‘Divursufricashun’ And The Great Gold-For-Bitcoin Trade

This was a week to forget for market participants. It could be seen, in hindsight, as the beginning of something. What that "something" is I'm not sure, which makes this assessment inherently useless as an investment thesis. But what I do know is that if you're a retail investor who likes to think of yourself as "divursufried," you came into Friday with your SPY lower for the week, your TLT lower for the week, and your GLD lower for the week. Where does that leave you? It leaves you sitting

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13 thoughts on “‘Divursufricashun’ And The Great Gold-For-Bitcoin Trade

  1. The most interesting thing from a quick internet search.

    “There’s likely a 5-10 years window for Bitcoin to strengthen its security measures so that it can survive hackers armed with quantum computers.”

    “IBM promises 1000-qubit quantum computer—a milestone—by 2023. For 20 years scientists and engineers have been saying that “someday” they’ll build a full-fledged quantum computer able to perform useful calculations that would overwhelm any conventional supercomputer”

    1. Yes I have. I’ve explained that dozens of times. Just because you refuse to acknowledge it, doesn’t make it so.

      This becomes a bit silly past a certain point. After every article, someone insists on an explanation. I provide a link to a previous article, and then that’s not good enough either. It’s never good enough when it comes to Bitcoin.

      Past a certain point, folks are essentially just demanding recaps of past articles. I oblige, but it never matters. Which is characteristic of cult “assets,” by the way.

      You’re a regular reader. I’m reasonably sure you’ve read those other articles. Plus, there’s a “search” feature on this site. Just type in “Bitcoin.”

      Given that, I think I’m entirely justified in characterizing this comment of yours as a bit disingenuous.

      I write, you read, and then if you want to keep insisting that I didn’t write, I suppose that’s your prerogative, but I’m not sure it’s very constructive.

      1. As you say, I am a regular reader (well, in recent months, not going back years) and it was an honest question but I’ll check your Bitcoin articles again.

        My general impression was that you were dismissive of Gold as well. Which was fine, a coherent view of assets that don’t generate cash flows and thus their value being “whatever someone is willing to pay for it”.

        The fact that you own gold in your portfolio, otoh, was new info and does seem a bit contradictory with your (apparent?/my understanding) disdain for BTC, that’s all.

        I’ll scan the articles for Bitcoin and gold, see what I missed. Till then…

        1. To the reader: I, too, have taken away that the host of this richly wonderful site belittles gold, sometimes with a derision that others might reserve for when talking about a relative they can’t stand to see. Perhaps I have just mistaken the rich veins of sarcasm toward gold for what instead the author considers an obvious component in any well-diversified portfolio.

  2. Sign of a top?

    This morning I was treated to a discussion of Bitcoin on the radio. No, not Bloomberg radio. It was on WEEI, a regional sports station.

    It pushed aside the relentless musings over how the Pats should fill their quarterback void, so not all bad.

  3. A quick internet search of Bitcoin acknowledges that it could drop to Zero relative to currency. Gold has industrial and decorative value. Implausible that gold drops to zero.
    If to prove a quantum computers worth by un-encryption of crypto and making public every bit of it without thievery it would be a case of fluid intellectual property showing mastery of finite intellectual property. And one hell of a sales pitch.

    Bitcoin is nothing more than a piece of finite intellectual property that investors give value to.

    1. If Gold has to reply on its industrial value, its worth won’t be very different from zero. Check the size of the industrial demand vs. production/reserves.

      The decorative value is, quite a bit, linked to its store of value role. Yes, humans like shiny rocks but jewelry could proceed without gold and will proceed without it if it loses value. No woman or hip hop rappers is going to parade with a chain of a metal worth zilch.

      Just as you won’t impress anyone with semi precious stones right now but a diamond or a ruby will do the trick.

  4. Just for the record… I dabble in gold. But, without exception, the investment is in miners, not in doorstops. At he current price for gold most miners producing gold are making money. A lot of money if the gold deposit is rich enough. A new miner coming on line with a producing mill is usually pretty cheap and the price works it’s way up as the gold production increases, And, without exception, at the end of the year, they publish their yearly production results and they all show that the sales line up pretty closely with production. Somebody is buying all the gold they are producing. There is a market for gold. If people stop buying gold the price will drop, the mines will stop producing it and I’ll look a bit more at silver, uranium, chromium etc. I don’t believe in cryptos and don’t touch them. So far, I’m satisfied with the money I’m making on gold.

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