Speculation is one part of the art market, but at this point I really don’t think it’s as important as status. Plus, some of the art is really good as, you know, Art.
For years it has been claimed that cryptocurrency represented a great hedge against traditional assets and investments in the case of a downturn.
Like many other claims made about the utility of cryptocurrency, this too has been shown not to be the case.
Cryptocurrency has explicitly and repeatedly been touted as un or anti-correlated to the wider financial ecosystem, fiat currencies and the stock market, and has been loudly, noisily and never-endingly sold as a great hedge against these things, absent any evidence.
The evidence is in now, and those theories are a bust.
To turn it back on you - I'm not sure why you're upset that a central bank currency is being manipulated, that's entirely the point of such a system, to allow manipulation by steering committees to attempt to smooth out the bumps and judders in the economy and keep things on an even keel. It's a good thing!
Your faith is misplaced.
I wish you luck on your reading-less journey through this topic.
But I'm also not sure what that has to do with my posts further up, which are saying that another claim about cryptocurrency, that it's a hedge against the stock market and the wider financial system, is wrong. If you're trying to say "Well it might work out, longer term!" then I'm not really sure it qualifies as hedge at that point, you're just talking about another investment which it turns out is quite strongly correlated to the general financial markets.
It can be, but still be correlated right up until that moment.
The claim is a bust.
In fact it seems to be very, very prone to manipulation by all sorts of parties.
The point is, Bitcoin will bounce back, the dollar will not.
LOL. And every tether is backed by a US Dollar in a bank account, right? Nobody could possibly (say) fake buy pressure to put the prices up?
> The point is, Bitcoin will bounce back, the dollar will not.
What point? For what purpose will bitcoin "bounce back" that the dollar will not?
As the dollar is not an investment, but a means of exchange, it doesn't seem particularly important whether the dollar 'bounces back', because nobody is trying to sell you dollars to stick under the mattress as a get-rich-quick scheme.
What a weird comment.
The dollar itself though will not appreciate, it will continue to deflate due to unstoppable money printing.
Bitcoin doesn't have this problem, so you can hold it and long term there is a good chance it will appreciate. Again, the dollar has zero chance.
None of these is "investing in dollars" though. You're not just holding dollars and hoping the value will go up, because literally nobody does that. By design. If you want money to grow you invest it in productive assets. Unless you're into cryptocurrency when you gamble it on group psychology and dickbutt jpegs like 3AC did.
> Bitcoin doesn't have this problem
You haven't described a problem.
Your hurr crypto bad because NFTs and 3AC is basic association fallacy.
The problem is the dollar will not appreciate, bitcoin will, whether you like it or not.
These all sooner or later crash down, and bring the value of ETH and BTC down with them. Already billions of dollars have left the crypto space, and are unlikely to ever come back.
It of course isn't impossible that BTC will bounce back, but there is also no guarantee of it. Perhaps Gamestop will bounce back as well, or the Venezuelan Dollar.
This is you projecting, to some extent.
Especially so as the price of energy increases and global warming becomes ever more apparent, keeping many afraid of investing in such energy wasteful endeavors.
USDT is no longer trusted — but still swapped around due to now-legacy exchanges denominating in it.
Your other points are not true for many cryptocurrencies, and for the ones it is, there are plenty of players who don't hold your concerns — right, wrong, or indifferent, they exist.
1929-1932, the Dow drops 90%. "For every seller there is a buyer, and many are buying stocks [...] right now at low prices." Some people eventually did great, so it's all wonderful, so long as you ignore the staggering pain of the Great Depression.
Right. That's why one should not hold huge quantities of money for long times, but invest in debt and equity. 10 yr real rates even on treasuries have been almost always positive [1], though shorter riskless real rates have gone negative [2].