Currency can be backed by something, not the method by which governments steal time and labor from people. That's why.
The currency argument is just the "government" argument. Can gold be currency? Same answer. It can back "currencies", though.
Money Creation and Central Banking
- Thread starter Read_Lives_of_Saints
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The currency argument is just the "government" argument. Can gold be currency? Same answer. It can back "currencies", though.
What does Eisman's take on this matter? He doesn't even know the first thing about it, as evidenced by the interview. Like most older guys that were able to take advantage of the old system, he doesn't have any interest in it displacing his fiat and derivative betting skills, to be quite honest.
Did you watch the whole interview? It's a bit foolish to suggest Steve Eisman doesn't understand the matter or that he doesn't understand investment strategy, he doesn't understand storages of value or storages of information.
It's also a very arrogant position to assume folks who've been doing this on a grand level for 30 years are fudds just because they don't share your position...
He's just skeptical and brings up many points that are shared by those who haven't fully bought into the same enthusiastic Point.
Summary of this that I took away:
Bitcoin can't be a currency and a hedge against a currency at the same time.
Block chain technology is not the same thing as crypto.(I made that comment earlier) This is like the number one comment I see when I start talking to Bitcoin nerds. And...this was my confusion with your argument. Crypto and block chain technologies are linked, but they function in different purposes.
One argument in favor of block chain backed crypto is a store of information. Potentially allows for faster international transfer (compete against SWIFT).
The issue is that currently the institution and infrastructure too heavily favors the major payment processes in a way that buttcoin or other crypto coins dont.
I will say the guest on the show does a good job bringing up counter points but I am still more inclined to be skeptical.
If Bitcoin is a hedge against the rest of the market, and the rest of the market crashed... It's unlikely that it would serve a position where by
Again earlier you made several points equating block chain tech with Bitcoin or crypto. They are not the same. However there is linkage. It's like block chain is the Internet and crypto is email ...I see use for block chain in my world with supply chain in particular. But I don't see my company using bitcoin or crypto for transactions.
Those are some highlights I took away and pretty much aligned with my take on block chain ve crypto and what I understood in 2023 when this was covered in some of my finance classes.
With all due respect Steve Eisman is far from an expert on crypto. I’m not saying you cannot take into account his viewpoint into account but you cannot rely solely on him and need to also listen to people who are subject matter experts on crypto. People who write code for crypto or monetary economists/historians like Saffidean Ammous etc.
Michael Saylor has an engineering and IT background and knows a lot more about the technical aspects of crypto than somebody like Steve Eisman.
It’s like when people listen to Larry Fink too much. Larry Fink is a bond expert. He is not an expert on stocks or commodities or crypto currencies etc. His views matter of course because he controls a lot of money and capital flows but from an information perspective when it comes to anything outside of bonds he is not necessarily more knowledgeable than any other talking heads.