*Investors Blog*

Snagglefoot said:
Here you go. As with anything involving crypto there is always a lot of had waving going on. As for the ridiculous concept of Bitcoin mining the inputs undeniably contribute to GDP, such as buying computers and consuming electrical power, and placing those little machines so nerds can get a crypto fix.

View attachment 261881
Click to expand...
Has nothing to do with GDP. Is a measure relative to GDP, like debt or US money supply.

The Bitcoin Bro's talk about Bitcoin vs GDP because current market cap of Bitcoin is <$2T but global GDP is $100T. So they say Bitcoin will grow by 50X from here in order to facilitate global trade in Bitcoin. Thats what they say.

If you converted Bitcoin to a "finished good or service" where and what would you count as GDP. Would it be only new coins, gain on coins? Would it be based on owners citizenship or where its stored. Since its "stored" in the ether how would that work. Another reason its not counted as GDP.

If Market cap = GDP, Apple by themselves would have a GDP 1.5X that of Canada. But its not. Its just a ledger entry until you spend it on something.

Also, if it was part of GDP, it would count towards Canadian GDP also, and given Canadian GDP has not grown since 2015, I guess no Canadians bought Bitcoin?
 
SC Maintenance said:
Has nothing to do with GDP. Is a measure relative to GDP, like debt or US money supply.

The Bitcoin Bro's talk about Bitcoin vs GDP because current market cap of Bitcoin is <$2T but global GDP is $100T. So they say Bitcoin will grow by 50X from here in order to facilitate global trade in Bitcoin. Thats what they say.

If you converted Bitcoin to a "finished good or service" where and what would you count as GDP. Would it be only new coins, gain on coins? Would it be based on owners citizenship or where its stored. Since its "stored" in the ether how would that work. Another reason its not counted as GDP.

If Market cap = GDP, Apple by themselves would have a GDP 1.5X that of Canada. But its not. Its just a ledger entry until you spend it on something.

Also, if it was part of GDP, it would count towards Canadian GDP also, and given Canadian GDP has not grown since 2015, I guess no Canadians bought Bitcoin?
Click to expand...
I agree that Bit Coin and others Cryptos do not contribute to finished good or services ie try buy a Corvette with it. However, it is a sink for Trillions of dollars and let the “ experts” continue to espouse on that. The administration needs to find the guy putting together the GDP figures with his pencil. Right now the public has no info one what’s really happening. By the way. Where is all the crypto money? :unsure:
 
Last edited:
SC Maintenance said:
Except China only buys commodities, sold on the world market, by the lowest bidder including freight. Except oil, they buy that from Iran or Russia at below market.
Click to expand...

So what will happen when a chinese company simply ships their stuff to Mongolia and then ships it to the US?

Tariffs wont work.
 
Snagglefoot said:
I agree that Bit Coin and others Cryptos do not contribute to finished good or services ie try buy a Corvette with it. However, it is a sink for Trillions of dollars and let the “ experts” continue to espouse on that. The administration needs to find the guy putting together the figures with his pencil. Right now the public has no info one what’s really happening. By the way. Where is all the crypto money?
Click to expand...
First you need to split crypto from Bitcoin, because non bitcoin I have no clue.

Bitcoin conceptually is stored in a "block-chain", which is a digital ledger propagated many times across various bitcoin servers. The Servers are the bitcoin "miners". Every so often the algorithm passes out another coin and that goes to a miner - some of it random, but the more effort you put into "mining" the more likely you are to getting a coin. My understanding is there will only ever be 21M bitcoins, and were a few years away.

My question has always been - once all the bitcoins have been released, who will bother spending any money mining, and hence why will anyone keep a bitcoin server and blockchain operating?

Either way, its not a USA specific thing.
 
cptbarkey said:
So what will happen when a chinese company simply ships their stuff to Mongolia and then ships it to the US?

Tariffs wont work.
Click to expand...
Actual Tariffs are based on the country of origin of a product, not the ship point.

They would need to lie about who made it. I suppose that is possible.

Assuming Mongolia were caught - which should be easy considering how small Mongolian economy vs Chinese economy, then new tariffs would be created to apply to Mongolia.

I am not advocating for or against, just pointing out how these things work.
 
SC Maintenance said:
Actual Tariffs are based on the country of origin of a product, not the ship point.

They would need to lie about who made it. I suppose that is possible.

Assuming Mongolia were caught - which should be easy considering how small Mongolian economy vs Chinese economy, then new tariffs would be created to apply to Mongolia.

I am not advocating for or against, just pointing out how these things work.
Click to expand...

Yup, but who is to say who calls who a liar. You'd have to tariff the entire world.
 
And its off to the races, the stock market is far from being slammed at the open. (fingers crossed while I make up my mind, sell or hold)
WMT, META, AMZN holding their own... If I do anything is will be by 10:30am EST before I go to the gym. Im thinking hold, this is insane all the world events unfolding. *LOL*
 
alarmguy said:
Your not including the profit margin in your $10
It depends on the company margin.
So a $100 product that now cost $110 plus the added profit margin on the extra $10 is what?
Some companies I guess can be as little as another 10 or 20% = $1 or $2 per hundred but products can also have margins as much as 500%

It all depends Isfahan a company is going to cut their profit margin on that extra $10
Many will not. Some will maybe, I don’t know or they will figure a way to cut costs further. At 25% well, might as well ship the stuff to China first than to the USA 🙃
Click to expand...
AG, I am not talking about profit, leverage, etc. I am talking sales price. Consumers lose.
 
Well known economist Jim Bianco is claiming Mexico and USA have agreed to delay Mexico tariffs for a month.

1738596624932.webp
 
You must log in or register to reply here.

Similar threads

Passport1
Stock Split
2
Replies
29
Views
1K
mjk1967
SC Maintenance
Private Equity wants access to your 401K money
2
Replies
23
Views
1K
Shannow
A
Major power grid issues in Portugal, Spain and parts of France
2 3 4
Replies
67
Views
2K
Shannow
S
Filling in the California Duck Curve
2
Replies
29
Views
1K
Snagglefoot
buster
CEOs: AI Will Wipe Out Some Jobs
4 5 6
Replies
106
Views
2K
supton
Back
Top Bottom