Re:Coinbase S-1
by statstutor on Thursday February 25, 2021 @11:16AM
(#26264443)
> rooting for their own society to collapse just to have another reason to use Bitcoin.
I view the main value of Bitcoin (or gold, especially paper gold) is as a gamble or hedge against currencies collapsing, in a situation which leaves Bitcoin (or gold) relatively unaffected.
Without doing the formal calculation, I'd guess that Kelly criterion will suggest that an average person with an average risk profile should hedge 0 on this basis (exactly what the vast majority of people have done).
If you've invested more than that, it becomes in your personal interest that currencies collapse in precisely that way.
I view the main value of Bitcoin (or gold, especially paper gold) is as a gamble or hedge against currencies collapsing, in a situation which leaves Bitcoin (or gold) relatively unaffected.
Without doing the formal calculation, I'd guess that Kelly criterion will suggest that an average person with an average risk profile should hedge 0 on this basis (exactly what the vast majority of people have done).
If you've invested more than that, it becomes in your personal interest that currencies collapse in precisely that way.