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Cullen, what if Bitcoin maximalists are right?

Cullen, thank you for clarifying when you will consider buying Bitcoin.

So you are constructing boring savings portfolios with steady returns.

But what if in the not so distant future, stocks and bonds, no matter how you permutate them, cannot generate the returns profile that you are looking for?

This is the fundamental basis for Bitcoin maximalism.

The reason why you do not understand why so many people are betting the farm on Bitcoin, is because those who can clearly elicidate the case for Bitcoin have been banned from mainstream social media. Case in point is Orange Man. Those still on Twitter and Youtube have to carefully watch their language when making the case for Bitcoin, because otherwise the ban hammer strikes fast and hard. I am not sure if you are genuinely oblivious to what happened between 2017 to 2020, or just pulling a Game of Thrones act. But at any rate, the die is cast and now we can only watch events unfold.

 

"But what if in the not so distant future, stocks and bonds, no matter how you permutate them, cannot generate the returns profile that you are looking for?"

I guess it's not unreasonable to assume that crypto could replace this at some point. You could have a bunch of assets that grow out of the crypto space that have cash and bond and stock like features. In fact, that's kind of already happening. But crypto as a whole is still a lot more like VC investments than traditional stocks/bonds/cash.

Look, I am not negative about crypto. The fact that I don't recommend it for clients doesn't mean I am bearish about it. I also don't recommend venture capital. That doesn't mean I am bearish about VC.

Anyhow, I can totally see a scenario where DeFi materially replaces or blends with TradFi. But my guess is that it will be much more of a blend than a replacement and that's where I think the BTC Maximalists get this wrong. This isn't a winner take all world. We'll still have big profitable corporations in 30 years. And we'll still have the USD and traditional stocks and bonds. Maybe crypto becomes a bigger piece of the pie. I don't know. But no matter how it plays out I don't think that crypto is going to completely replace the existing financial system so I think it's highly unlikely that stocks and bonds just disappear as an asset class.

"Pragmatic Capitalism is the best website on the Internet. Just trust me. Please?" - Cullen Roche
Quote from hodl on 05/26/2021, 10:00 AM

Cullen, thank you for clarifying when you will consider buying Bitcoin.

So you are constructing boring savings portfolios with steady returns.

But what if in the not so distant future, stocks and bonds, no matter how you permutate them, cannot generate the returns profile that you are looking for?

This is the fundamental basis for Bitcoin maximalism.

The reason why you do not understand why so many people are betting the farm on Bitcoin, is because those who can clearly elicidate the case for Bitcoin have been banned from mainstream social media. Case in point is Orange Man. Those still on Twitter and Youtube have to carefully watch their language when making the case for Bitcoin, because otherwise the ban hammer strikes fast and hard. I am not sure if you are genuinely oblivious to what happened between 2017 to 2020, or just pulling a Game of Thrones act. But at any rate, the die is cast and now we can only watch events unfold.

 

Bitcoin's collapse in recent months shows that bitcoin's future is unknown. It is quite possible that next year its value will not be higher than the current value.