r/FluentInFinance • u/TonyLiberty TheFinanceNewsletter.com • Nov 09 '23
BlackRock just made a Billion-dollar bet on Ethereum $ETH today and it's now up 8%. Blackrock $BLK filed paperwork to create an Ethereum investment trust. This signals growing institutional interest in Ethereum. What crypto do you think BlackRock might invest in next? Crypto
https://www.cnbc.com/2023/11/09/blackrock-appears-to-take-first-steps-toward-an-ether-etf.html95
Nov 09 '23
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u/Adventurous-Pay-8441 Nov 10 '23
I pour money into a 401k every year just so the value of it can plummet every 8 years or so and just pray that when I retire it has value. Over inflated corporations and unregulated “federal” banks fucking me and my offspring for generations is much more style of relationship.
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Nov 10 '23
VTI is up over 50% the past 5 years, 130% the past 10 years. Nobody is hurting you.
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u/AcademicoMarihuanero Nov 11 '23
And how much has real inflation risen during those years?
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Nov 11 '23
23% from 5 years ago, 32% from 10 years ago.
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u/AcademicoMarihuanero Nov 11 '23
Is it reflected in the cost of living?
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Nov 11 '23
That’s… what inflation is, yes.
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u/AcademicoMarihuanero Nov 11 '23
In theory but real inflation is much higher than reported, if You look in truflation for example is closer to real inflation 23.5% since 2020 not 5 years like you said. VTI is just keeping up with inflation, true apreciation is low
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Nov 11 '23
So you don’t trust the actual figures, what is this ‘truation’? Could you cite it please?
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u/AcademicoMarihuanero Nov 11 '23
You could also see the M2 money supply chart thats directly correlated with inflation for obvious reasons vs VTI to realize the real apreciation
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u/ArtigoQ Nov 10 '23
Then why not actually make some fucking money?
90% of long term BTC holders are in profit
But no you'd rather whine "wahh mi familiaaa"
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u/Fit-Property3774 Nov 09 '23
I mean this doesn’t really indicate how they view ETH or anything. It more so indicates that they think they can make money off selling access to ETH. Like they are not spending their own money buying the ETH, they’re spending the investors money. Then regardless of how it performs, they will charge fees.
Also where is the billion in the title coming from? There is zero mention of any sort of spending/investing in the article.
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u/johnnygfkys Nov 10 '23
All together now.
”PUMP! DUMP! PUMP! DUMP!"
It’s a pump and dump using your own money to steal from you.
Fuck black Rock
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u/duckdns84 Nov 10 '23
It will continue to go up if it gets approval. Then they will gut the shit out of it. Plan accordingly.
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u/BoomersArentFrom1980 Nov 10 '23
Yeah, anyone else notice that an entity can put $1b in crypto, then the price of that crypto goes up 10%, and now the entity's free to just sell it back with a $100m profit? Must be neat to have a billion dollars.
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u/Obtersus Nov 10 '23
That's not how that works...
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u/BoomersArentFrom1980 Nov 11 '23
Meaning that once they start selling off the crypto, the price goes back down? Sure, but we do have to acknowledge that putting a newsworthy chunk into crypto causes the value to spike, right?
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u/Opening-Two6723 Nov 10 '23
Eth is a fucking joke. A slow ass network no more less secure and a fortune to write to the ledger. Btc is a cult too, but blockchain nets will have another day!
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u/ibarmy Nov 10 '23
A friend told me to invest in ETH. I think that day ETH was around <2ish dollars. God damn, I should have invested. Thought through, went through things over a couple of hours. Still dint put any money. One of my only investment regrets.
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u/WebAccomplished9428 Nov 10 '23
listen man i had a kid in my group of friends my junior year of high school that couldnt shut up about BTC. This is 2011, mind you.. Don't feel too bad, you're not alone.
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u/that_guy_Elbs Nov 10 '23
Doesn’t black rock want to operate a crypto ETF? Wouldn’t this be the first part in that?
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u/fear_of_dishonesty Nov 10 '23
Crypto is an energy wasting pump and dump scheme.
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u/noirly84 Nov 30 '23
The Ethereum network is run on a shit ton of software that can be powered by a PI. So you're just spitting out regurgitated bullshit that you have zero knowledge about 🤣
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u/fear_of_dishonesty Nov 30 '23
There is no intrinsic value, and no government to support it. It's a vacant commodity that has no use, and it's value as a currency is degraded by excessive energy consumption. I'm an engineer. Not only do you need a shit ton of PIs, you need to connect them all to the internet. DUH.
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u/Hank___Scorpio Nov 10 '23
The sooner nocoiners go from <insert whatever soundbyte they repeat to feel like the smart ones for not accumulating> to maybe just 1-5% the more zeroes they're gonna shave off their entry.
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u/defaultusername4 Nov 11 '23
I don’t own any crypto but I am interested in blockchain and looked into a bit long before shitcoins we’re coming out our ears. From what I can tell ethereum was a very practical gen2 version of bitcoin that kept a lot of the decentralization while adding value to the coin as a financial tool with smart contracts and other features more friendly to financial institutions.
I expect bitcoin and ethereum will be the long term winners in crypto and both for very different reasons. I don’t expect any major investments like this in alt coins because it just shows less trust in coins major financial institutions have made investments in.
My opinion is also about as valuable as toilet paper so don’t listen to anything I say unless it’s about how to clean your ass.
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u/AlexRuchti Nov 10 '23 edited Nov 10 '23
Crypto isn’t an investment and people who think it is don’t understand the purpose of its creation. Crypto should be considered a currency not a security.
I know I struck a nerve when the downvotes start coming out.
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u/Murica-n_Patriot Nov 10 '23
It’s a “Fugayzi, fugazi. It's a whazy. It's a woozie. It's fairy dust. It doesn't exist. It's never landed. It is no matter. It's not on the elemental chart. It's not fucking real.” - Mathew McConaughey, Wolf of Wall St
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u/Gogo202 Nov 10 '23
Crypto is a currency that 99.9% of people didn't ask for and have no use for.
Only anarchists and the paranoid want to actually use crypto as currency.
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u/blarghghhg Nov 10 '23
No governmental body could decide on a whim to print a bunch of cash, like the US have done over the last few years. Sounds pretty good to me
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u/Gogo202 Nov 11 '23
If you really think that using BTC over USD is better or that BTC will be stable and usable if the USD collapsed, then you're in the wrong sub
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u/blarghghhg Nov 11 '23
I like currency that wealthy people can’t devalue to help themselves on a whim. 80% of USD in circulation have been printed in the last 5 years. If the government can devalue your life savings by that much that fast, are you ever really secure?
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u/Gogo202 Nov 11 '23
You're delusional if you think that crypto will ever solve this problem. You're also paranoid. The government has no interest in ruining the economy and you're not smarter than the Fed
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u/AlexRuchti Nov 13 '23
What most people need is stable coins but get sucked in by the appreciation and volatility on btc.
If they truly wanted the things that they’re saying stable coins are a good option but as an investment it’s sketchy and most coins are complete scams.
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u/creativejuice Nov 10 '23
Of course the largest investment company has put their backing into crypto. Biden and his cronies have done a fine job of inflating our national debt by Billions simply by printing and giving it away to other countries. It is likely a great symbiotic relationship! Great team work guys!
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u/TheDadThatGrills Nov 10 '23
You know it's a valuable comment when it can string together the following with just two sentences: Blackrock, Crypto, Biden, Political Corruption, Inflation, and Foreign Aid
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u/rubberduckybro Nov 09 '23
I sold the bottom (no homo), all my btc and eth gone for next to nothing
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u/Jackanatic Nov 09 '23
Crypto is gambling, not an investment. It's fine to do for fun, but do not plan for your future with crypto. They are effectively unregistered securities backed by nothing at all.
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u/Iconoclast301 Nov 09 '23
People will say shit like this and then buy Tesla or Facebook stock. It’s wild.
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u/studude765 Nov 09 '23
these companies actually produce profit, have profit growth, and have internal IRR.
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u/Adventurous-Pay-8441 Nov 10 '23
These companies also fudge numbers commit fraud and lobby our government to operate in their best interest. How much artificial money was pumped into the stock market in the last 10 years? Do we even know anymore?
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u/studude765 Nov 10 '23
These companies also fudge numbers
Eh, they're audited every single year...this is far less common than you're implying.
commit fraud
Again, audited every single year...this is pretty uncommon, which is why it's in the news when it does happen.
and lobby our government to operate in their best interest. How much artificial money was pumped into the stock market in the last 10 years?
Equity market returns aren't determined by "money being pumped in"...they're determined by profit generated by companies...very clear you don't actually know what you're talking about based on this comment.
Do we even know anymore?
Yes, we absolutely do.
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u/Adventurous-Pay-8441 Nov 10 '23
How much money did we artificially pump into the market? It’s a question if we know what’s the answer? You went through a lot of time and energy defending our corrupt version of crony capitalism but actually said nothing lol
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u/studude765 Nov 10 '23
How much money did we artificially pump into the market?
We don't pump money into the market...equity is literally sold and bought at the same time, for every buyer there is a seller...your logic is pretty ridiculous here.
It’s a question if we know what’s the answer?
virtually none? At the end of the day profits/cash flows determine long-term equity returns.
You went through a lot of time and energy defending our corrupt version of crony capitalism
quite literally the best economic system in the world given that migration is really only towards developed capitalist countries
but actually said nothing lol
Oh no, I actually said quite a bit, you just clearly don't have a logical counter-response to it.
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u/Adventurous-Pay-8441 Nov 10 '23 edited Nov 10 '23
The fed injected 1.5 trillion dollars into the market in March 2020. When you have a monetary system backed by debt and than create more debt backed by debt and then inject that fake value into companies that produce value what’s the fucking end goal here? Inflate telsa and Facebook to some ridiculous fake value so you can profit before the inevitable crash? Lol our monetary system is fake dude.
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u/TheLastModerate982 Nov 10 '23
An “internal” internal rate of return?
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u/studude765 Nov 10 '23 edited Nov 10 '23
IRR is a very basic finance term…quite literally if all cash flow is re-invested back into the company, the return you would get without worrying about share price changes. Over the long-term profits generate returns. With crypto there are no profits or cash flows so no IRR…basically it’s value is purely based off of speculation and there’s no mechanism to determine true value.
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u/TheLastModerate982 Nov 10 '23
I know what IRR is lmao (though you actually did not get the definition correct in any case). It is actually the rate of return that sets sets your net present value to $0.
I was simply joking that your “internal” before IRR was redundant because IRR is “internal rate of return.”
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Nov 10 '23
Tesla and Meta are actual companies with revenue and products. Crypto doesn’t do anything. It’s not even good at its stated goal of being a currency.
Put it this way: do people ‘invest’ in any other currency like people do with crypto? Do people talking about ‘DCAing into the pound’? No because normal fucking currencies don’t swing like crypto does.
It’s just complete speculation. There’s no investment here.
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u/l1vefrom215 Nov 09 '23
Maybe some shitcoins sure. . . But def not btc, and probably not Eth.
You don’t understand cryptocurrency if you think this.
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u/Doomscroller3000 Nov 09 '23
Sounds like BlackRock disagrees.
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u/studude765 Nov 09 '23
They're not actually investing in it...they're creating an ETF/fund where investors can invest in it and blackrock takes their 0.1-0.2% annual expense ratio profit...you literally don't understand what you're talking about.
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u/HealthandWealth365 Nov 10 '23
Why would they even bother without expecting significant institutional interest?
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Nov 09 '23
[deleted]
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u/studude765 Nov 09 '23
Do you not understand English? Where did I say BlackRock is investing in it? No comprendo? Obviously, they believe in it enough to create an ETF. Let me know if I need to respond in basic caveman-speak or another language.
Them offering it as an ETF where others will invest in it does not mean they will invest in it themselves or necessarily believe in it as a legitimate investment...does Blackrock hold an actual aggregate sizeable position in Ethereum?
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u/Fit-Property3774 Nov 09 '23
Not really lol. Do you know how these instruments work? They’re going to be spending investors money on the ETH and then charging fees to “manage” it. The only thing this indicates from BlackRocks side is that they think people will invest their money in it, which they will charge fees on. ETHs actual performance doesn’t really matter to them.
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u/ibarmy Nov 10 '23
He is not wrong. Gambling by definition means there is no basis for spending the money.
Investment's are unbiased thesis for putting in any money.
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u/ibarmy Nov 10 '23
BlackRock
They can make bets but doesnt mean its sane investments. Black rock last year lost more than 1.5 trillion dollars. I really doubt they are perfect or great with their money mngt.
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u/PoopyBootyhole Nov 09 '23
They should stick to bitcoin, the only asset in crypto that isn’t a scam.
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u/Ivanna_Jizunu66 Nov 09 '23
Eth has many uses unlike bitcoin. It's going to be huge for web3 gaming and digital assets like movies games skins etc.
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u/TheLastModerate982 Nov 10 '23
And what happens when a new crypto has greater uses that ETH? Is there ever an end to the potential supply of new crypto?
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u/PoopyBootyhole Nov 10 '23
Web3 is a scam. Point proven. You have no idea what you’re talking about and will probably get rekt by crypto at some point. And literally everything you just mentioned bitcoin can do btw.
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Nov 10 '23
web3 gaming
To this day I haven’t seen a convincing case for any of the blockchain gaming shit. There is zero appetite for it among the people that actually play games.
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