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" because millions of people view Bitcoin as a good place to park their money over fiat currency." This would be very unwise. BTC is highly volatile, and coul
by alexasmyths 9y ago
" because millions of people view Bitcoin as a good place to park their money over fiat currency."
This would be very unwise.
BTC is highly volatile, and could go to 0 tomorrow.
It could could be made useless by the stroke of the pen someone in any big government.
Nobody keeps most of their assets in cash.
Stocks, Bonds, real estate, a basket of commodities, a basket of currencies - or even a decent long-term-interest savings account ... are all considerably better than BTC as stores of value if you don't like fiat.
When considering the 'risk premium' - BTC is a speculative instrument only. Not a currency, and definitely not a store of value.
- xiaoma 9y agoStocks and real estate are a reasonable shield against monetary policy, but baskets of currencies, bonds and long-term-interest savings are all extremely vulnerable to inflation. BTC on the other hand, is deflationary by design.
- dreit1 9y agoAny bootstrapped currency will have a very high risk premium. That doesn't mean it doesn't behave like a currency