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felixbraun on May 7, 2020 | hide | past | favorite


Tow things to note,

1. checks store of value for him

> [Paul Tudor Jones] said he evaluated Bitcoin as a store of value and decided it passes the test based on four characteristics: purchasing power, trustworthiness, liquidity and portability.

2. Given the futures curve is in contango, what does that mean for future expected price? https://www.cmegroup.com/trading/equity-index/us-index/bitco...? Up?



Yep, I used to work in finance and I think this is a conclusion that most people have come to (although implementing it is hard given how small Bitcoin is). A few years ago, it was definitely still niche but is pretty much in the mainstream now.

There are other good hedges btw (HFT was one that worked out well this crisis) but I think the weakness of stuff like USTs has been exposed (they basically didn't work because everyone and their grandmother had this position on) so people are going to be looking for alternatives.


Does he realize the people who took it over are limiting the transaction rate to around 50KB/s ?


For store of value, that's fine. You don't need fast transactions. It's way more convenient than gold and real-state.


TIPS are a risk free hedge against inflation.

Bitcoin is ... not that.


The “inflation protection” provided by TIPS relies on the good-faith reporting of the same government which creates and benefits from the inflation.

If inflation as measured by the CPI picks up beyond the single-digit numbers of normal years, do you really expect TIPS to remain honestly valued? Even if that means they outperform all other assets “risk free?”


Perfect hedges are impossible.

TIPS are a far better hedge for inflation than Bitcoin.




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