Graebers 'Debt: The First 5000 years' really helped me understand money. Lyn Alden and her merry circle has greatly helped me the current economic environment. Jeff Snider has given me a much better understanding of global/macro economics. Bitcoin essentially fell in place. There have been many Bitcoin narratives propagated by Bitcoin Maxis that have largely been inaccurate and IMO have really hurt the cause.
Most addresses holding bitcoin (BTC), the largest cryptocurrency, are now in the red, the first time that's happened since the start of the coronavirus-induced crash of March 2020. Just over 51%, or 24.6 million addresses of the total 47.9 million, are below purchase price on their investments, according to data provided by blockchain analytics firm IntoTheBlock. About 45% are in the money, which means they are boasting unrealized gains, while the rest are roughly at break-even https://www.coindesk.com/markets/2022/11/21/more-than-50-of-bitcoin-addresses-are-now-in-loss/
Death spiral status if Saylor (13k margin call on some loans) and GBTC (lower discount, no proof of reserve) goes splat. Oh right, Mt Gox settlement and that FBI Silk Road money...
For disclosure, I'm not a skeptic. More a degen speculator who reacts off what the current narrative is. BTC looks like a nice hedge for the dollar, but it's currently acting like every other currency out there. I'm not sure how folks can explain that other than it being held up by "dumb and smart" tradfi money.
For GBTC, is it "not your keys, not your coin", or... "not my coin, not my keys, but I know a guy that says I have'm" https://finance.yahoo.com/news/coinbase-custody-holds-635-000-152904175.html Coinbase Custody Trust, the institutional investment arm of Coinbase Global, holds 635,000 BTC on behalf of Grayscale Bitcoin Trust, according to a note by Coinbase Custody CEO Aaron Schnarch. Digital investment firm Grayscale has also declined to share proof of reserves, citing security concerns. Fast facts Coinbase Custody also holds over three million ETH for Grayscale Ethereum Trust, and 11.9 million ETC on behalf of Grayscale Ethereum Classic Trust, as of Sept. 30, according to the note that came as investors are increasingly concerned about the potential contagion of FTX’s collapse. Grayscale shared the note from Coinbase Custody as “investors are understandably inquiring deeper into their crypto investments” due to recent events, according to Grayscale’s tweet, which highlighted the safety and security practices of the company’s digital asset products. The digital investment giant wrote that “Coinbase frequently performs on-chain validation,” but will not release a cryptographic proof-of-reserve due to “security concerns.” “We know the preceding point, in particular, will be a disappointment to some,” wrote Grayscale but added that investor panic was no reason to “circumvent complex security arrangements that have kept our investors’ assets safe for years.” Grayscale’s digital asset products are set up as separate legal entities, which “prohibit the digital assets underlying the products from being lent, borrowed, or otherwise encumbered.”
I don't think people understand just how significant Bitcoin is for the greenification of our power grid. Energy is valuable, but if it can't be stored or transported easily, it loses value quickly. This is the renewable dilemma. That high sudden throughput of solar, wind, or hydro energy just goes to waste if it isn't immediately leveraged by a consumer and the producer of said energy is left with 0 value for their effort. Insert Bitcoin. Now you have 24/7/365 incentive to create/leverage renewable energy. That wasted throughput that would have resulted in 0 dollars for the producer before can now be used for Bitcoin instead. This forms a race to the top for energy producers to create as many renewable energy sources as possible.
If I'm understanding you correctly.... Mining would be done on "excess" energy generation. If there isn't a legal requirement to restrict usage above excess generation, mining is a negative (higher cost, more strain on the power grid). That's an interesting concept. I think the renewable sector would be totally on board if the excess is only from renewable and not "dirty" sources. This means very specific and focused regulation toward one industry - mining. Kind of a weird model but seem to be workable until storage technology is here. At that time, it might be a negative pull. I like it.
Right now people only mine BTC using 'dirty' fuel because it is cheaper for them (or in some cases their only option). However, what my post above is trying to explain is that BTC incentivizes green energy creation thereby reducing its cost. Fossil fuels have always had the leg up on green energy because they store and transport better. Now that's irrelevant because renewable energy has Bitcoin as a buyer of last resort. This is why whenever BTC started exploding you saw green energy production ramp up all over the world (an important factor increasing green energy availability), because if I can turn a free, boundless energy source (wind, solar, etc) into lots of money (BTC) I am damn sure going to do so. This is the positive feedback loop/race to the top BTC creates for renewables.
I'm not sure the economics will play out this way. The downtime of using an unreliable energy source like wind/solar might outweigh the benefit of it being a "free" source of energy.
It all depends on the price of bitcoin. If bitcoin has no adoption and the price remains low, that reduces the incentive to produce renewable energy.
hodling is simple, but incredibly difficult few have the mental fortitude to not capitulate (and to continue accumulating) in the red years but if you can do it, you will outperform everything else
Everyone likes to say the hard part is selling when you're up. In reality it's holding when you're dead. This is why paper trading is a waste of time IMO.
This. Paper trading is good to learn the platform you're trading on, and that's about it. It definitely doesn't teach you emotions.
