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Getting Slaughtered

My portfolio is getting slaughtered today. I’m up a ton over the year but today and yesterday I am down A LOT of money. It’s kind of awesome. This is what true price discovery looks like. If the S&P goes down 7.5% the markets get frozen. If it goes down 15% the markets close for the day. If bitcoin goes down 25% in a day it’s just getting started. I love it man. It’s clear if your level headed and can stomach disgusting amounts of volatility there’s money to be made.

There’s a lot of criticisms about bitcoin. They’re all wrong. Period. People with open minds who truly go down the Bitcoin rabbit hole become converted. If you don’t it’s because your mind is working under false philosophical presumptions. You’re adhering to inflationist mythology. You’ve been told reasons why the money supply has to grow to facilitate growth. That entrepreneurs won’t take on risk unless that risk is disconnected from the consequences. That a society with a high savings rate is actually a poor society. These ideas are obviously false but very smart people support these ideas because they were educated and/or paid by other inflationists.

There is no finite supply of wealth. If there was a finite supply of wealth we would have the same amount of wealth in today’s economy as cavemen. This isn’t the case. Wealth accumulation occurs when actors in an economy lower their time preference and combines their capital with their labor, in any ratio. The example commonly used is a caveman using his time to build a fishing rod as opposed to standing in a river and fishing without the rod. Building the rod takes longer than another caveman going to fish without one (and you don’t end up with any fish for simply building a rod), but that initial time investment will allow that caveman to acquire more fish in less time going forward. The caveman with the rod is now wealthier and took part in an entrepreneurial act.

Looking at the price of Bitcoin is incredible. My robinhood portfolio looks like a massacre when I look at the weekly chart but if I zoom out the tiniest bit to a month or 3 month charts it looks glorious. Just have to keep that in mind. There was a lot of FUD going on about how Tether was issuing unbacked USDT’s and that was propping up the price of Bitcoin. It looks like that issue was solved this morning but I’m sure the Q’Anon gold bugs will point out why the settlement actually didn’t solve anything.

There’s a group of people on the internet who are miserable because they’ve been looking at the price of BTC for 8 years now and telling their followers why it’s a bubble and it won’t work. Bitcoiners hold the same exact macroeconomic views as them and is the perfect tool to solve the problems they’re concerned with yet they will continue to cling on to their gold and silver rocks and read zero hedge patiently waiting for the apocalypse. “Quantum computing will compromise all the private keys” “A transaction takes almost half an hour to settle” “There is no intrinsic value to computer code”. These are all wrong and or dumb but I don’t have the time or the patience to go through all of them. Most people who recite these are pessimists and actively avoiding joy and happiness. Bitcoin “crashed” to 48k this morning and all the goldbugs come out for a victory lap. Gold was priced at $35 an ounce before the complete separation of gold and dollars in 1971 and is around $1750 today (February 2021). It’s not even worth comparing to Bitcoin.

Some people are miserable and want you to be miserable also. Ignore them.