t work because bitcoin is on a global public blockchain and is a digital bearer asset.

We’re heading to a revolutionary where potentially the moneytary polices won’t be managed by a few but a a protocol for everyone to see and abide by. The central banks through money manipulation (money printing hyperdrive) have increased the wealth inequality and we’re in the state we are currently. I don’t know if long term bitcoin is the final answer, but it sure leads to a more open system that allows for public audits and more fiscal responsibility. Something to think.....
 
  • Like
Reactions: 1 user

Direct Laryngoscopy

Account on Hold
15+ Year Member
Mar 26, 2003
828
153
NYC
Status (Visible)
  1. Attending Physician

Your message may be considered spam for the following reasons:

  1. Your new thread title is very short, and likely is unhelpful.
  2. Your reply is very short and likely does not add anything to the thread.
  3. Your reply is very long and likely does not add anything to the thread.
  4. It is very likely that it does not need any further discussion and thus bumping it serves no purpose.
  5. Your message is mostly quotes or spoilers.
  6. Your reply has occurred very quickly after a previous reply and likely does not add anything to the thread.
  7. This thread is locked.
About the Ads