Mr. Musk, you are wrong…again

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Elon has done it again. In his latest tweet, he has criticized Bitcoin for not being green enough, Proof of Work (PoW) for being wasteful, and the use of carbon fuels for mining, unacceptable. Tesla is also cancelling the option of buying a Tesla using cryptocurrency.

There are many contradictions in his new position. First, he still owns plenty of Bitcoin and so does Tesla. If it’s so bad why not get rid of it?

Second, he is promoting Dogecoin (a fork of Bitcoin made as a joke) How’s that any cleaner?

And third, dirty…


Risk is in the eye of the beholder

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Risk is an interesting subject. We all agree that playing Russian roulette is dangerous, for example, but when it comes to more complex subjects, like investing, most of us get fooled by randomness, cognitive biases, and fear.

Many people still think, in this day and age, that flying is more dangerous than driving despite the mountains of evidence showing the opposite.

We are just not rational animals. We are driven by fear and greed, we suffer from delusions and we are easily influenced by our environment. Yet, we think we are objective, fair, rational, and wise most of the time…


He might be right…

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Nassim Nicholas Taleb, the controversial author of Antifragile, The Black Swan, Skin in the game and Fooled by Randomness, has changed his mind about Bitcoin.

Not so long ago, he recommended having some exposure to crypto in a balanced portfolio. Now, he reckons, it’s too volatile to be a reserve asset or even a hedge against inflation.

What happened there? Why did he change his mind? Should we listen to him now or keep his former advice?

Let’s have a look.

Decentralization

Bitcoin is a decentralized currency with no government, company or institution behind it. It is run by a network…


…or time to buy more?

Image from xataka.com

Elon Musk is quite a character, to say the least. A single tweet can make or break a trend, change people’s minds or send a company into a downward spiral.

He bought Bitcoin when it was $33,000 apiece, sending the price to an All-Time-High. Now, Tesla has sold 10% in order to make some cash, increase profits and prove it as a yield-producing liquid asset according to the official version.

Elon himself did not sell his own, just Tesla’s. Whatever the real reason, financial engineering gets quite complicated at these levels. …


…and he is totally right

Photo from: zephyrnet.com

Warren Buffett is arguably the best investor of all time. He started with zero and became the richest man in the world. Along with Charlie Munger, he has built the biggest investment empire, Berkshire Hathaway. That’s not an easy achievement by any means. Many have tried and failed where he succeeded.

Some of the strategies that made him so successful are value investing, long-term exposure, understanding the industry, and buying when everyone is selling.

He made his money mostly with banks and junk food industries. …


The roadmap ahead

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It’s difficult to escape FOMO in the crypto markets. Everyone and his cousin are selling the family silver in order to get a piece of the cake. So far things are going well, providing they didn’t panic sell at the bottom, but is this sustainable? Can it keep going up forever? Or are we in a bubble that is about to burst?

Let’s see.

Adoption

There are three types of Bitcoiners — individuals, institutions, and miners. Mining Bitcoin is a capital-intensive business done mainly by huge mining farms located anywhere in the world with cheap electricity and/or cold weather. …


And what to do about it

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Since you are reading this, I’m going to assume you are middle class. You went to college, got a white-collar job, and live in the suburbs. You have 1.7 children, a dog, and a Toyota RAV4 hybrid. You are living the dream, aren’t you?

Not quite.

You enjoy some privileges, status, and perks, and follow the rules in order to keep climbing the ladder. …


You might not get a choice

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Cryptocurrencies are taking over the world, slowly but surely. Bitcoin is already the third most valuable currency in circulation after the US$ and the Euro, and this is only the beginning.

The hegemony of the US Dollar and other major currencies is under threat. It’s no wonder that Governments are feeling uneasy about this and get busy devising plans to counteract it.

When unofficial money becomes the de facto choice, the government loses control over the economy, market forces take over, dictating prices, inflation, money supply, interest rates, etc. …


Welcome the New World

Photo by J. Balla Photography on Unsplash

We take for granted that land and property are tangible assets — something you can touch and see — but the idea of property is not as intuitive as we would like to think.

This is how Native Americans viewed land ownership:

Our land is more valuable than your money. It will last forever. It will not even perish by the flames of fire. As long as the sun shines and the waters flow, this land will be here to give life to men and animals. We cannot sell the lives of men and animals; therefore we cannot sell this…


…or is it the end of Turkey?

Photo by Darren Lee on Unsplash

Turkey is in deep shit, to put it bluntly.

The Turkish Lira has been in free fall for weeks, banks don’t have liquidity and the trust in the system is plummeting day by day.

Turkish people are trying to get rid of their worthless Liras before it’s too late. They are buying real estate, euros, gold, and crypto, whatever they can grab but their useless currency.

In an attempt to minimize the bloodbath the government has decided to make it difficult to transact with Bitcoin and other cryptos. …

Alberto Guerrero

Student of life. Trying to make sense of it all, be happy and help others achieve their dreams. Join me at: albertotheauthor@gmail.com

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