The fact that there is such a focus on risk management is telling. But what does it mean?
If cryptos are “here to stay”, “the new normal”, “inevitable”, etc. then why worry - or the need to hedge - at least in the long run?
Is the financial industry trying to protect investors from loss? Maybe, because customer losses are bad for business. But there could be a more devious reason than just more ways to make profits. It could be attempts to keep the crypto Ponzi scheme going. I consider this to at least be circumstantial evidence of that.
A Ponzi needs continual players, and these “lower barriers to entry” products may be a means to attract more suckers. It could be that those who are inclined to invest in Bitcoin or other cryptos have maxed out; everyone else is too risk averse, especially at all-time highs. The number one reason for most people to not invest in cryptos could be that cryptos are too volatile, in addition to following the old dictum, “Never invest in what you don’t understand.” These leveraging products could be a way to address those concerns.
Providing easier access, speed, convenience, lower initial cost, downside protections, and facilitating trading are all means to increase activity. It’s like lowering the voting age. The vote of a 13 year old counts just as much as her mother’s. (That’s why the Democrats want younger people to vote. As Kamala Harris said, “One thing we know about young people is that they’re really stupid.”)
The bottom line is a steady stream of investors are required to keep the crypto bubble going, and to maximize the profits for those who bought in early. It seems to me that's the real reason the industry is trying to offer "less risky" ways to invest in cryptos.
I agree that peak complexity guarantees a collapse,
But I don´t like/understand the
Real Estate: Real estate assets can be tokenized, allowing investors to buy and sell fractional ownership of properties. This increases liquidity in a traditionally illiquid market. ??
Why...should it be allowed for a " speculator " to tokenize my house, that is paid for..??
where does this..improve liquidity...for me...? - lower rates ? when there is NO debt..? B.S
I see it, as the ticket sellers..i.e Comex..et al.... to sell/buy/manipulate any market to skim of both parties of "investors"...
A bit like Airliners selling 105 % of the seats, hoping some don´t show up....
I know people like the latest new fad. But I'll stick with cash, stocks, bonds, and real estate. The S&P 500 went up 20% (1,000 points) in the past 12 months. I made money.
I'm old. I'm living day to day. The correction in prices is coming, but so is my Dirt Nap.
Thanks John, i have had these feelings myself. I wont be alone. I am sure there will be a class of “luddites” will only ever deal with cash cos cant trust anything else to be real value or main value!
“cryptocurrencies…has opened the floodgates to a whole universe of new instruments and strategies that few investors over the age of 50 can ever realistically hope to understand.”
Well, if that’s true then “we” better hope the regulators are young’uns, right?
After all you don’t want products that don’t work, right?
Unfortunately, that ship has already sailed. Bitcoin, to say the least, is already misunderstood - especially by young people - so doubling down on it is going to be a disaster. (Old) news flash: Bitcoin can’t work practically. It works on paper and it can sort of work slowly, but not at scale and in real time. It’s still in the “tulip” or “beanie baby” bubble stage: The vast majority are simply “held” offline (i.e., not used in transactions) so the limits of the networking system haven’t revealed themselves - yet. So, the myth and delusion continues. As Jeanine Piero of Fox News says, “I bought some bitcoin and it just simply goes up, like magic!” She doesn’t use it, and nor do the majority of other “hodlers”. But as long as that dynamic holds, BC can continue to rise just on a supply-demand basis, supply actually decreasing as the ETFs collect more and more of them making them unavailable for sale (unless their investors sell), but more importantly, unavailable for transactions.
I actually think more quinquagenarians understand that than their kids but time will tell.
And so will the consequences of leveraging fantastic things. It could actually quicken the revelatory process. Bitcoin is already not what it was intended and making it a casino chip is the ultimate mockery.
Remember “Satoshi Nakamoto’s” white paper and “his” first email about it? It was about simplicity and privacy and decentralization. A technological antidote to human nature, fiat and central banking. Privacy was the first to go, and if these leveraging products are introduced then simplicity will die as well.
The derivatives that you are comparing to today's gambling casino is apples and oranges. I don't know how old you are, but you might consult with some of your older traders about what happened in '06 through '09.
The fact that there is such a focus on risk management is telling. But what does it mean?
If cryptos are “here to stay”, “the new normal”, “inevitable”, etc. then why worry - or the need to hedge - at least in the long run?
Is the financial industry trying to protect investors from loss? Maybe, because customer losses are bad for business. But there could be a more devious reason than just more ways to make profits. It could be attempts to keep the crypto Ponzi scheme going. I consider this to at least be circumstantial evidence of that.
A Ponzi needs continual players, and these “lower barriers to entry” products may be a means to attract more suckers. It could be that those who are inclined to invest in Bitcoin or other cryptos have maxed out; everyone else is too risk averse, especially at all-time highs. The number one reason for most people to not invest in cryptos could be that cryptos are too volatile, in addition to following the old dictum, “Never invest in what you don’t understand.” These leveraging products could be a way to address those concerns.
Providing easier access, speed, convenience, lower initial cost, downside protections, and facilitating trading are all means to increase activity. It’s like lowering the voting age. The vote of a 13 year old counts just as much as her mother’s. (That’s why the Democrats want younger people to vote. As Kamala Harris said, “One thing we know about young people is that they’re really stupid.”)
The bottom line is a steady stream of investors are required to keep the crypto bubble going, and to maximize the profits for those who bought in early. It seems to me that's the real reason the industry is trying to offer "less risky" ways to invest in cryptos.
We
I agree that peak complexity guarantees a collapse,
But I don´t like/understand the
Real Estate: Real estate assets can be tokenized, allowing investors to buy and sell fractional ownership of properties. This increases liquidity in a traditionally illiquid market. ??
Why...should it be allowed for a " speculator " to tokenize my house, that is paid for..??
where does this..improve liquidity...for me...? - lower rates ? when there is NO debt..? B.S
I see it, as the ticket sellers..i.e Comex..et al.... to sell/buy/manipulate any market to skim of both parties of "investors"...
A bit like Airliners selling 105 % of the seats, hoping some don´t show up....
I know people like the latest new fad. But I'll stick with cash, stocks, bonds, and real estate. The S&P 500 went up 20% (1,000 points) in the past 12 months. I made money.
I'm old. I'm living day to day. The correction in prices is coming, but so is my Dirt Nap.
If it isn't analog, it isn't real.
Thanks John, i have had these feelings myself. I wont be alone. I am sure there will be a class of “luddites” will only ever deal with cash cos cant trust anything else to be real value or main value!
except precious metals
If I understand this properly Tokenized Everything is the means to bring about what is mentioned as You will own nothing and be happy.
Everything that is not totally paid for and has a collateral claim in it will be Tokenized and the rest will be history.
“cryptocurrencies…has opened the floodgates to a whole universe of new instruments and strategies that few investors over the age of 50 can ever realistically hope to understand.”
Well, if that’s true then “we” better hope the regulators are young’uns, right?
After all you don’t want products that don’t work, right?
Unfortunately, that ship has already sailed. Bitcoin, to say the least, is already misunderstood - especially by young people - so doubling down on it is going to be a disaster. (Old) news flash: Bitcoin can’t work practically. It works on paper and it can sort of work slowly, but not at scale and in real time. It’s still in the “tulip” or “beanie baby” bubble stage: The vast majority are simply “held” offline (i.e., not used in transactions) so the limits of the networking system haven’t revealed themselves - yet. So, the myth and delusion continues. As Jeanine Piero of Fox News says, “I bought some bitcoin and it just simply goes up, like magic!” She doesn’t use it, and nor do the majority of other “hodlers”. But as long as that dynamic holds, BC can continue to rise just on a supply-demand basis, supply actually decreasing as the ETFs collect more and more of them making them unavailable for sale (unless their investors sell), but more importantly, unavailable for transactions.
I actually think more quinquagenarians understand that than their kids but time will tell.
And so will the consequences of leveraging fantastic things. It could actually quicken the revelatory process. Bitcoin is already not what it was intended and making it a casino chip is the ultimate mockery.
Remember “Satoshi Nakamoto’s” white paper and “his” first email about it? It was about simplicity and privacy and decentralization. A technological antidote to human nature, fiat and central banking. Privacy was the first to go, and if these leveraging products are introduced then simplicity will die as well.
Beware of Nakamoto’s revenge!
Convenience & liquidity is a sure seller. But…Isn’t this the step immediately preceding the, “You will own nothing and be happy” part?
When one slashes their wrists/risks to “End it All”, does one slash up the forearm or across it? Just don’t want to screw this up.
Start visualising a better world, it works
like Willy Wonka and the Chocolate Factory, one day you'll get the magic coupon
Lots of symptoms of a diseased economy.
If you look at the current fiat system as a ponzi scheme then adding more and more complex ways to keep it going makes perfect sense.
The debt bubble must get bigger, or it pops.
This is stunningly stupid. Thanks for pointing it out. Wow!
The derivatives that you are comparing to today's gambling casino is apples and oranges. I don't know how old you are, but you might consult with some of your older traders about what happened in '06 through '09.