Re: Lose all your capital fast, with MatTheCat and his TA 101A!
So MatTheCat is planning to enter the stock market on the verge of the biggest stock collapse in world history. Two thumbs up.
...and how do you think that Bitcoin is going to fare, during the 'biggest stock market collapse' in world history?
If the nominal value of bits of paper that represent shares in actual companies that produce wealth are all set to evaporate, what do you think is going to happen to the value of digital tokens, backed by the square root of fk all?
"argghhh....our hedge fund is cratering.....quick, charge into Bitcoin!!"
lol
I've explained it a million times. In a scenario of liquidity crunch, all money just flees to USD cash, but this time is different (as was 2008 if they had not received a bail out). The smart move would be going to cash, but when you have cascading deflationary collapse of debt-based fiat instruments, the banks become insolvent and you get Cyprused with a haircut or permanent bank holiday. Therefore, going cash is not a good move and things like Bitcoin and metals are really the only things that make sense.
Bitcoin has no counterparty risk. The goal is to acquire whatever the most liquid asset is you can find with the least counterparty risk. Bitcoin and metals both fit this equation. Paper cash also does, but when you're dealing with things like institutional bank insolvency, most people prefer alternatives that aren't connected to that system at all because you can not only preserve your wealth, but profit at the same time.