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There have been many volatility events. Given that governments have the ability to practically outlaw it if they choose, that makes it quite risky as a store o

by blunte 10y ago

There have been many volatility events. Given that governments have the ability to practically outlaw it if they choose, that makes it quite risky as a store of value. Several of the major volatility events in the past of bitcoin were related to Chinese government announcements or rumors regarding regulation/legality. Sure one can transfer bitcoin without governmental approval (or against restriction), but that annoying need to convert to and from fiat in order to trade for other goods and services means that the governments still have a great deal of influence over bitcoin.

bogomipz 10y ago
>"There have been many volatility events." Sure but I was speaking to the OPs assertion that this particular event is proof that it is not suitable as a store of value. >"Several of the major volatility events in the past of bitcoin were related to Chinese government announcements or rumors regarding regulation/legality." Right but this is to be expected given that China recently has been the largest market for Bitcoin by volume no? [1] >" but that annoying need to convert to and from fiat in order to trade for other goods and services means that the governments still have a great deal of influence over bitcoin" Is that any more annoying or any more inconvenient than having your hard-earned savings devalued by your government? [1]http://www.coindesk.com/estimating-data-china-real-bitcoin-trading-volumes/ http://www.coindesk.com/estimating-data-china-real-bitcoin-t...
- blunte 10y ago
  > Is that any more annoying or any more inconvenient than having your hard-earned savings devalued by your government? I wouldn't recommend holding fiat currency as savings, except for perhaps 2-3 months of salary equivalent in case of emergencies. The rest should be stored in other assets based on your risk profile. But it is currently a fact of life that we must exchange our cryptocurrency for fiat if we want to buy goods and services most places. While the number of merchants accepting bitcoin is growing, it's still quite small compared to the number of merchants who take local currency.

by blunte 10y ago

bogomipz 10y ago

>"There have been many volatility events." Sure but I was speaking to the OPs assertion that this particular event is proof that it is not suitable as a store of value. >"Several of the major volatility events in the past of bitcoin were related to Chinese government announcements or rumors regarding regulation/legality." Right but this is to be expected given that China recently has been the largest market for Bitcoin by volume no? [1] >" but that annoying need to convert to and from fiat in order to trade for other goods and services means that the governments still have a great deal of influence over bitcoin" Is that any more annoying or any more inconvenient than having your hard-earned savings devalued by your government? [1]http://www.coindesk.com/estimating-data-china-real-bitcoin-trading-volumes/ http://www.coindesk.com/estimating-data-china-real-bitcoin-t...

blunte 10y ago
> Is that any more annoying or any more inconvenient than having your hard-earned savings devalued by your government? I wouldn't recommend holding fiat currency as savings, except for perhaps 2-3 months of salary equivalent in case of emergencies. The rest should be stored in other assets based on your risk profile. But it is currently a fact of life that we must exchange our cryptocurrency for fiat if we want to buy goods and services most places. While the number of merchants accepting bitcoin is growing, it's still quite small compared to the number of merchants who take local currency.