could bitcoin soon be recognized as a mainstream asset class? implications...

DieJohnny

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Quote from: black_swan on December 19, 2013, 05:20:58 PM

I mostly agree with the above post but no government will accept any type of asset unless they have certain powers on it (traceability, taxation, etc.).
It's completely insane and delusional to think the opposite.

Well while i agree that governments want control, if you truly think more control over bitcoin is prerequisite to its complete adoption, then I think bitcoin as it currently works is doomed.

Thes notion that bitcoin is not really anonymous (blockchain permanent record, yada yada) and can accommodate govt desires for regulation to me is a fiction.

As long as I can print a piece of paper and with only an electronic wallet turn it into $100,000, then it will always be an asset impossible to regulate. This is how Bitcoin is so much different than cash. It is very very difficult to negotiate in 100k with cash, it is why moving trucks of cash around is a risky business.

How easy is it to make it through security with a Bitcoin private key? Everyone around you would be clueless that you had a million in bitcoin tattooed to your ass.

pening

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Reliable, working exchanges are needed. Asset come and go all the time, you dont need track record to attract investors that are looking for high risk/return vehicles. But they do need convenient methods to deposit money and withdraw the investment. This requires exchanges with working bank accounts. Current bitcoin exchanges are not really going to make the grade.

black_swan

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I mostly agree with the above post but no government will accept any type of asset unless they have certain powers on it (traceability, taxation, etc.).
It's completely insane and delusional to think the opposite.

DieJohnny

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Quote from: hazek on June 13, 2012, 01:52:41 PM

IMO: Ensured future convertibility. That's all that's missing, a 100% escrowed trustworthy futures market, where people can hedge their positions.

I searched on Asset class and hit this post, I am in total agreement with hazek.

I think BTC is already a NEW asset class, however, its value is being held back by the exchanges and government meddling (dwolla, china...). I think we would already be at $10k if transfer in and out of cash were easier.

I think in no way will BTC ever need to replace good old printed cash. Regardless of the recent price wobbling, BTC will become the ultimate safe haven. The world will convert to BTC the moment they get paid and convert back when they need to pay their bills, if their debtor accepts BTC then fine, but not necessary if it is liquid.

BTC has already become the world's hedge against hyper inflation and the coming devaluation of local currency. For the sake of the people on the planet, governments need to empower BTC liquidity rather than stand in the way.

bitlizard

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Quote from: Elwar on June 13, 2012, 02:04:39 PM

A 5 year track record would help.

will be there soon

Elwar

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Viva Ut Vivas

A 5 year track record would help.

acoindr

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Quote from: bitlizard on June 13, 2012, 01:30:13 PM

could bitcoin soon be recognized as a mainstream asset class?

I doubt it. Unless the investment advisors are under age 27.

Quote from: bitlizard on June 13, 2012, 01:30:13 PM

What needs to happen in order for bitcoin to be recognized as a legitimate investment option for main stream international consumption?

It needs two things. Understanding, and proven track record. The track record is being established, but the understanding will come too late for it to be considered by the mainstream.

Quote from: bitlizard on June 13, 2012, 01:30:13 PM

prudent investment advisers would not recommend their clients invest 100% of their retirement savings into bitcoin.

I don't think any bitcoiners would either. Personally I'd highly recommend having some silver and gold too.

Quote from: bitlizard on June 13, 2012, 01:30:13 PM

However 2-5% of an investment portfolio invested in a new asset class 'p2p currency' seems reasonable.

It would to us, but it would be a forward thinking investment advisor indeed that would also feel that way.

Quote from: bitlizard on June 13, 2012, 01:30:13 PM

When assessing bitcoin purely from an investment perspective most of us probably agree that it is a high risk / insanely high return investment.

I agree about the insanely high return part, but I view the risk as moderate to high with it favoring the moderate side more with every passing day.

Quote from: bitlizard on June 13, 2012, 01:30:13 PM

If bitcoin can gain mainstream recognition as a legit asset class for the investment portfolios of working class people and hedge fund managers alike.

That won't happen.

Quote from: bitlizard on June 13, 2012, 01:30:13 PM

Then I think international bitcoin remittances could become a huge, as btc value in a given region would presumably not be eroded by large quantities of incoming remittances if the local population recognized btc as a legit store of value.

No value wouldn't erode, it would increase.

Quote from: bitlizard on June 13, 2012, 01:30:13 PM

Heck they might even start using it as a currency.

People will do that, but it won't be because bitcoin is adopted by the mainstream from people beginning to "get it". It will be because it will be one of the de facto replacements for fiat currency in the not too distant future.

hazek

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IMO: Ensured future convertibility. That's all that's missing, a 100% escrowed trustworthy futures market, where people can hedge their positions.

bitlizard

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What needs to happen in order for bitcoin to be recognized as a legitimate investment option for main stream international consumption? prudent investment advisers would not recommend their clients invest 100% of their retirement savings into bitcoin. However 2-5% of an investment portfolio invested in a new asset class 'p2p currency' seems reasonable. When assessing bitcoin purely from an investment perspective most of us probably agree that it is a high risk / insanely high return investment.

If bitcoin can gain mainstream recognition as a legit asset class for the investment portfolios of working class people and hedge fund managers alike. Then I think international bitcoin remittances could become huge, as btc value in a given region would presumably not be eroded by large quantities of incoming remittances if the local population recognized btc as a legit store of value. Heck they might even start using it as a currency.

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