- Barter system, you give me a cow and I give you 100 kgs of rice (2/n)
π π©π«π’π¦ππ« π¨π§ ππ₯π¨ππ€ππ‘ππ’π§ & ππ«π²π©ππ¨π¬ π§΅
I still everyday meet investors who think Bitcoin & Blockchain are the same & this thread is specifically for them
Do re-tweet & help us educate more invetsors βΊ
#Investing #Cryptos #Bitcoin (1/n)
- Barter system, you give me a cow and I give you 100 kgs of rice (2/n)
- It was difficult to transact in fractions
- What if I want only 50 kgs of rice? I cant give you half a cow right?
- This is the prime reason for the introduction of smaller units of payment method we now call as coins (3/n)
- It was malleable & portable
- It was non corrosive, could be stored for a long time
- It was a perfect combination of abundance & rare
- Plus it was eye catching & visually appealing (4/n)
a) When paper currencies were introduced, it was decided that a country could only print as much currency as the gold reserves they have but this was withdrawn in 1971 bcoz of which the central banks could then print as much money as they wanted
(c) To solve the above problem, Bitcoin was invented. (6/n)
(a) It claims to be a Store of value (like Gold is) & a payment method (Like $ is) (7/n)
(a) Assume split wise. Friends go out, sometimes someone pays and sometime someone else. At the end of the year, there is a ledger mentioning how much does who owes whom. (9/n)
(c) Currently, banks do this verification when you transact through the bank. Banks maintain transaction record of credits & debits (10/n)
(e) But what can you do to decentralize? No banks, no NSE/BSE/CDSL/NSDL? To verify the transactions, you use computational work (replacing intermediaries (Banks) with computational work), let me explain (11/n)
(a) There are multiple computers also called as miners or NODEs are connected to each other on open source software (12/n)
(a) It is called Bitcoin Halving
(b) It reduces the bitcoin reward for the miners by half every time 2,10,000 blocks are verified (18/n)
(d) This is the bitcoin reward 4 solving the block & no new bitcoins after 2,10,00,000 bitcoin are released
(a) Altcoins - Anything other than a Bitcoin is called the Altcoin. Example β Ethereum, Cardano, Polkadot (20/n)
(c) Meme-Coins - Made for fun, have no logic. Example β Doge, Shiba (21/n)
(a) Blockchain is a brilliant technology & has multiple use cases in various industries
(b) But on Bitcoin, I am not sure if it will be able to replace paper currencies as a medium of transaction or gold as a store of value. (22/n)
(d) Altcoins with use cases like De-fi will evolve over time & we will talk about it in the next thread. Will also talk about the fancy around NFT's & Metaverse going forward (23/24)
@KirtanShahCFP
Have earlier written on,
-Sector Analysis
-Macro
-Debt Markets
-Equity
-Gold
-Personal Finance etc. You can find them all in the link below https://t.co/UrRt87xIJFβ¦β¦β¦β¦β¦ (END)
Here\u2019s a compilation of Personal Finance threads I have written so far. Thank you for motivating me to do it.
— Kirtan A Shah (@KirtanShahCFP) December 13, 2020
Hit the 're-tweet' and help us educated more investors
More from Kirtan A Shah
A thread π§΅to guide retail on why & what should they do at these historic market highs.
Do βre-tweetβ and help us educate more retail investors (1/n)
#investing #StockMarket
Some investors feel that markets are trading at a PE of 27 vs 10 years historical average of 20 and a market-cap to GDP of 105 vs historical average of 79 and hence markets look expensive (2/n)
But, in such crazy liquidity driven markets, prices can move much ahead of the fundamentals & suddenly we start hearing commentaries of how the market is pricing in the earnings of FY 22 & 23 to justify the rally
If you r new to fundamentals, π can help
Market PE at 40 and yet the market is not falling, why? Getting asked this question multiple times. Here's a thread covering \u2018very basic\u2019 premier on valuation for my retail investor friends.
— Kirtan A Shah (@KirtanShahCFP) January 14, 2021
Do hit the \u2018re-tweet\u2019 and help us educate more investors (1/n) pic.twitter.com/8oCkBmmOXY
Results for Q4 have come out very well but that is also because of the lower base effect of the last year.
Over the last many years, markets have corrected 10-15% each calendar year. Can it happen this year as well? Can very much and that can be a great entry point. Why? (4/n)
There are a lot of over hangs in the near term,
-Crude going up
-$ index moving up
-Inflation moving up
-COVID uncertainties
All of the above are βve for markets & liquidity on the other side driving markets up, its impossible to judge the near term movement of the markets (5/n)
Hit the 're-tweet' and help us educated more investors
Yes Bankβs additional Tier 1 bonds, written off. Lakshmi Villas Banks Tier 2 bonds, written off. Understand what & why of ATI and Tier 2 bonds in this thread.
https://t.co/VBmV2dwpPn (1/n)
Yes Bank\u2019s additional Tier 1 bonds, written off. Lakshmi Villas Banks Tier 2 bonds, written off. Understand what & why of ATI and Tier 2 bonds in this thread.
— Kirtan A Shah (@KirtanShahCFP) December 4, 2020
Do \u2018re-tweet\u2019 and help us benefit more investors (1/n)
'Floating Rate Funds' - A case for debt investing in the current interest rate situation
'Floating Rate Funds' - A case for debt investing in the current interest rate situation (A Thread)
— Kirtan A Shah (@KirtanShahCFP) November 27, 2020
You should not miss this if you invest in Debt.
Do \u2018re-tweet\u2019 & help us benefit more investors (1/n)
Fixed Income investment strategies
Itβs a misconception that FD, RBI Bond, PPF etc have no risk. The reason we donβt see the risk in them is because for us, risk ONLY means loss of capital.
Fixed Income investment strategies (Thread)
— Kirtan A Shah (@KirtanShahCFP) November 20, 2020
Do 're-tweet' & help us reach & benefit investors
It\u2019s a misconception that FD, RBI Bond, PPF etc have no risk. The reason we don\u2019t see the risk in them is because for us, risk ONLY means loss of capital. (1/n)
Index Funds v/s ETFs
While index funds and ETFβs look similar, there are multiple differences you need to keep in mind before investing in either of them. Let me highlight the important ones
Index Funds v/s ETFs
— Kirtan A Shah (@KirtanShahCFP) November 17, 2020
Do 're-tweet' so that we can reach a larger audience :)
(Thread)
(1) While index funds and ETF\u2019s look similar, there are multiple differences you need to keep in mind before investing in either of them. Let me highlight the important ones (1/n)
More from Bitcoin
As each asset class goes on-chain, it can be stored in a digital wallet. And it can be traded against other such assets. Not just cryptocurrencies, but national digital currencies, personal tokens, etc.
Weβre about to enter an age of global monetary competition.
The defi matrix is the table of all pair wise trades. Itβs the fiat/stablecoin pairs, the fiat/crypto pairs, the crypto/crypto pairs, and much more besides.
Uniswap-style automatic market making for everything. Every possession you have, constantly marked to market by ~2040.
More liquidity, less currency?
This is an interesting point. Cash doesnβt make you money. In fact, it can lose you money in an inflating environment.
Reliable, 24/7 mark-to-market on everything is hard β but if achieved, means less % of assets in cash.
Thus less use for currencies as people can more easily store their wealth into assets and easily trade them.
— Pierre-Yves Gendron (@pierreyvesg7) February 24, 2021
AMMs boost BTC. Here's why.
- All assets trade against all assets in the defi matrix
- Automated market makers give liquidity for rare pairs
- Everything is marked-to-market 24/7
- Value of cash drops, as you can liquidate instantly
- The new no-op is to keep your assets in BTC
Basically, automated market makers like @Uniswap boost BTC in the long term, because they allow *everything* to be priced in BTC terms, and *anyone* to switch out of BTC into their asset of choice.
Though in practice this may mean WBTC/RenBTC [or ETH!] rather than BTC itself.
in this thread, i'll quickly outline key data points on #bitcoin sentiment, demand, market structure, and macro conditions
disclosure: i own BTC, obvi. this is not investment advice. DYOR. further disclosures at
2/ let's start w sentiment βΊοΈ
first, investor sentiment:
β @blackrock filed to add BTC to 2 funds, CIO has 400k price target
β @RayDalio's Bridgewater reportedly issuing BTC research report
β JPM, Goldman, and other bulge brackets initiated research coverage
3/ next, trader sentiment:
π¨ most important indicator is the forward curve
normally BTC futures trade in backwardation after a price drop.
this time, the curve stayed in contango following drop, meaning market makers are bullish ππ despite funding rate increase!
4/ sentiment drives demand. so DEMAND next.
πΈ let's talk fund flows
π€ our research shows $359M of inflows into crypto products last week alone (https://t.co/6Kky96m3ob)
π€ our @CoinSharesCo @xbtprovider ETPs saw $200M trading volume on jan
4/ let's talk bitcoin fundamentals
post-halving, 900 BTC mined per day, 312,000 this year.
π 47M millionaires. 21M bitcoin.
π collectibles selling at all time highs. bitcoin is the ultimate collector's item. (see
https://t.co/cv4UqsaVAK
That being said I hold some Doge @blockio in an "A-" address myself after 0. 1. "9-" versions :). Don't believe Bitcoin Core the Coin (Utility) is the only visible value on Core chain. Color me crazy. I believe in script. And FOSS that is used to exportπ
And that's just a guy @MeniRosenfeld who put his identity and ideas out in the public to build a Web of Trust back when the web was much less of a safe place. His identity at stake and the implementation of a branch in source code by another unsung hero @killerstorm reveals value
Some of those who set up our bright future quietly implemented it in a branch on the main source code before it was officially the Bitcoin Core main repository, before a "Bitcoin Core" entity existed
Just because Bitcoin Core nodes dominate and do not read "smart" colored satoshis or display them, doesn't mean they do not exist on chain. The example of recreating P2WSH-over-P2SH address from BTC https://t.co/ZWSP2MO5bY wallets in Bitcoin Core Gold I shared proves -rescan's $