The idea of varions collaps in the sense that bitcoin is special and sos currency because it has no fundamental value. The fact that big coins supply is effectively locked is a critical aspect of what allows it to become, in lily's words, a sustainable bubble. You don't have that mechanical pathway through which you can get supply,. just continuing to grow and grow and grow until you tap out and the price starts coming down with game stop. I'm a little bit confident that it could become a sustainable bubble at 483 thousand dollars, because any person with any with half a brain is going to just be selling that like crazy from the inside the company. And things will meet in the
Lily Francus is a risk theorist and a quantitative researcher at Moody’s. She is also the author of the ‘Midnight on the Market Momentum’ newsletter. Find Lily on her Twitter at https://twitter.com/nope_its_lily and read her newsletter at https://nopeitslily.substack.com Jesse Livermore is an OSAM research partner and a recurring guest at Infinite Loops. You can connect with him on Twitter at https://twitter.com/Jesse_Livermore and read more about his work at http://www.philosophicaleconomics.com/ Show notes:
- Why all the recent focus on bubbles?
- How the era you grow up in shapes your investment philosophy
- Intrinsic and Extrinsic value
- How leverage impacts pricing
- What is a bubble? And how to identify if you’re in one
- Role of uncertainty in arbitraging
- What makes a bubble pop
- How bubbles set a new floor price
- Do we have enough short sellers?
- Time arbitrage
- Information arbitrage in a hyper-connected world
- Are we currently in a financial bubble?
- Implications of pseudonymity
- Is there a free will?