Top Tweets for #WeekVanHetGeld

The Reasons for Not Investing in Bitcoin Are Growing Thin The list of objections to bitcoin keeps shrinking. Let me go through them. "Bitcoin has no intrinsic value." If that's the case, why are you holding euros and dollars in your bank account and accepting them for payment every day? But more importantly, how does a growing network, built on proven scarcity and proven technology, not have value? The S&P 500 is dominated by companies monetizing networks. "Bitcoin has no cash flows." How is your bond portfolio doing in real terms? Generating cash flows says nothing about real returns, purchasing power, or the protection of wealth. A store of value does. Arguably, bitcoin still has to prove that over time. "Bitcoin is too volatile." Annualized volatility is down to 46%. Still high, but no longer extraordinarily so. More importantly, its diversification benefits are so significant that despite volatility bitcoin improves overall portfolio characteristics. . "Bitcoin is the NASDAQ on steroids." Do the math. Weekly return correlations are far lower than everyone assumes. And while we're at it, why are high-yield bonds considered a separate asset class when their correlation with stocks runs north of 70% on average, and hits 100% whenever volatility spikes? "Bitcoin doesn't fit my mix." A simple, objective mean-variance analysis shows that bitcoin can account for up to 9% of a portfolio (and more in some cases). Combined with gold, it pushes out bonds, which have destroyed purchasing power for over a decade. Yet bonds get 20–50% allocation in a traditional multi-asset portfolio, while bitcoin gets zero. That feels like inertia. "Bitcoin is too small." Its market cap should be much higher, if that's your concern. But apart from that, bitcoin has ETFs, futures, and other derivatives enhancing liquidity. Solid custodians are popping up everywhere, and bitcoin back-lending is spiking, confirming bitcoin has become a serious asset class to many ‘sophisticated’ investors. "Bitcoin is for speculators wanting to get rich quick." Absolutely right for part of the bitcoin investors. But what would you call the traders buying one-day Tesla options and the likes? "Quantum computing will send it to zero." I am not the expert here, but if I understand correctly, the latest thinking is that Bitcoin's software could be updated to address this, potentially without even a fork. Meanwhile, how are the quantum defenses holding up at your government, your hospital, your insurer, your telecom provider? The hacks are everywhere.