[pengwing]

Ethereum has only been around since 2015. Naturally smart contracts, DAos and NFTs are somewhat newer technology, still exhibiting flaws.

Block chain as a concept with the single use case of store of value has been around since 2009 in the form of Bitcoin. So let me only pick one battle here: The problem is federally-issued inflationary currency. Bitcoin solves it.

[da-x]

However so far it's not proving to be a currency (short term stability, long term deprecation or preservation) but only an asset class (short term instability, long term preservation).

So far it is only proving that it cannot be both.

For assets, one can choose to invest in already existing inflation resistant assets, and many investors and even unsophisticated laypeople did that across the ages before Bitcoin was invented. So essentially federally-issued inflationary currency is not really a problem of investment because there are other alternatives to it when investment is concerned.

[pengwing]

BTC is already a de-facto currency in El Salvador and somewhat short term stable.

As an asset class BTC solves yet another problem: It is a better version of gold due to the hard supply cap.

[da-x]

"Bitcoin Failed in El Salvador. The President Says the Answer Is More Bitcoin." [1]. Short term stable? A currency that falls 20% in one month is far from it.

Gold is the least good example among these kind of assets, because ownership is less bound and provable by law. Stocks and real estate are much better in that regard.

[1] https://foreignpolicy.com/2021/12/06/bitcoin-city-el-salvado...

[genewitch]

The US dollar has fallen way more than 20% in value in the last year, if my grocery and petroleum expenditures are any indication.

Or is that why Bitcoin is "worth less", too?

[PeterCorless]

"we find no evidence of any positive links between inflation and either Bitcoin or Ethereum during times of increasing forward inflation expectations. This raises significant doubts over the ability of cryptocurrencies to hedge expected inflation in the short- or long-run."

https://www.sciencedirect.com/science/article/pii/S016517652...

[pengwing]

A really great study, albeit of a completely different topic. Let me explain the it in layman's terms: Can expectation of inflation be used as a trading signal to profit from a rising price of Bitcoin and Ethereum? Result: Not really, it was only briefly possible during Covid19 and does not hold as a general relationship.

My point was: BTC is more deflationary than USD. A relationship between the topic of the study and my statement does not exist. But if you read chart 1 of Figure 1 carefully, you will find that its data in fact supports my statement.

[trevyn]

Are “inflation expectations” different than measured inflation?

[jagger27]

I don't want to live in a society where some unknown shadowy figure(s) may or may not still hold the keys to the greatest fortune in human history.

[pengwing]

You don't have to. Inventing BTC and being rewarded for it is very much based on merit. You are free to live in a society based on other values if you want to.

[jagger27]

We live in the same society. Don't even pretend that it is possible to live outside it, especially as a technologist. The point I was trying to make is the unknown of it. At least today we have a pretty good idea of who is unfathomably rich. Merit has nothing to do it with those people too.