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my interest in btc began to increase when I started to learn about "money". Did you know that all fiat (government issued/backed) currency is inflationary by n

my interest in btc began to increase when I started to learn about "money". Did you know that all fiat (government issued/backed) currency is inflationary by nature? The reason the Swiss used to be regarded for having the strongest currency was because it was still backed by gold. They are mostly fiat now sadly. So you say Bitcoin has no long term foundation? How about a hedge against inflation? the USD will ALWAYS lose value over time ABSOLUTELY. If I don't want to lose the value of my fiat, and there is enough people who also feel the same way by exchanging it for cryptocurrency, in which direction can we expect the price of bitcoin to go ? *sidenote - bitcoin is capped at 21 million tokens, hence NOT inflationary.

bdcravens 10y ago
Like so many discussions on Bitcoin's value, you're conflating the currency/technology with the currency's value. Bitcoin is inflationary; it's exchange rate is not. The exchange rate is influenced by news and psychology, and fiat inflation has very little influence on the price. I'd call that a weak foundation, and much of what we've seen in the past may not continue (anonymous drug sales, lack of government regulation, etc). Bitcoin has several years before it's an inflationary hedge, but in the meanwhile, it's a great speculative play with potentially unlimited upside. There's also an unlimited number of events that could occur in the next twelve months to destroy its exchange rate.