🧵 1/ So the #Fed added $300B to its balance sheet seemingly overnight.
What you’re seeing for #Bitcoin isn’t organic demand.
It’s a speculative boost.
Yes, we’re in a speculative market but for a bull market we need sustained capital injection.
Banks are literally broke. 👇
2/ These rallies can’t be sustained into long-term uptrends imo.
They must remain as rallies.
ESPECIALLY if you want more upside in the future.
The higher we go now, the more of a cap is place on the future upside.
Why?
QE, even by any other name cannot continue forever.
3/ Yes, Bitcoin might be seen as a “safe haven” against out of control central banks.
But guess what, when your safe haven asset can rise 10-20% in pure speculation, or drop 50%+ in a few months.
Institutions don’t want to enter something like that.
Nor do wealthy individuals
4/ You and the big boys have entirely different anticipated outcomes for investing in #Bitcoin and other assets.
You = want to multiply your pennies and get rich
Big boys = want downside protection
Big guys don’t care about making money. They just don’t want to lose it.
5/ That’s why they’re called risk assets.
Because they’re fucking high risk.
Btw, if you think I’m bearish. You’re mistaken.
I’m uber bullish long term but I’m also hyper aware of all the shortcomings and risks and want you to be too.
6/ Oh but Sheldon! WE DON’T NEED THE INSTITUTIONS. Bitcoin is the people’s money!
Bro, the economy is in horrible shape.
Businesses are closing down, 10s of thousands are losing their jobs. AI will replace all knowledge work.
Where do you think this capital will come from?
7/ I don’t have answers, I’m just thinking out loud and I do believe there’s still gas in the tank to go higher and please PLEASE take advantage of swinging these rallies both ways.
But remember, markets can remain irrational longer than you can remain solvent.
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The insane pushback against the Ubisoft NFT announcement indicates two things. (Past sentiment towards Ubisoft ignored)
1. A mass misunderstanding of the utility that NFTs can bring, especially to the gaming world.
🧵 cont.
Even though the studios will be rewarded and have a MASSIVE financial incentive to pursue this. The user benefits as well.
Users already spend millions on in-game assets that THEY DO NOT OWN. Disposable non-transferable assets.
Gamers hating on NFTs I think has more to do with not being aware of the benefits they will receive too. Hate for mass corporations and major studios is one thing but following the herd and adding to the pushback shows how early we are and the studios that have high conviction…