Bitcoin: Magic internet money

Research Affliliates/Alex Pickard

“‘Know what you are investing in’ is a steadfast, uncontroversial investing adage. Unfortunately, when it comes to bitcoin, this advice is being dangerously overlooked by both novice and seasoned investors. In this article, I seek to set the record straight on what bitcoin was and has become, and what I believe is the biggest risk associated with bitcoin today.”

USAGOLD note:  Revelations from someone who has been involved with bitcoin from its early years – what it really is and where its true value really lies. “It is not a vehicle for investment,” says Pickard, “not a store of value, and not an inflation hedge. BTC is not a capital asset: it does not generate cash flows derived from economic returns on capital. Its extreme volatility invalidates claims of a reliable store of value and calls into question any inflation-hedging properties.”

Repost from 1-15-2021