He founded Xapo, a Bitcoin custodian in 2014.
He's also a board member at Libra, PayPal, and Kiva.
But most importantly, he's responsible for bringing thousands of people into Bitcoin.
I'd recommend his podcast with @laurashin
This is the argument for a 5% allocation to Bitcoin.
It’s a summary of Wences Casares’ blog post written nearly two years ago (with direct quotes copy pasted).
Part one: Why Bitcoin could hit $1 million
Part two: Why you should buy Bitcoin
Here we go! 👇👇👇
He founded Xapo, a Bitcoin custodian in 2014.
He's also a board member at Libra, PayPal, and Kiva.
But most importantly, he's responsible for bringing thousands of people into Bitcoin.
I'd recommend his podcast with @laurashin
Bitcoin right now is similar to the Internet in 1994.
You don't need to know how the Internet works to understand it.
You don't need to know how Bitcoin works to understand it.
Investors who understand this will have an advantage over investors who don't.
Those platforms had to obey the will of their owners and the rules of the jurisdiction where they resided.
Bitcoin takes control away from the owners.
Kings and Queens used to be sovereign.
Then nation states became sovereign.
Now, for the first time, a computer platform has the aspiration to be sovereign.
This is revolutionary.
Miners secure it because they get paid in Bitcoin to do so.
If you were to remove the Bitcoin, miners would stop mining and Bitcoin would not be very robust nor sovereign.
Use Bitcoin to run a global system of value and settlement.
This is no different than what gold was for 2,000 years and or what the US dollar has been for the last 70 years.
Why?
a) 21M Bitcoin hardcap
b) Bitcoin is open and uncensorable
This allows for unprecedented economic freedom similar to how the internet allowed for freedom of information.
Gold has the advantage that it is tangible and many people (especially boomers) prefer assets they can touch.
Gold also has in its favor that it has been around for over 2,000 years, and it may be impossible for Bitcoin to match that history and reputation.
The dollar has the advantage that it is already understood and accepted globally and it is a platform with remarkable network effects.
Or it may be that we collectively come to appreciate the advantages of a digital unit that cannot be inflated or censored.
Only time will tell.
That’s correct.
Most forms of good money have no intrinsic value.
The main hurdle Bitcoin has to clear is to develop a similar social perception of value.
It may be a supranational currency that exists on top of all national currencies.
In other words, it could become a global non-political standard of value and settlement.
When your granddaughter asks what is the price of the New Zealand dollar she may receive an answer in satoshis: the New Zealand dollar is 72 satoshis today.
The US dollar? 107 satoshis
A barrel of oil? 5,600 satoshis today
The GDP of Indonesia? 1,417,007 Bitcoin
You get the idea.
Then all of these values would be easily comparable across time and across geographies.
You: We used the US dollar.
Granddaughter: But isn’t that the currency of the United States?
You: Yes
Granddaughter: But then how did you keep track of the US dollar?
She will think we were weird.
Once a protocol gets established it almost never changes.
We only use one web protocol and one email protocol.
Right now it looks like the standard protocol for a sovereign platform will be Bitcoin.
The Bitcoin price rallies are Bitcoin’s best moments but they are also its most dangerous and vulneread the word and how more people want to own it.
The Bitcoin price rallies are Bitcoin’s best moments but they are also its most dangerous.
During the rally too many people buy too many Bitcoin thinking that they will be able to sell them for a big gain very soon.
Usually that does not happen.
Anyone who tells you that they know what the price of Bitcoin will be next week is either ignorant or outright lying to you.
It's best to dollar cost average.
First, Bitcoin is not guaranteed to succeed.
But the numbers and amount of investment and activity in the space sure point to its success.
Wences put Bitcoin's chance of success in 2019 at 50%+.
And a lot has happened since then!
That is 30x what it’s worth today ($30k).
Based on this, you should allocate 5% to Bitcoin.
*Wences used 1% when Bitcoin was at $4,000*
$10M portfolio invests $500,000 (5%).
If Bitcoin fails, this portfolio will lose $500,000, or 5% over the next 3-5 years.
If Bitcoin succeeds, that $500,000 will grow to more than $15M.
It’s nearly impossible to find an asset that is so misplaced and where possible outcomes are so asymmetrical.
Bitcoin offers a unique opportunity for a 5% exposure to produce a life changing outcome.
But it would be almost as irresponsible to not have any exposure at all.
Follow me for more threads like this one: @JasonYanowitz
And most importantly...
Go read the actual post by Wences! It's much better than this summarized thread.
https://t.co/TLLOf1BBIj
More from Crypto
Michael Pettis @michaelxpettis argues that it is not always obvious who (China or the U.S.) adjusts best to "turbulent changes."
Bitcoin answers that question.
Thread:
World economies currently suffer four major redistribution challenges:
The most important is increasing government stealth use of the monetary system to confiscate assets from productive actors.
/2
That process is exacerbated by "Cantillon Effect" transfers to interest groups close to government ("the entitled class," public sector workers, the medical industrial complex, academia, etc....), which is destroying much of that wealth /3
The shadow nature (see Keynes) of government inflation makes the process unidentifiable, un-addressable and undemocratic.
The biggest victims (America's poorly educated young) are unequipped to counter generational confiscation tactics of today's wily senior beneficiaries. /4
Government control of the numéraire in key economic statistics (GDP, inflation, etc...) makes it impossible for economic actors to measure progress and liabilities. /5
Bitcoin answers that question.
Thread:
1/11
— Michael Pettis (@michaelxpettis) January 11, 2021
An article worth thinking about: \u201cAs changes to the world structure accelerate, China\u2019s rule is in sharp contrast with the turmoil in the West,\u201d says Beijing.
I agree, but I draw a different conclusion. The world is certainly currently going...https://t.co/ugha7ygqqx
World economies currently suffer four major redistribution challenges:
The most important is increasing government stealth use of the monetary system to confiscate assets from productive actors.
/2
That process is exacerbated by "Cantillon Effect" transfers to interest groups close to government ("the entitled class," public sector workers, the medical industrial complex, academia, etc....), which is destroying much of that wealth /3
The shadow nature (see Keynes) of government inflation makes the process unidentifiable, un-addressable and undemocratic.
The biggest victims (America's poorly educated young) are unequipped to counter generational confiscation tactics of today's wily senior beneficiaries. /4
Government control of the numéraire in key economic statistics (GDP, inflation, etc...) makes it impossible for economic actors to measure progress and liabilities. /5
1/ [December Bitcoin yield update]
Over the last year and a half, I’ve earned ~1.2BTC with various yield generating services to earn an average of 5% on 30 BTC.
Here’s my journey and how to guide👇
2/ Here are the ways you can earn yield:
Lending (Easiest/most popular)
Yield: 3-6%
- Ledn: https://t.co/4x0YATuQ0v
- BlockFi: https://t.co/90Xtg2cNka
Covered calls (Harder)
Yield: 1-80%
- Deribit: https://t.co/2iQVkXlylP
- LedgerX:
3/ Earning a yield enables you to stack more sats (what I’m doing), or reduce the temptation to sell your coin through earning an income.
The yield you earn comes with RISK!
Below is my current allocation for Dec (will update MoM)
(yellow = changes)
https://t.co/PZwVYs8lFT
4a/ [Nov > Dec Changelog]
- Covered calls: approx. 4 BTC was in $40k 12/28/20 contracts. Those closed without them being exercised (a good outcome for me). However, I was nervous about my January 1/28 $50k contract so I decided to close out my position at a small loss.
4b/ [Nov > Dec Changelog]
- In process of reallocating the 5 BTC (probably will be a lending platform).
- I incorrectly had my Ledn rate at 6.5%, it's 6.25%
Over the last year and a half, I’ve earned ~1.2BTC with various yield generating services to earn an average of 5% on 30 BTC.
Here’s my journey and how to guide👇
2/ Here are the ways you can earn yield:
Lending (Easiest/most popular)
Yield: 3-6%
- Ledn: https://t.co/4x0YATuQ0v
- BlockFi: https://t.co/90Xtg2cNka
Covered calls (Harder)
Yield: 1-80%
- Deribit: https://t.co/2iQVkXlylP
- LedgerX:
3/ Earning a yield enables you to stack more sats (what I’m doing), or reduce the temptation to sell your coin through earning an income.
The yield you earn comes with RISK!
Below is my current allocation for Dec (will update MoM)
(yellow = changes)
https://t.co/PZwVYs8lFT
4a/ [Nov > Dec Changelog]
- Covered calls: approx. 4 BTC was in $40k 12/28/20 contracts. Those closed without them being exercised (a good outcome for me). However, I was nervous about my January 1/28 $50k contract so I decided to close out my position at a small loss.
4b/ [Nov > Dec Changelog]
- In process of reallocating the 5 BTC (probably will be a lending platform).
- I incorrectly had my Ledn rate at 6.5%, it's 6.25%
Out of curiosity I dug into how NFT's actually reference the media you're "buying" and my eyebrows are now orbiting the moon
Short version:
The NFT token you bought either points to a URL on the internet, or an IPFS hash. In most circumstances it references an IPFS gateway on the internet run by the startup you bought the NFT from.
Oh, and that URL is not the media. That URL is a JSON metadata file
Here's an example. This artwork is by Beeple and sold via Nifty:
https://t.co/TlJKH8kAew
The NFT token is for this JSON file hosted directly on Nifty's servers:
https://t.co/GQUaCnObvX
THAT file refers to the actual media you just "bought". Which in this case is hosted via a @cloudinary CDN, served by Nifty's servers again.
So if Nifty goes bust, your token is now worthless. It refers to nothing. This can't be changed.
"But you said some use IPFS!"
Let's look at the $65m Beeple, sold by Christies. Fancy.
https://t.co/1G9nCAdetk
That NFT token refers directly to an IPFS hash (https://t.co/QUdtdgtssH). We can take that IPFS hash and fetch the JSON metadata using a public gateway:
https://t.co/CoML7psBhF
Short version:
The NFT token you bought either points to a URL on the internet, or an IPFS hash. In most circumstances it references an IPFS gateway on the internet run by the startup you bought the NFT from.
Oh, and that URL is not the media. That URL is a JSON metadata file
Here's an example. This artwork is by Beeple and sold via Nifty:
https://t.co/TlJKH8kAew
The NFT token is for this JSON file hosted directly on Nifty's servers:
https://t.co/GQUaCnObvX
THAT file refers to the actual media you just "bought". Which in this case is hosted via a @cloudinary CDN, served by Nifty's servers again.
So if Nifty goes bust, your token is now worthless. It refers to nothing. This can't be changed.
"But you said some use IPFS!"
Let's look at the $65m Beeple, sold by Christies. Fancy.
https://t.co/1G9nCAdetk
That NFT token refers directly to an IPFS hash (https://t.co/QUdtdgtssH). We can take that IPFS hash and fetch the JSON metadata using a public gateway:
https://t.co/CoML7psBhF
You May Also Like
Department List of UCAS-China PROFESSORs for ANSO, CSC and UCAS (fully or partial) Scholarship Acceptance
1) UCAS School of physical sciences Professor
https://t.co/9X8OheIvRw
2) UCAS School of mathematical sciences Professor
3) UCAS School of nuclear sciences and technology
https://t.co/nQH8JnewcJ
4) UCAS School of astronomy and space sciences
https://t.co/7Ikc6CuKHZ
5) UCAS School of engineering
6) Geotechnical Engineering Teaching and Research Office
https://t.co/jBCJW7UKlQ
7) Multi-scale Mechanics Teaching and Research Section
https://t.co/eqfQnX1LEQ
😎 Microgravity Science Teaching and Research
9) High temperature gas dynamics teaching and research section
https://t.co/tVIdKgTPl3
10) Department of Biomechanics and Medical Engineering
https://t.co/ubW4xhZY2R
11) Ocean Engineering Teaching and Research
12) Department of Dynamics and Advanced Manufacturing
https://t.co/42BKXEugGv
13) Refrigeration and Cryogenic Engineering Teaching and Research Office
https://t.co/pZdUXFTvw3
14) Power Machinery and Engineering Teaching and Research
1) UCAS School of physical sciences Professor
https://t.co/9X8OheIvRw
2) UCAS School of mathematical sciences Professor
3) UCAS School of nuclear sciences and technology
https://t.co/nQH8JnewcJ
4) UCAS School of astronomy and space sciences
https://t.co/7Ikc6CuKHZ
5) UCAS School of engineering
6) Geotechnical Engineering Teaching and Research Office
https://t.co/jBCJW7UKlQ
7) Multi-scale Mechanics Teaching and Research Section
https://t.co/eqfQnX1LEQ
😎 Microgravity Science Teaching and Research
9) High temperature gas dynamics teaching and research section
https://t.co/tVIdKgTPl3
10) Department of Biomechanics and Medical Engineering
https://t.co/ubW4xhZY2R
11) Ocean Engineering Teaching and Research
12) Department of Dynamics and Advanced Manufacturing
https://t.co/42BKXEugGv
13) Refrigeration and Cryogenic Engineering Teaching and Research Office
https://t.co/pZdUXFTvw3
14) Power Machinery and Engineering Teaching and Research
