e9a5cfb074

bitcoin

Listened to a great interview with Parker Lewis (by Preston Pysh) talking about the Havening (on the "We Study Billionaires" podcast).

He made some really interesting points about why this creates such pricing pressure: much more than simply because supply of new Bitcoins are reduced by the 50% reduction in the block reward.

The other part of this is because the demand needs to get more supply from those already holding Bitcoin, and the only way to unlock more of this supply, is by paying more for it.  Yet many Hodlers aren't looking to sell for any price (or at least not for many multiples beyond this price).  So the bidding has to go higher and higher for more supply to meet even the exact same demand that exists prior to the Havening.

This is also why there is a lot of price volatility in Bitcoin, because it is TRUE price discovery.  The existing financial system has a huge amount of opacity in it, with so many layers, and rent seekers involved, that there is simply no way to know the true market price of anything.  Whereas with Bitcoin, its much cleaner, and direct, so what someone is willing to pay, and the price someone is wiling to sell for, is much more transparent.

Why the havening is going to really put the squeeze on

Now I Get It

siggy47

Damn, I'd love for more people to ask me to help them understand Bitcoin, for any reason!

ACH: Crappy legacy system vs Bitcoin's immediate and final settlement 

Yes, wires are released immediately.  Tried to save on fiat using ACH vs just paying for the wire.

I sent some fiat via ACH to an exchange to buy Bitcoin.  I can't transfer it to cold storage for 14 business days, because ACH means that the money can be clawed back, so the exchange has to await final settlement before releasing it.

I told the customer service rep that Bitcoin fixes this, because the transfers are near immediate (esp via Lightning) and settlement is final.  No need for the banks to be in the middle, and slow things down.

He kept explaining why ACH works this way, which I understood, but he did not get why I was telling him that Bitcoin is better

I love owning it, Hodling it, and spending tons of time learning about it.

And I keep wanting to do more with it, as I want to interact with it more since it is so fascinating and powerful.

But I laughed thinking: "I never want, or expect to do anything with my fiat money, or stocks, or any other financial instruments."

Bitcoin is just so exciting to me that I want to do more day-to-day with it.  It just feels a bit odd to me to feel this way about tech/money.