We tend to get a little tribal and cling to the limited understanding we can gather up occasionally when it comes to investing. For the most part, we’re in it for ‘number go up’. What can we invest in that will rise in value so we have more in the future than what we have today.
Yes we’d like to think we’re ethical investors, saving the environment and fighting social injustice through passive index funds… we’ve all eaten that 3 am kebab though. We’ve all chosen the cheaper import rather than the locally produced – We’ve ignored people until we want something out of them.
We’re imperfect investors because we’re imperfect people, and even when it’s all mapped out before us, we make choices out of fear and greed. We invest based on what groups of people say, and we pursue ends, regardless of our purpose.
For over 5 years, talking about bitcoin has likely lost me credibility in traditional finance circles. It’s certainly cost me the opportunity of making money out of this podcast also – I can’t help it – Popularity, profit, and pandering to pre-conceived notions isn’t my style. Cutting through the pretense and having the conversations that can really build wealth for the everyday person – that’s my style. This involves having conversations with people I know you may not agree with, not because they’re right, but because it’ll help you think for yourself – a skill that’s getting harder and harder to hone. Today, for those who believe bitcoin is just about making money, there’s good news, and some bad news too. The bitcoin ETFs and the halving this year could result in some strong price action – the bad news – bitcoin isn’t about the price action.
In this episode, I’m having a conversation with Konrad Hurren, a bitcoin economist from the Austrian School of understanding. In this episode, which may be slightly above beginner level for some, we’re talking about the bitcoin ETF, the halving cycle, and some of the things that may affect price over 2024.
I should explain a bit about what an ETF is, however: an exchange-traded fund. An exchange-traded fund is a way to invest in a basket or group of investments all at once. You may choose to have a fund that’s focused all on technology, on smaller companies, international shares, or dividend stocks – you name it, there’s something for everyone. Instead of going out and buying all the individual investments, one purchase does it all. There’s no need for complicated share registries, separate tax reports or rebalancing; it’s all packaged up into one simple parcel, A bitcoin ETF is a bit simpler – instead of investing in a bunch of companies all at once, there’s only one thing in there – bitcoin. No need to set up a digital wallet – or set an account with a crypto retailer. If you like, you could use an online brokerage and purchase a bitcoin ETF just like you would for the S&P 500 index fund. Why is this a big deal? Well, for the everyday investor interested in money go up – here you can benefit from the price appreciation of bitcoin without the complications.
The process of getting a bitcoin ETF has been a long and arduous one – As you’ll hear today, there’s more than a few hints that delays and even purposeful manipulations have all been part of the plan too – almost as if traditional finance wants to suppress the true price of bitcoin for as long as possible. The FTX and Sam Bankman Fried story, the false announcements coming out of the SEC of an approval, and even the way the greyscale bitcoin trust is releasing bitcoin supply into the market , all suggest traditional finance has only reluctantly welcomed bitcoin into the fold.
I’d expect mainstream financial advisers to start promoting bitcoin now there’s a revenue model behind it. You’re going to see more ads – you’re going to see fund managers all of sudden trying to make you forget how hard they railed against it previously. They can now see the dollar signs, and they trust you will too – If you’re looking for more than just number go up though, and with a form of hard money that you can self-custody, I’d very much recommend you think about this, do consider doing the extra research to set up a digital wallet, and hold bitcoin outside of ETF’s too.
For further reading:
US M2 FRED – https://fred.stlouisfed.org/series/WM2NS
ECB M2 – https://tradingeconomics.com/euro-area/money-supply-m2
Yield curve FRED – https://fred.stlouisfed.org/series/T10Y2Y
How to take self custody step by step article written by kiwis for kiwis – https://kiwibitcoinguide.org/articles-and-guides/how-to-set-up-a-bitcoin-wallet-and-buy-your-first-bitcoin-for-beginners/
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