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Cash in Contango: Bitcoin Enters the Post Dream World

Cash in Contango: Bitcoin Enters the Post Dream World
Written by Jon Gulson @jongulson
Posted 04 July 2017

Satoshi’s opening abstract in his white paper Bitcoin: A Peer to Peer Electronic Cash System is allowing online payments to be sent directly from one party to another without going through a financial institution.  




Bitcoin: Cash or Commodity?

Despite the name of Satoshi’s white paper, bitcoin is currently thought too volatile to be a currency or cash system for everyday transactions.

The Cost of Opportunity



So the investor will consider the opportunity cost of alternatives when looking at the bitcoin price: and holding normal cash in the era of historically low growth, low productivity and no return on money; foregoes the opportunity of cryptocurrency.

If bitcoin has commoditized money, then the investor holding stable cash must be anticipating an unforeseen event whereby its forward value makes it higher than today's - otherwise why keep it?

Cash is in contango and reality is beginning to enter the post-dream world.

Written by Jon Gulson @jongulson
Posted 04 July 2017
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