I'd love your opinion on Bitcoin income etfs. Its a rapidly expanding space. My favorites are btci and bity. I think I'd rather own them through a Bitcoin winter than straight BTC. Could be a good topic for your next post. Thanks.
Generally speaking I’m not interested in income, and I’m much more focused on total return (appreciation) and creating “income” through selling or other methods. I wrote about this here: https://firebtc.substack.com/p/coal-in-your-stocking
I’m curious: why did you specify that you’d rather own these in a bear market?
Thanks for sharing this article. MMM's comparison of the subjective value of bitcoin and dice is wrong, but it gave me a new way to explain the bitcoin mining process which is like:
64, sixteen-sided dice are tossed over and over, by people all over the world, in search of fees and prizes. If the first 20 of your dice lan on the number zero and is less than the previous winning roll, you win. Currently this is 3.125 bitcoin and any fees paid.
Ever 2016 winning rolls, the difficulty udjusted based on the number of players. If less people play, maybe you only need to roll 19 zeros in a row. If more people play, perhaps you need 21 rolls of zero in a row. The goal is to keep the pace of the game set at finding a new winner every 10 minutes on average.
Every 210,000 winning rolls, the block subsidy(currently at 3.125) is cut in half. That takes about 4 years and 3 days.
These dice rolls create a timestamp server which uses the same math cybersecurity professionals use to verify data to verify digital signatures that can only be signed if the signer has a huge, secret, random number. Every 10 minutes(on average) these signatures requiring secret passwords to make changes to the distributed network are linked together. This is commonly known as a blockchain, but Satoshi called it a timechain.
So yeah, bitcoin is like those kind of dice that create a commonwealth in cyberspace where anyone is free to join, regardless of their race, creed, nationality, or even their identity. If you get sent to the Gulags, a concentration camp, or internment camp...Your oppressors will confiscate your property.
But if you get out and can remember 12 words, they cannot take it.
The value of that has nothing to do with dice rolls.
Thanks so much for this post, I strongly agree with your perspective here. Re: Bitcoin Income ETFs, you and others might be interested in fellow Bitcoiner Brian Harrington’s take on them if you haven’t already seen it— https://youtu.be/37hxk2wR7FY?si=YVnYWtvTKW8M73LA
(Hope it’s ok I’m linking to a specific video where he highlights them), thank you for all you do for the community!
With regard to the bitcoin dividend ETFs… My general view is that it’s better to invest solely for total returns instead of income. Income feels safer, but I think that it’s all in our heads. Check out a previous post I did on this here: https://firebtc.substack.com/p/coal-in-your-stocking
These are incredible to watch. The mental gymnastics required to stay ignorant is something to witness. He may be right but not willing to admit he MAY be missing something is just pure problem of Ego.
I'd love your opinion on Bitcoin income etfs. Its a rapidly expanding space. My favorites are btci and bity. I think I'd rather own them through a Bitcoin winter than straight BTC. Could be a good topic for your next post. Thanks.
Generally speaking I’m not interested in income, and I’m much more focused on total return (appreciation) and creating “income” through selling or other methods. I wrote about this here: https://firebtc.substack.com/p/coal-in-your-stocking
I’m curious: why did you specify that you’d rather own these in a bear market?
Well its a discussion we can continue over a private chat so we can discuss that
Thanks for sharing this article. MMM's comparison of the subjective value of bitcoin and dice is wrong, but it gave me a new way to explain the bitcoin mining process which is like:
64, sixteen-sided dice are tossed over and over, by people all over the world, in search of fees and prizes. If the first 20 of your dice lan on the number zero and is less than the previous winning roll, you win. Currently this is 3.125 bitcoin and any fees paid.
Ever 2016 winning rolls, the difficulty udjusted based on the number of players. If less people play, maybe you only need to roll 19 zeros in a row. If more people play, perhaps you need 21 rolls of zero in a row. The goal is to keep the pace of the game set at finding a new winner every 10 minutes on average.
Every 210,000 winning rolls, the block subsidy(currently at 3.125) is cut in half. That takes about 4 years and 3 days.
These dice rolls create a timestamp server which uses the same math cybersecurity professionals use to verify data to verify digital signatures that can only be signed if the signer has a huge, secret, random number. Every 10 minutes(on average) these signatures requiring secret passwords to make changes to the distributed network are linked together. This is commonly known as a blockchain, but Satoshi called it a timechain.
So yeah, bitcoin is like those kind of dice that create a commonwealth in cyberspace where anyone is free to join, regardless of their race, creed, nationality, or even their identity. If you get sent to the Gulags, a concentration camp, or internment camp...Your oppressors will confiscate your property.
But if you get out and can remember 12 words, they cannot take it.
The value of that has nothing to do with dice rolls.
Love this, although I think 256 coin tosses is an even better analogy!
Hi Trey,
Thanks so much for this post, I strongly agree with your perspective here. Re: Bitcoin Income ETFs, you and others might be interested in fellow Bitcoiner Brian Harrington’s take on them if you haven’t already seen it— https://youtu.be/37hxk2wR7FY?si=YVnYWtvTKW8M73LA
(Hope it’s ok I’m linking to a specific video where he highlights them), thank you for all you do for the community!
Thanks Alexis!
I love what Brian does and I actually spoke to him on the Unchained podcast fairly recently. You should check it out here: https://youtu.be/K2Z_yJr_-_I?si=pGYnzZCx-KqJzeiJ
With regard to the bitcoin dividend ETFs… My general view is that it’s better to invest solely for total returns instead of income. Income feels safer, but I think that it’s all in our heads. Check out a previous post I did on this here: https://firebtc.substack.com/p/coal-in-your-stocking
These are incredible to watch. The mental gymnastics required to stay ignorant is something to witness. He may be right but not willing to admit he MAY be missing something is just pure problem of Ego.
Such a jumbled mess of a response 🤣