April 17, 2021

About bitcoin

No matter how skeptical we are about bitcoin and other digital currencies, they are gradually from toys to geeks and those who do not want to be in the "matrix" are becoming part of the global financial system.
This is especially true of Bitcoin, whichclaims to be an analogue of gold, only in the digital world. This analogy is not accidental, since there are many similarities between these two assets - both are limited in their volume, both must be extracted and spent on money and energy, both do not deteriorate. And even the physical nature of gold is not an advantage, since you cannot eat it, and jewelry made from it is only a small fraction of consumption. But bitcoin can be transferred to another person anywhere in the world in minutes.
You say it's just a dummy, translationenergy, video cards and servers, for which people are paying huge sums of money, and when everyone realizes this, then nothing will remain? However, the main phenomenon of the value of both gold and bitcoin lies in the massive recognition of them as an equivalent of value, which does not depend on any central bank, and there are no such alchemists who will turn lead into gold and the dollar into bitcoin.

Cryptocurrency mining generates income for the power industryand, as a result, coal, nuclear and other industries; manufacturers of computer components, exchanges, exchangers, etc. earn. And the more bitcoins are used for payments for ordinary goods, the greater the recognition. And this means that investors will start buying this digital currency, along with food, raw materials and other goods, when the wave of inflation begins to overwhelm conventional (fiat) world currencies.

Here are the first bells:

  • Visa plans to connect the ability to pay for goods in bitcoins through its payment system
  • Tesla is ready to sell its cars for bitcoins and itself invested 1.5 billion dollars in them
  • The first Bitcoin ETF appeared as an easy way to benefit from the growth of this cryptocurrency through familiar securities
  • Morgan Stanley and other investment banks form private bitcoin funds for clients
  • The more people use Bitcoin andits price will rise, the price fluctuations for it will be less, and it will turn into the same archaic class of assets as gold.For me, as a person who is professionally engaged in securities management, this is a reason to allocate a small amount that is not it is a pity to lose (for example, no more than 1% of savings, as recommended by Morgan Stanley), and to understand firsthand how this market works.