4 ms·
>Bitcoin however is money. Bitcoin is not money as we think in a modern way. If you think of money a way to exchange goods then yes Bitcoin is money. Modern mo
by hypnoce 9y ago
>Bitcoin however is money.
Bitcoin is not money as we think in a modern way. If you think of money a way to exchange goods then yes Bitcoin is money.
Modern money (printed piece of paper labeled in currencies in its materialized form. Just a sequence of digits on your bank account) is dept. That's why currencies have interest rates (IR). It is also possible to create money out of nothing.
IR and volume are adjusted according to the economy. Bitcoin is closer to a commodity in the sense that it is finite and requires work to be extracted.
- cma 9y ago> Bitcoin is closer to a commodity in the sense that it is finite Bitcoin could be forked in the future to become inflationary. It has no permanent rules, things can change through consensus. It isn't like gold (gold can be devalued through poeple losing faith in it, etc., but the supply of it doesn't inflate other than through discovery/mining).
- hypnoce 9y agoBitcoin can also be devaluated by lost of trust. Also the current supply of Bitcoin is through mining only. If rules are changed by a fork then you will have 2 different coins. We already saw it with bitcoin cash. Another way would be that the current consensus on Bitcoin itself changes. But that's a risk. How can people then predict such a consensus change. How risky is it to have Bitcoin since the day after the rules may change ?