Thursday, May 20, 2021

Rectification: BTC and Gold Aren't Volatile

The price is volatile, yes. Not because of the asset. The assets are almost perfectly stable. Moron investors are volatile. 

Gold and BTC are shiny.

They crash when they're portrayed as all that glitters.

For example BTC had a bunch of moron money in it, then ncov happened and all the morons pulled out. Then Musk happened and it was shiny for a bit, then he pulled out and all the morons jumped with him because their strategy isn't any more profound than [follow Musk]. Real BTC price swings would depend on supply and demand for capital, not weird social nonsense. E.g. imagine a bunch of construction was legalized and demand for capital spiked to fund the building.

Hey, maybe I could one day live in a society where morons who can literally be convinced by [it's shiny] don't have significant amounts of money? Where did they get it? Why hasn't the fool already been parted?


Alrenous said...

I kind of already know. Being smart is illegal.

Pension funds cannot legally invest in everything. While P/E might not always be the best way to add up a market cap, there always exists some stable market cap for the stuff pensions are allowed to invest in. Total pension funds > total legal-investment market cap.

The excess money has to be stupid.

When pension funds drive stock bubbles, less restricted investors move into, for example, currencies. This means the extra slosh in pensions also spills into all financial markets. Stupid money for everybody.

Lots of stupid money which inside investors and other parasites love having around.

BSRK Aditya said...

Yes.. I'm convinced. It's a futile act of defiance to try to create a "safe" asset-liability.