Good morning everyone,

The RNS stream today is not exactly fireworks, but you've made a few suggestions in the comments so I will have a look at:

I'm also making a short comment on Bitcoin, adding to Paul's comments yesterday, so I hope you don't have Bitcoin fatigue!

Regards,

Graham




Bitcoin (obligatory comment)

Firstly, bear in mind that I am a nocoiner (someone who doesn't own any crypto-coins). So perhaps I'm bitter about never buying any, despite being aware of them for longer than most people? I don't think I am bitter. But maybe it's unconscious?

Anyway, I did consider the investment merits of bitcoin, and rejected it.

The practical argument

In simple terms, my reason was as follows: while the supply of bitcoin may be limited, the supply of crypto-currency in general is unlimited. There are over 1,000 crypto-currencies, and more are being created all the time.

So buying bitcoin as an investment is not a bet on crypto-currency in general succeeding. It's a bet on that specific crypto-currency succeeding.

Based on my limited reading on the subject, litecoin appears to be a far superior currency than bitcoin. And as things currently stand, the size of the bitcoin network has resulted in transaction fees running into the tens of dollars. This makes bitcoin impractical for micro-payments and effectively renders it useless as an everyday medium of exchange.

There are plenty of other currencies to choose from, so why should bitcoin be the best? It's quite reasonable to think that some other crypto-currency will eventually overtake it in popularity, despite bitcoin's first-mover advantage.

Maybe I should have bought a crypto ETF, to hedge my doubts about bitcoin and my lack of ability to predict a crypto-winner? Perhaps. That's a much stronger argument versus buying one coin in particular.

The economic argument

But there's something else holding me back.

I've made no secret about the fact that I'm a goldbug, and have always had an interest in the gold standard.

There's a thing in economics called the Regression Theorem (by Mises). My understanding of this, which I developed before bitcoin was invented, explained that money gradually emerged as the…

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