Bitcoin: Too Volatile To Be Money?odysee.com/@TraderUniversity:a/bitcoin-too-volatile-to-be-money:0?r=8T2xqWjtafHWYGxQBSsrbw1wQPm7sWRq
525 sats \ 5 comments \ @Undisciplined 8 Jul bitcoin_beginners
From Bitcoin University

Video Description

In this video, I discuss whether Bitcoin is too volatile to ever become money. I conclude that it is not.
One source of Bitcoin's fiat price volatility is its relatively small market cap, compared to large global assets like gold, stocks, bonds, and real estate. These large assets are like the ocean, while Bitcoin is like the swimming pool whose levels rise and fall markedly when even a small amount of the ocean water enters or leaves the swimming pool.
Bitcoin's volatility has been decreasing over time (taking a similar path to large tech stocks, whose volatility has also gone down over time as their product adoption and market cap have gone up), but its volatility could skyrocket when we reach the final death throes of fiat money.
In Weimar, the end goal of physical gold priced in Papiermark was inevitable, but the actual path was extremely unpredictable and volatile, which precluded the use of leverage or timing the market.
Warning: keep only as much in fiat as you are willing to lose.
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43 sats \ 2 replies \ @Coinsreporter 8 Jul
A very good article, indeed!
What I don't understand is why they always put warning?
Warning: keep only as much in fiat as you are willing to lose.
Why can't people put all their money in Bitcoin and keep negligible fiat?
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34 sats \ 0 replies \ @didiplaywell 8 Jul
That's exactly what the phrase means, in a sarcastic way
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21 sats \ 0 replies \ @Undisciplined OP 8 Jul
If you read that carefully, you'll see that it's a joke. Normally, it would say "keep only as much in bitcoin as you are willing to lose."
He's making the point that fiat is the risky asset to hold, since we know it's losing value over time.
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21 sats \ 1 reply \ @160ed04091 9 Jul
To me, bitcoin is still in a price discovery phase, where its true value is being continuously assessed by the market, leading to large price swings as new information and developments come to light.
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10 sats \ 0 replies \ @Undisciplined OP 9 Jul
I agree. My personal expectation is that we're still at least an order of magnitude below what would be the current equilibrium price.
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