The derivatives market is just insane when you really look at it. The value of the worlds real estate is actually much eclipsed by the derivatives sold on it. What's wrong with that picture?
We are starting to see things go horribly sideways in Miami. Insurance companies are starting to refuse to insure waterfront property. Means it can't be sold, or at least not sold at anywhere near the market. Will they end up like New Orleans with a system of dikes and pumps? Who knows? But rumor and innuendo is starting to drive that market which means it's really fragile.
Ownership is almost a weird concept today. You don't even own your mortgage let alone your property. That's a pretty scary situation. Is crypto the ultimate hedge for individuals? I think there's a large possibility.
The only market I have really drilled into (30 years ago) was Chicago Board of Trade commodities. I was growing a commodity and wanted to share the risk. I'm not certain that I ever actually did that all these years later.
The imaginary is far more valuable than reality.
I think that there are a couple things in favor of crypto at the moment, one being the conversation of getting money securely to where it needs to go. Something that the US has been struggling with in the current crises. Put everyone on a blockchain with tokens and that payment becomes very easy - that teaches people how to use tokenized blockchains. Might be some way off for mass adoption, but the use case potential that would spiral from there is enormous.
I do think that people will increasingly start hedging with crypto - some companies are already doing it. I heard of one in the states that converted 250M into BTC a few weeks ago - that isn't done on an exchange, that is OTC too - where most of the BTC trades are already done.
I don't understand all of these financial instruments - which is the point of them I guess.
Yep. Financial instruments are part of the mushroom theory. Keep them in the dark and feed them bullshit.
I first heard of BTC quite a few years ago. I had a couple of friends that were transporting pre-Columbian artifacts out of South America for fun and profit. The government had put so much emphasis on stopping the cocaine trade that they let up on the antiquities trade for a couple of years.
My friend called BTC 'smuggler money'. Put USD in without any viable transaction and take it out as needed locally. So they never crossed any borders with cash. I wonder if they ended up with any sub $100 BTC? I'd guess yes.
What is interesting is that while people ocus on tech innovation, the most value adding innovation by far, has been in the financial sector - where very few can play.
The real question is - did they hold? :D
I lost track of them. Did they go to jail? Dead? Just time to move on? I could imagine a scenario for any of those options. I'll bet if they got jail they held :)
Wouldn't be a bad saving scheme - buy bitcoin early - go to jail til moon.
!ENGAGE 20
ENGAGEtokens.