The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
… just for you Flecs !! 😄🙄
https://t.co/JmNvt0lubs?ssr=true
The Video is quite an amusing spin on Bitcoin, but in the end it's just SPIN. It's correct that inflation erodes the value of Fiat currency and the lesson should be that no one holds more cash than they need as a float, or for emergencies. I wont invest in Bitcoin because I don't see any use for it, it's inefficient, wasteful, and the scarcity narrative is false in my opinion. I'd rather invest in companies that provide a measurable service and own hard assets. The video compares Fiat to Bitcoin, but last I heard Bitcoin is apparently now classified as a commodity, personally I don't view it as a commodity either. No mention in the Video about using hard assets as a hedge against inflation, like owning property, stocks, or commodities like Gold. It was amusing, but full of half truths and scripted to skew the narrative.
'.....No mention in the Video about using hard assets as a hedge against inflation, like owning property, stocks, or commodities like Gold...'
... and that , is a very good point indeed ... A Portfolio Mix ... is essential! 100% right on that one Flex ,,,,
....however , the very pertinent point in the (irony ladden ) video, was of course the return from 10k$ invested in BTC back in 2'10 .... compared to 10k invested in USD at same time ...... now that has to have 'chimed' with even you !!
Pas, I would suggest the outperformance of BTC is irrelevant and doesn't disprove my view that Bitcoin's price is based on belief and speculation. Obviously the hyped narrative, touting BTC as a solution to all the World's financial issues, has caught the imagination of some very rich people who've bought into the hype, then encouraging others to create a belief/speculative hype machine aimed at building a snowball effect.
I have no idea what will kill Bitcoin, or when it will happen, but in my opinion the lack of an efficient use case will eventually lead to its demise.
'.....touting BTC as a solution to all the World's financial issues, .....'
..who ?? ... In their right mind has said that , its not a solution to financial problems , its quite simply an alternative invesment opportunity (the 10k/2'10 investment example could not have been clearer in that irony ladden vi !) ... and as such , BTC has outperformed most other products since 2'10 .... its the 'daddy' (for now) of the digitally driven crypto world .... crypto as investments are here to stay , theres no doubt about that ... in the words of that brother /sister duo ... 'we've only just begun ' !
Pas, one of the narratives pushed by the vested interests is that Bitcoin will replace Fiat, don't take my word for it look on Google. If Bitcoin is an investment opportunity, what's the investment case? I would argue against the historic price outperformance as justification for buying Bitcoin, since Bitcoin doesn't have any efficient use cases. The value of Bitcoin is free floating and based purely on demand, but what is that demand based on in the absence of an association to something with a real world use? If Bitcoin was worth its weight in Gold, by association, then I could see where the valuation might come from since Gold has real world use cases, as well as being a store of value.
Well i certainly dont and never have suggested it will replace Fiat .... thats ridiculous ! However , it is a product that will work alongside Fiat ... of that, there is clearly no doubt !
The investment case is quite simple really , (1) If you'd invested 10k$ in BTC in 2010 , your investment would now be worth into the millions of $'s ; (2) If you'd invested your 10k in $'s in 2010 , its real value would now be less than 10k $.
So , i believe , that would have been very sound investment advice , albeit risky, at the time !
But it went over $68,000 in Nov 2021 and then fell to around $16,000 in December 2022, the reason it's so volatile is because it's not tied to anything tangible. How would anyone investing in Bitcoin today know it wont drop to $15,000, or $5,000, by this time next year? Because its value is based on speculation, even if the HODLers hold on to their Bitcoin the speculators could still push the price down to next to nothing, in the absence of the whales jumping in to support the price. Bitcoin has one purpose and that's to allow punters to bet on the price direction, anything else is just the facilitators who make money by running the machine and taking their cut.
…. It’s no more volatile than hundreds of stocks , forex , commodities etc