Ryan Grim on Warpcast

Ryan Grim pfp

Came here to learn more about crypto so I can more effectively advocate for its abolition before it ruins everybody here and the rest of us along with it

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bradq pfp

welcome! how can we help???

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Ryan Grim pfp

Help me out: crypto is supposed to be a hedge against a volatile world but it seems more volatile than anything else and if there’s anything predictable, it moves with the nasdaq. What am I missing?

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ted (not lasso) pfp

ted (not lasso)

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Zach pfp

FWIW: price volatility isn't the same as system volatility. worth noting that the first/only loans FTX paid back while in the middle of its meltdown in 2022 are the overcollateralized loans they had on DeFi protocols, bc if they didn't they would've lost _more_. The protocols themselves, when they're actually onchain (vs manipulatable moon math on opaque databases like Celcius, Terra/Luna etc), absorb hundreds of billions of losses without failing. I realize this is 1) highly specific and 2) sounds like its splitting hairs re: "no true scottsman" but idk, as someone who's been in the space, reads the chain etc, I do feel like there's a difference. I (still) care about the latter. I'm more and more disillusioned/disinterested in the former (prices etc).

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Sterling Schuyler pfp

Sterling Schuyler

for some, crypto's volatility is a refuge from the volatility of their own currency or situation (see article). for others, crypto is a different kind of tool. for example, i can use it to get paid by international businesses. my client couldn't transfer funds from their Dutch bank account (bunq) to my US bank account (mercury). when i reached out to my bank asking why, they said "It appears that their bank my not be able to support payments to First National Bankers bank." we are two registered businesses in wealthy, stable democracies with friendly relations. why can't our payments go directly to one another? why are we subject to the whims of the relationships between banks (let alone a third party serving banks)? https://sterlingschuyler.substack.com/p/an-update-how-cryptocurrency-can

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Colin Johnson 💭 pfp

Colin Johnson 💭

Crypto is a hedge against an authoritarian world, not a volatile one. Can you imagine any other path for assets that completely subsume existing payments infrastructure to be introduced? Volatility is guaranteed, to start. I’ll be much happier to hold BTC than whatever the dollar ends up being after Trump.

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Roberto Bayardo 🎩 pfp

Roberto Bayardo 🎩

The "inflation hedge" argument is a bitcoin maxi talking point that is mostly nonsense outside of perhaps extreme hyperinflation scenarios. Crypto is a speculative risk asset.

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polymutex pfp

Conflating price volatility with system volatility. Same type of mistake as those who believe risk is measured by the standard deviation of price movements. Too narrow a lens.

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Wilson Cusack pfp

"Crypto" is many things, some of which are hedges. You could say BTC is a store of value hedge. It's done very well over the last 10y. Then there's also the hedge against Nasdaq Exchange deciding you can't trade there any more, see DeFi.

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amc pfp

BTC is a hedge on unchecked fiat currency printing/inflation. Atm actions being taken are deflationary (ie spending cuts, and a lot of noise about further cuts, 3% debt/gdp, etc). Can’t tackle this level of debt strictly with austerity, loose monetary policy and money printing is coming

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✳️ dcposch pfp

stablecoins are the future. stables are an escape against bad currencies and low quality banking systems. very effective in much of the global south & growing fast.

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bradq pfp

I wouldn't define crypto as a hedge against a volatile world. It's the frontier of a possible foundational shift in tech & money. It's the earliest days. Nobody went exploring on any frontier b/c it was safe, comfortable, and less volatile.

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Sean Wince 🎩 pfp

Sean Wince 🎩

the "hedge against a volatile world / hedge against inflation" narrative is not accurate or helpful, it was invented by bitcoiners who abandoned the mission of P2P electronic cash in favor of "digital gold" The real selling point here is having a value transfer system that is fully transparent and programmable with apps and new financial primitives Same way the internet is an open protocol that allowed thousands of valuable websites and apps to be built on top of it, Ethereum and other blockchains allow near limitless possibilities of creative apps to be built that use money in new ways that are also transparent in how they work That's also the value of Farcaster - open and permissionless protocol that is allowing apps to be built on top of an open social graph

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artlu 🎩 pfp

do you mean crypto's function, or the price of some things labelled "crypto" that people want to sell you?

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Melissa Burr 🍓 pfp

Melissa Burr 🍓

Next time you try to withdraw over $4000 from your own bank that houses YOUR money, come back here and let us know your experience. Crypto is supposed to hedge against the US's financial irresponsibility. Whether that ball drops this year or in 10 years, that's one thing we CAN rely on. There's no one from crypto that is accumulating debt at the alarming rate the US is (yet anyhow 💀). That's the beauty of an asset born out of decentralization. Gm and welcome to farcaster!

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0xJoshua.eth🎩 pfp

0xJoshua.eth🎩

Crypto only becomes a successful hedge bet if the entire banking system completely collapses. Most of us are working toward a peaceful transition from the status quo Right now, most view crypto as a speculative gamble, and those are the first chips to be taken off the table during times of fear, uncertainty, and doubt

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Mataverse pfp

It’s not only about price. Tourists have allowed this narrative to perpetuate unchecked because the law abiding industry participants were pushed to the sidelines for people with questionable morals.

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Diligent Leopard pfp

Diligent Leopard

@diligentleopard.eth

BTC is an emerging store of value and a hedge against Fiat currency debasement Zooming out you can observe thats its average return and volatility are slowly heading lower

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Fran pfp

That we are all degenerate gamblers and the volatility is a feature not a bug.

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Maretus pfp

Crypto was never supposed to be a hedge on volatility. It’s a hedge on inflation (in coins with limited supplies) - but those are 2 very different things. And if look back further than a couple years, Bitcoin has been the single biggest hedge against inflation the world has probably ever seen.

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John pfp

volatile against what?

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