TeeBone
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April 29, 2014, 05:15:20 AM

It's based on Austrian Business Cycle Theory. http://en.wikipedia.org/wiki/Austrian_business_cycle_theory  Bitcoins need to flow from the people who use them less productively to the people who use them more productively. You can't have sustainable growth when incompetents control all the capital.

Okay, now that's one of the most absurd misapplications of business cycle theory that I've ever seen.


Is it? Who owns the most Bitcoins right now? Capitalists with experience in wealth creation outside of Bitcoin? No. It's largely people like me who bought them by maxing out credit cards. So how do capitalists acquire capital? Do they enrich reckless speculators or wait until the speculators are forced to partially or completely liquidate? 

I'm not saying I know that a sufficient number of coins hasn't already changed hands. That's possible, but what's certain is that selling pressure continues until all the people with the need to sell have sold. The people with the need to sell are people with negative cash flow outside of Bitcoin appreciation.

Is your capital structured is such a way that time is your friend or your enemy? If you are positioned well, you shouldn't care if the market goes up down or sideways.

Post of the month.

Every newjack should heed this advice if long-term success is your goal. Not just for btc, but overall investing.