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by JumpCrisscross 4573 days ago
>It has built-in deflation, which makes it a great long-term store of value

It also has a very large risk premium, which makes it inferior to other options for solely a long-term store of value.

>If you want to hedge against USD depreciation, BTC is one option.

Bitcoin is an imperfect hedge against U.S. dollar depreciation. There are valid reasons for investing in Bitcoin, but this should not be one of them.
1 comments
josu 4573 days ago
>It has built-in deflation, which makes it a great long-term store of value

Besides, so far, Bitcoin has been highly inflationary. In a bit more than a year, the number of bitcoins in circulation has doubled.

https://blockchain.info/charts/total-bitcoins?timespan=all&s...

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JumpCrisscross 4573 days ago
>Bitcoin has been highly inflationary

Inflation and deflation are not solely functions of the supply of money. They are functions of the price of money, which is a function of both supply and demand. The price of goods, which have been reasonably stable in U.S. dollar terms, have fallen in terms of Bitcoin. Thus Bitcoin is presently deflationary, not inflationary.

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josu 4572 days ago
You are completely right. I hope I haven't mislead anybody with my comment.
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