Re:Bitcoin: Magic Internet Money
by asdff on Wednesday January 13, 2021 @06:03PM
(#25769220)
It is pretty ridiculous that an appreciable percent of stimulus money intended to circulate within the national economy is being used for pure speculation. At least stock investments increase productivity.
[ Parent
| on HN ]
That's what happens when you offer tax cuts, business loans, 0% interest and other corporate bailouts as a means of economic stimulus instead of just direct payments to people who need it the most and will spend it on essentials.
The price of virtually all stocks has been inflated due to stimulus money, as some people are using stocks as a store of value and some are speculating.
The price to earnings ratio of Tesla is 1692—that’s nuts.
Agreed on the stock market valuations being crazy, but then: where would you park your stimulus money instead?
Bonds?
Gold?
Real estate?
The truth is, preserving wealth in 2021 isn't obvious at all.
The top 2 economic problems of 2021: "I can't afford rent or food" and "I don't know what to do with all my extra money".
What people don’t get—everything denominated in dollars is also inflated by dollars, meaning when the printing of trillions dollars stops, real estate, stocks, etc. will crash.
We’re well on the way to negative interest rates.
The primary reason for the rise of bitcoin’s price from the low in March 2020 to $37,000 and change tonight is because it’s being used to preserve wealth.
Any articles with more details on your reasoning?