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(Marketwatch)   Area crazy person who happens to have $70 billion under management: "Bitcoin will replaces bonds"   (marketwatch.com) divider line
    More: Facepalm, Monetary policy, Inflation, Federal Reserve System, Investment, ARK Invest's Cathie Wood, Gold standard, Central bank, new asset class  
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356 clicks; posted to Business » on 25 Feb 2021 at 2:05 PM (10 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



40 Comments     (+0 »)
View Voting Results: Smartest and Funniest
 
2021-02-25 1:32:15 PM  
Yeah, no.
 
2021-02-25 1:33:13 PM  
Bonds pay interest.  Bitcoin does not.
 
2021-02-25 1:38:50 PM  
Can I buy hookers and cocaine with bonds?

I rest my case, gentlemen.
 
2021-02-25 1:53:14 PM  
There are already large companies that allow you to borrow against your bitcoin as long as you over collateralize against the loan. They earn much higher rates of interest than any bond. That chokes supply of bitcoin causing prices to rise which is better for the lender. Still in infancy.

Once it matures, I can really see it. Bonds yield dog shiat. If there is a flow of money from bonds itll ripple through stonks as well and assets get repriced. Down.

/second inning
//gobble gobble
 
2021-02-25 2:02:43 PM  
Why would you listen to the opinion of someone who sits on a stool?
 
2021-02-25 2:06:39 PM  

AsparagusFTW: Bonds yield dog shiat


Bitcoin yields literally nothing.
 
2021-02-25 2:08:52 PM  

syrynxx: Why would you listen to the opinion of someone who sits on a stool?



I only take financial advice from people who sit on chairs like this:

Fark user imageView Full Size

It says, "Hey' I'm approachable, but I'm also a bit unconventional."

 
2021-02-25 2:09:50 PM  

OptionC: Bonds pay interest.  Bitcoin does not.


Zero-coupon bonds do exist.
 
2021-02-25 2:10:24 PM  

Ivo Shandor: OptionC: Bonds pay interest.  Bitcoin does not.

Zero-coupon bonds do exist.


Zero coupon bonds still yield at maturity
 
2021-02-25 2:10:53 PM  

Rapmaster2000: syrynxx: Why would you listen to the opinion of someone who sits on a stool?

I only take financial advice from people who sit on chairs like this:
[Fark user image 300x467]
It says, "Hey' I'm approachable, but I'm also a bit unconventional."


Good stragegy, but does he have one of those cellular telephones I have been hearing about?
 
2021-02-25 2:11:03 PM  

OptionC: Bonds pay interest.  Bitcoin does not.


Do they though?  Negative interest bonds are about the best you can get in some places in the world.
https://corporatefinanceinstitute.com​/​resources/knowledge/credit/negative-yi​elding-bonds/

The inflation rate will probably outpace bond yields for the next few years.

And while bitcoin doesn't pay interest, it historically outpaces inflation.  And there are plenty of crypto plays that do pay 'interest' after a fashion (Staking and Defi).
 
2021-02-25 2:11:46 PM  

OptionC: Ivo Shandor: OptionC: Bonds pay interest.  Bitcoin does not.

Zero-coupon bonds do exist.

Zero coupon bonds still yield at maturity


Borrow half a BTC, agree to return a full BTC 3 years later. Imputed rate is 26%.
 
2021-02-25 2:11:56 PM  
Never take financial advice from Fark Olds.  They believe in the fallacy of tradition.  They don't understand the logic of novelty.
 
2021-02-25 2:16:20 PM  

AsparagusFTW: OptionC: Ivo Shandor: OptionC: Bonds pay interest.  Bitcoin does not.

Zero-coupon bonds do exist.

Zero coupon bonds still yield at maturity

Borrow half a BTC, agree to return a full BTC 3 years later. Imputed rate is 26%.


That is not "Bitcoin replacing bonds", that is "denominating a bond in Bitcoin"

Also, that would be completely farking insane for both parties given how volatile bitcoin is.
 
2021-02-25 2:18:45 PM  

OptionC: AsparagusFTW: OptionC: Ivo Shandor: OptionC: Bonds pay interest.  Bitcoin does not.

Zero-coupon bonds do exist.

Zero coupon bonds still yield at maturity

Borrow half a BTC, agree to return a full BTC 3 years later. Imputed rate is 26%.

That is not "Bitcoin replacing bonds", that is "denominating a bond in Bitcoin"

Also, that would be completely farking insane for both parties given how volatile bitcoin is.


That is why they require over collateralization...
 
2021-02-25 2:33:06 PM  

OptionC: Ivo Shandor: OptionC: Bonds pay interest.  Bitcoin does not.

Zero-coupon bonds do exist.

Zero coupon bonds still yield at maturity


And a Bitcoin "yields" when you sell it. The lack of interest payments isn't the main issue.

The main difference is that bonds have a fixed final value (minus any government "haircuts" you might encounter along the way), while the future value of a Bitcoin is unknown. Any increase in its value comes from hoarding a scarce resource and hoping that enough other people will still want it at any price.
 
2021-02-25 2:33:25 PM  
Well, BitCoin's asset class is, phsyically speaking, gambling on the perceived value of burning limited fuel. Like, it burns a metric farkload of fuel. That's all it does - increase entropy on the planet Earth. And given the climate changes happening, we can't afford an asset class that is purely a form of monetizing entropy.

All other assets also increase entropy, and can be measured as value in the form of heat (calories produced by calories spent on labour, etc.). But BitCoin produces nothing else; it is 100% entropy.
 
2021-02-25 2:35:32 PM  

Ivo Shandor: And a Bitcoin "yields" when you sell it.


The important part of a bond is that the yield is written into the bond contract.  Comparing that with "buying and selling bitcoin (or stocks or chickens or whatever)" is extremely disingenuous and the lady in TFA knows that.
 
2021-02-25 2:37:17 PM  

OptionC: Bonds pay interest.  Bitcoin does not.


Bonds pay craptastic interest for anything above BBB for the investor class. Even institutional investors cling to them because all the other fixed products have been in the toilet for better than a decade.
 
2021-02-25 2:37:30 PM  

OptionC: AsparagusFTW: Bonds yield dog shiat

Bitcoin yields literally nothing.


Except gains, especially lately. BTC is nearly $50,000 at the moment and was up past $55k last week.

/Sold @ 40k moment
 
2021-02-25 2:42:50 PM  

Hoblit: OptionC: AsparagusFTW: Bonds yield dog shiat

Bitcoin yields literally nothing.

Except gains, especially lately. BTC is nearly $50,000 at the moment and was up past $55k last week.

/Sold @ 40k moment


The important part of a bond is that the yield is written into the bond contract.

Ken VeryBigLiar:
OptionC: Bonds pay interest.  Bitcoin does not.

Bonds pay craptastic interest for anything above BBB for the investor class. Even institutional investors cling to them because all the other fixed products have been in the toilet for better than a decade.


The important part of a bond is that the yield is written into the bond contract.

Lord Bear:
OptionC: Bonds pay interest.  Bitcoin does not.

Do they though?  Negative interest bonds are about the best you can get in some places in the world.
https://corporatefinanceinstitute.com/​resources/knowledge/credit/negative-yi​elding-bonds/

The inflation rate will probably outpace bond yields for the next few years.

And while bitcoin doesn't pay interest, it historically outpaces inflation.  And there are plenty of crypto plays that do pay 'interest' after a fashion (Staking and Defi).


The important part of a bond is that the yield is written into the bond contract.
 
2021-02-25 2:46:42 PM  

OptionC: Ivo Shandor: And a Bitcoin "yields" when you sell it.

The important part of a bond is that the yield is written into the bond contract.  Comparing that with "buying and selling bitcoin (or stocks or chickens or whatever)" is extremely disingenuous and the lady in TFA knows that.


She's not even making a statement that bold.  She's just saying "A lot of people do fixed income investing... how about some Bitcoins."  It's not even replacing bonds with Bitcoins. It's just saying that Bitcoins are a thing you can invest in.  Yes, we all know that.

She might as well have mentioned gold or real estate or handjobs, all of which have value and which you can invest in, but aren't bonds.
 
2021-02-25 2:51:27 PM  

OptionC: Hoblit: OptionC: AsparagusFTW: Bonds yield dog shiat

Bitcoin yields literally nothing.

Except gains, especially lately. BTC is nearly $50,000 at the moment and was up past $55k last week.

/Sold @ 40k moment

The important part of a bond is that the yield is written into the bond contract.

Ken VeryBigLiar: OptionC: Bonds pay interest.  Bitcoin does not.

Bonds pay craptastic interest for anything above BBB for the investor class. Even institutional investors cling to them because all the other fixed products have been in the toilet for better than a decade.

The important part of a bond is that the yield is written into the bond contract.

Lord Bear: OptionC: Bonds pay interest.  Bitcoin does not.

Do they though?  Negative interest bonds are about the best you can get in some places in the world.
https://corporatefinanceinstitute.com/​resources/knowledge/credit/negative-yi​elding-bonds/

The inflation rate will probably outpace bond yields for the next few years.

And while bitcoin doesn't pay interest, it historically outpaces inflation.  And there are plenty of crypto plays that do pay 'interest' after a fashion (Staking and Defi).

The important part of a bond is that the yield is written into the bond contract.


%0 coupon would be written in the bond contract. But imputed rate would be calculated....
 
2021-02-25 2:53:29 PM  

Hoblit: OptionC: AsparagusFTW: Bonds yield dog shiat

Bitcoin yields literally nothing.

Except gains, especially lately. BTC is nearly $50,000 at the moment and was up past $55k last week.

/Sold @ 40k moment


So it varies 10% within a week?  I wouldn't like to see the bond that does that.
 
2021-02-25 3:02:02 PM  
All I really know about Bitcoin is that at least once, somebody closed something called a wallet or an exchange and everybody who had Bitcoins there was S.O.L.

Has that problem been fixed?
 
2021-02-25 3:02:57 PM  

AsparagusFTW: OptionC: Hoblit: OptionC: AsparagusFTW: Bonds yield dog shiat

Bitcoin yields literally nothing.

Except gains, especially lately. BTC is nearly $50,000 at the moment and was up past $55k last week.

/Sold @ 40k moment

The important part of a bond is that the yield is written into the bond contract.

Ken VeryBigLiar: OptionC: Bonds pay interest.  Bitcoin does not.

Bonds pay craptastic interest for anything above BBB for the investor class. Even institutional investors cling to them because all the other fixed products have been in the toilet for better than a decade.

The important part of a bond is that the yield is written into the bond contract.

Lord Bear: OptionC: Bonds pay interest.  Bitcoin does not.

Do they though?  Negative interest bonds are about the best you can get in some places in the world.
https://corporatefinanceinstitute.com/​resources/knowledge/credit/negative-yi​elding-bonds/

The inflation rate will probably outpace bond yields for the next few years.

And while bitcoin doesn't pay interest, it historically outpaces inflation.  And there are plenty of crypto plays that do pay 'interest' after a fashion (Staking and Defi).

The important part of a bond is that the yield is written into the bond contract.

%0 coupon would be written in the bond contract. But imputed rate would be calculated....


You could write a bond that pays its coupons in chickens if you want, it's still a bond if there is contractual language describing the yield.  The contract is the important part because it allows better convergence on value and if everyone agrees that it is going to pay at maturity you can treat it like a long version of cash.  A bond that pays in BTC defeats that to a large degree but I'm sure there is a market for it.

What wonderous financial innovations will the crypto world discover next?
 
2021-02-25 3:07:29 PM  
Isn't this the crazy lady with like a $4000 target price for TSLA and $1,000,000 for Bitcoin?

And people actually trust her with their money in the long term?

LOL ok
 
2021-02-25 3:09:36 PM  

Glorious Golden Ass: All I really know about Bitcoin is that at least once, somebody closed something called a wallet or an exchange and everybody who had Bitcoins there was S.O.L.

Has that problem been fixed?


Sort of.  You can have your own wallet, and then it's your own problem if you forget your password or someone physically steals it.

You can think of bitcoin as a precious heirloom.  You can keep it in a safety deposit box in a bank, or in a safe in your house, or elsewhere.  Each has its inherent risks and mechanisms to keep it safe.  Early bitcoin 'Banks' were often pretty insecure and sketchy.  They are slightly better now, but it is better to keep things in your own 'safe' in most cases.
 
2021-02-25 3:14:59 PM  

ArkPanda: Hoblit: OptionC: AsparagusFTW: Bonds yield dog shiat

Bitcoin yields literally nothing.

Except gains, especially lately. BTC is nearly $50,000 at the moment and was up past $55k last week.

/Sold @ 40k moment

So it varies 10% within a week?  I wouldn't like to see the bond that does that.


Me either.
 
2021-02-25 3:21:32 PM  

NewportBarGuy: Isn't this the crazy lady with like a $4000 target price for TSLA and $1,000,000 for Bitcoin?

And people actually trust her with their money in the long term?

LOL oK


Tesla pre-split was roughly 2,200.  Before its recent slide it hit 872.   Pre-split 4,000 isn't crazy talk.
 
2021-02-25 3:27:43 PM  

SirEattonHogg: NewportBarGuy: Isn't this the crazy lady with like a $4000 target price for TSLA and $1,000,000 for Bitcoin?

And people actually trust her with their money in the long term?

LOL oK

Tesla pre-split was roughly 2,200.  Before its recent slide it hit 872.   Pre-split 4,000 isn't crazy talk.


Are you out of your mind? $500 pre split is f*cking insane. There is absolutely no metric to value them at that level at all. Even if you factor in Space X at current values.

It was pure speculation. Great company, love what they do, but 1,600 times forward earnings is goddamn idiotic.

3,000 times earnings (which is what she's calling for) should get you committed to a looney bin.
 
2021-02-25 3:42:52 PM  

AsparagusFTW: There are already large companies that allow you to borrow against your bitcoin as long as you over collateralize against the loan. They earn much higher rates of interest than any bond. That chokes supply of bitcoin causing prices to rise which is better for the lender. Still in infancy.

Once it matures, I can really see it. Bonds yield dog shiat. If there is a flow of money from bonds itll ripple through stonks as well and assets get repriced. Down.

/second inning
//gobble gobble


Bonds are a safe place to park money, not a money making scheme
 
2021-02-25 3:48:44 PM  
Currency is not an investment.  It's a speculation.
 
2021-02-25 3:50:54 PM  

zeroman987: AsparagusFTW: There are already large companies that allow you to borrow against your bitcoin as long as you over collateralize against the loan. They earn much higher rates of interest than any bond. That chokes supply of bitcoin causing prices to rise which is better for the lender. Still in infancy.

Once it matures, I can really see it. Bonds yield dog shiat. If there is a flow of money from bonds itll ripple through stonks as well and assets get repriced. Down.

/second inning
//gobble gobble

Bonds are a safe legally distinct place to park money, not a money making scheme


There are bonds that pay wild returns where you will almost certainly lose your ass because the issuer runs out of money but the bond contract can make those valuable for Apollo Management and their ilk by putting them at the head of the table in bankruptcy court.
 
2021-02-25 4:42:42 PM  

Rapmaster2000: Never take financial advice from Fark Olds.  They believe in the fallacy of tradition.  They don't understand the logic of novelty.


LOL P/E = Pampers/Exlax ratio

Stupid olds
 
2021-02-25 5:41:03 PM  
You know how many stocks you could have got rich off of with what you found in your couch and knew which direction they would go and when?

Literally any of them.

Bitcoin is no different, except a company actually has tangible shiat and plans.
 
2021-02-25 6:47:09 PM  

AsparagusFTW: Borrow half a BTC, agree to return a full BTC 3 years later. Imputed rate is 26%.


Or, instead of taking financial advice from Fark, I could burn half my money and wipe my ass with the other half.
 
2021-02-25 8:51:16 PM  
Have y'all considered investing in my sh*ts? They take a while to produce and there is a scarcity to them in that I'll die one day, so they can only appreciate in value.
 
2021-02-26 7:01:19 AM  

IAmRight: Have y'all considered investing in my sh*ts? They take a while to produce and there is a scarcity to them in that I'll die one day, so they can only appreciate in value.


Merda d'artista, by Piero Manzoni.
 
2021-02-26 7:50:44 AM  

OptionC: Bonds pay interest.  Bitcoin does not.


Some newer altcoins do allow staking, which pays interest, kind of.
 
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