RE: Boom, Bust and Bitcoin: Moving the world towards a state of freedom
Interesting article! I don't know as much as I'd like to, about economics and markets, so I always welcome an article like this.
You say, "There are only two options." and I have heard the same from others. Both options lead to a crash. My first thought is there has to be other options that no one has thought of yet, and may surprise us. Maybe crypto will have some moderating affect as people have a new choice in currency.
My second thought is, I have heard that people like Trump and Robert Kiyosaki have made their fortunes on these crashes by buying assets when the prices dive. I have heard that people can make money when the markets go down as well as up, if they know how. There is the old skool way of shorting -- borrowing and selling assets and then buying them back for repayment when the prices are lower. And now there are things like VXX to profit from volatility, and leveraged reverse index funds to profit from a crash. If one is indeed coming, maybe people can hedge it a bit with such investments. Or be liquid and buy when the prices are low.
Speaking of shorting, I may be the first person in history able to short Steem. At least in a decentralized peer to peer way. I am told I am the first person to get a steem loan. ( https://steemit.com/steemfund/@steemfund/first-steemfund-loan-active ) Now that I have completed the first step in shorting -- borrowing an asset; If I choose, I can sell the 600 steem now, and buy it back at lower prices in the future and make a profit. However, I don't think Steem is going lower, so I don't plan to sell what I borrowed. But I find it interesting that we can do a lot of the things we do with fiat, with steem. I hope this eventually has a moderating affect on the boom and bust economic cycles.