Dollar Auction Show Episode 1 - Can bitcoin be a better store of value than the stock market?
Nov 22, 2019
The hosts delve into the properties of a store of value, contrasting Bitcoin and the stock market. They explore time horizons for assessing value retention and dissect key criteria like liquidity and appreciation. Discussion highlights include Bitcoin's predictable inflation schedule, the stock market's resilience against inflation, and the implications of quantitative easing. They also tackle the role of consumer behavior in asset adoption and Bitcoin's unique fixed supply compared to gold and commodities. Finally, they reflect on historical trends and potential future challenges.
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Stocks As A Practical Long-Term Base Case
- Alex prefers the stock market as a practical long-term store of value because index returns historically offset inflation.
- He cites historical equity returns (roughly 7% real) and real estate as common retirement stores of value.
Which Asset Best Hedges Inflation?
- Shimon frames the core comparison: which asset class better resists inflation and which has the larger upside.
- He asks whether stocks, crypto, or real estate best hedge inflation and deliver returns.
Money Printing Flows Into Stocks
- Alex argues monetary easing channels liquidity into stocks and large firms, boosting equity returns during printing cycles.
- He cites foreign demand and historical studies that show equities capture much of global monetary expansion.
