Re:Big Ideas 2021 [pdf]
by doggosphere on Tuesday January 26, 2021 @09:30PM
(#25923561)
Its volatile, but first principles says volume should shake this out over time as it scales and becomes adopted.
For now, its an asymmetrical bet with more upside than downside. For the right company (Apple? Tesla?), buying in basically guarantees instantaneous capital appreciation as it signals an endorsement to the market.
I don't think a large co. buying is necessary for Bitcoin to keeping growing, but if it does, game theory suggests other treasuries will look at that action and say, "well, why not us?"
Sure, but Bitcoin isn't even a particularly good way to hedge against inflation, given the wild volatility and speculative nature of the investment.
There are any number of other ways to hedge against inflation.
This is why "If we could capture 1% of the TAM..." arguments are flawed: They're worthless without an explanation for why this particular product is more likely to attract 1% of the TAM than comparable products.