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by scoopertrooper 1466 days ago
You shouldn't have your wealth stored in a medium of exchange, while expecting capital appreciation exceeding or even comparable to the equity market. That kind of volatility is a sign of there being something seriously wrong with that medium of exchange.
1 comments
lrvick 1466 days ago
Storing wealth in an -inflationary- asset like fiat currency is a stupid move, I grant. I store value in a mix of fixed quantity or -deflationary- assets that are useful or interesting to me like art, vehicles, real estate, and yes... crypto-assets. The latter is perhaps the most volatile but also has the highest liquidity, is fireproof, can be traded for other assets anonymously, etc. Tradeoffs.
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cmrdporcupine 1466 days ago
Calls fiat currency inflationary while advocating a "currency" that has had (as of this moment) 45.92% inflation YoY and is rapidly getting worse.

Nice religion you got there.

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datadata 1466 days ago
Normally by inflation it is meant "monetary inflation", price has no bearing on this.
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cmrdporcupine 1466 days ago
So you agree it's not money then.
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datadata 1466 days ago
That is irrelevant here. The argument that bitcoin is not inflationary is merely that it has a supply cap. USD has no supply cap but it obviously has lower price volatility. That said, it is the Fed's goal to purposefully reduce the purchasing power of USD by 2% every year, so the trajectory is clear.
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cmrdporcupine 1466 days ago
Your point about fiat currency is also irrelevant here. Bitcoin has been inflationary in the real world in actual practice. At least over the timescales we're talking about. While fiat currency has been inflationary, Bitcoin has been even more so.

And again back in reality, measures (interest rate increases) to counteract inflation in the fiat currency also make Bitcoin an unattractive "investment":

"The higher [interest] rates go, the more cost to hold an asset that does not produce anything." - Jamie Dimon, CEO JP Morgan

Bitcoin for a while was an unproductive but speculatively "profitable" (for non-greater fools) place to shove money when interest rates were low. Now that money is moving out.

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