The Investing World No Longer Makes Sense!
The investing world is no longer making sense, it's time for bitcoin.
One glaring example, among many, is what is going in with the bond markets.
Right now, according to Deutsche Bank, roughly 27% of all the bonds in the world trade at a negative interest rate...
(Source: https://twitter.com/gaborgurbacs/status/1161612848390451200)
Let that sink in for a moment, over a quarter of all the bonds issued in the world trade at a negative interest rate.
That wouldn't be that bad except when you take into account the amount of money sitting in those bonds.
That 27% accounts for roughly $15 trillion dollars!
For some perspective, that $15 trillion is roughly 80x the current market cap of bitcoin.
And they say it makes no sense to invest in bitcoin...
It LITERALLY makes ZERO sense to invest in a negative yielding bond!
I look forward to the day that finance starts making sense again.
Stay informed my friends.
-Doc
This makes little sense as the top rated bond, US treasuries, are giving over 2%. What quarter of institutions think they have a better ability to pay their debts than the government that taxes the world's largest economy? Crazy.
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It would be interesting to see exactly what bonds are yielding negative rates... perhaps that is fodder for another post. :)
when it drops ninety percent to gold then it will be time to get back into the market
its sounds crazy but it happens in every big market crash
hell the whole DOW in on of them i cant remember which one you could buy for one ounce of gold
now you need a shitload more
it will revert to the mean and then i hope i have a lot of cash on hand for that day
i believe its a lot closer than people think
i am out of here for the weekend so have a good weekend JR and enjoy the weather
The finance system as we know it today, will eventually collapse because the companies that are the foundation of the system will continue to downsize services and eventually we will hit the critical level where normal people just stop using it because keeping "money" inside the system costs more than they have.
Correct. Until now there really wasn't an alternative. I am actually shocked they are allowing bitcoin to grow up like they are...
I think it's essential flaw of the blockchain technology... It scales to a degree and after that it becomes unsustainable. Only way for a cryptocurrency to survive for indefinite time period is to periodically restart the blockchain and transfer over only the balances... This means inactive users will lose value of their coins eventually. This pretty much implies that any extra data (posts and comments in case of Steem) must be stored outside the primary blockchain.
Correct. Either the token must keep going up indefinitely or the blockchain will eventually die. That is unless the tech is improved along the way, tech that is unknown at this point in time. :)
As a coin developer myself, I have to constantly keep myself updated with development of cryptocurrency as an industry... Some months ago there was talk about discarding old data from blockchain that is not supposed to change anymore neither is needed to preserve integrity of still used data. This includes for example all transactions with all outputs already spent. When block has no transactions that have unspent outputs, it will be pruned from blockchain data that is synced with other peers or stored on disk. In case of Steem, it could also include previous copies of edited posts and comments when the edit window has expired. This would require all new nodes to be able to skip those pruned blocks without risk of spontaneous chain split, essentially explicitly setting and propagating dynamic checkpoint on first block that is not pruned yet.
What about if the editing option window is never closed?
Obviously then last N versions would be preserved...
That doesn't seem to be possible then with the current tech without a blockchain eventually toppling over on itself.
Negative bond rates are crazy!!
Bank says - "Give me $100 (Bank continues to print money) and I will give you back less..... but......it will be more than anywhere else"
!?
As things deteriorate more people will use Bitcoin as a hedge against inflation and the current fiat monetary system.
Yep, that is the thesis. It may be starting to play out right now.
Looks promising to lose money 100% of the times 😂
It sure wouldn't be my first choice as an investment, that is for sure! But, what do I know...
Many folks wouldn't understand what it means to say "invest in a negative interest bond". Simply put, that means you are PAYING someone to take and hold your money for you. AND usually bonds won't have any kind of insurance or surety, unless they are government bonds, to guarantee you will get your money back. Even municipal bonds can be defaulted upon, and is in fact happening more and more these days. You would make more money by stuffing your mattress or burying your cash in the back yard than buying a negative interest bond.
And yet...here we are.
Except we average about 1.8% inflation per year (at least here in the US)... both options are equally bad. :)
True. So if you are PAYING for an investment, for someone else to hold your money, AND losing value to inflation, you are really getting screwed...oy!
A double kick in the shorts!
I read that this is even getting into some mortgages in Norway! Imagine paying a portion of a mortgage back! How does that even make sense!
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It makes zero sense. I have heard about it with bank accounts in some places as well. You pay them to hold your money!
This is the reply I wanted to make, so a link instead from the twitter thread you quoted: https://twitter.com/daveweisberger/status/1161630991238254593
The negative rates are relative not absolute.
Better than a domino effect of institutional defaults.
Well said. Anything to keep the status quo rolling along.
It makes sense of you want max protection for your money, lol.
I guess that is true, but why not just hold it in a safe/vault yourself?!
Well, İ have two questions for you, in order to answer your question
First is - what is in your opinion the percentage of retail money for this 15 trl
Hope I answered your question :)
You did... I think. It seems like an extreme flight to safety.