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.... but bitcoin frequently jumps 25% a day on NON-domestic news.... how is it a better store of value?

lloeki 9y ago
> .... but bitcoin frequently jumps 25% a day on NON-domestic news.... how is it a better store of value? Z$ record inflation was 79,600,000,000% a month[0] before it disappeared. Bitcoin's short term volatility looks quite manageable in comparison. [0] https://en.wikipedia.org/wiki/Hyperinflation_in_Zimbabwe#Inflation_rate https://en.wikipedia.org/wiki/Hyperinflation_in_Zimbabwe#Inf...
dragonwriter 9y ago
Historically, Bitcoin has had high short-run volatility but also strong longer-term appreciation trend. That means it's been a good store of value, but not one you want, ideally, to rely on in situations where you might want money on short notice with little control of timing. (Whether it's reasonable to project that past behavior into the future is another discussion, of course.)
shanusmagnus 9y ago
I love when my store of value jumps 25% in a day.
nerdponx 9y ago
That still beats hyperinflation or the currency collapsing outright. Also, what other investment options do you have? I have no idea how easy or hard it is to buy Vanguard shares on short notice in Zimbabwe.
- charlesdm 9y ago
  Probably not hard for the elite or upper class, if you have access to the internet and an interactive brokers account.
- taejo 9y ago
  There hasn't been hyperinflation in Zimbabwe for years. The main currency is USD, with some parallel use of South African Rand, Botswana Pula and Zambian Kwatsha.
- erikpukinskis 9y ago
  You can’t store Vanguard shares in your brain.
jstanley 9y ago
No it doesn't. It hasn't done for a long time.
cxspoon 9y ago
bitcoin = fluctuation = jumps up and down prices = inflation = jumps up and up
- xadhominemx 9y ago
  if you need bitcoin to buy toilet paper, why not just buy toilet paper
  - thephyber 9y ago
    With what? Zimbabwe has been in a hyperinflation downward spiral for almost two decades now[1]. If you hold your Zimbabwe Dollars overnight, they are only worth a fraction of what they were the day before. In hyper-inflationary periods, people would rather buy goods immediately than hold onto cash because the cash depreciates FAR faster than commodities. [1] https://en.wikipedia.org/wiki/Hyperinflation_in_Zimbabwe#/media/File:ZWDvsUSDchart.svg https://en.wikipedia.org/wiki/Hyperinflation_in_Zimbabwe#/me...
    - CamelCaseName 9y ago
      His joke is that Zimbabwean dollars are toilet paper.
      - xadhominemx 9y ago
        No, I wasn't joking. I was asking sincerely, if you're reason for holding bitcoin is that you want to be able to buy goods next week without worrying about inflation, why not just buy the goods now and avoid the risk of owning bitcoin.
        craigc 9y ago
        But if you spend all your money on goods and then you need something else in a week or two then what do you use to buy it? Sell/trade the goods you already purchased? I think it makes sense to hold on to some form of currency.
bdcravens 9y ago
No it doesn't. It has been several years since that was true. Big jumps these days are 5-10%. The recent drop during the BCH pump and dump didn't even get to 25% in day. I would encourage you to consult charts, as most of those memes are out of date.
- sillysaurus3 9y ago
  3 days ago till now was a 25% jump in price. I was on record saying it was a good idea to buy in at $5800: https://news.ycombinator.com/item?id=15679776 https://news.ycombinator.com/item?id=15679776 it's currently $7200. And 60 days ago I said to buy in at $3k: https://news.ycombinator.com/item?id=15259134 https://news.ycombinator.com/item?id=15259134 After Bitcoin crashes, it's always a good idea to buy. A 25% fluctuation is still the norm. Sure, it takes 3 days rather than 1 day, but it's not mistaken.
mr_toad 9y ago
That's the the opposite of inflation. Relative to bitcoin, prices of goods and services are decreasing.

> .... but bitcoin frequently jumps 25% a day on NON-domestic news.... how is it a better store of value? Z$ record inflation was 79,600,000,000% a month[0] before it disappeared. Bitcoin's short term volatility looks quite manageable in comparison. [0] https://en.wikipedia.org/wiki/Hyperinflation_in_Zimbabwe#Inflation_rate https://en.wikipedia.org/wiki/Hyperinflation_in_Zimbabwe#Inf...

dragonwriter 9y ago

Historically, Bitcoin has had high short-run volatility but also strong longer-term appreciation trend. That means it's been a good store of value, but not one you want, ideally, to rely on in situations where you might want money on short notice with little control of timing. (Whether it's reasonable to project that past behavior into the future is another discussion, of course.)

shanusmagnus 9y ago

I love when my store of value jumps 25% in a day.

nerdponx 9y ago

That still beats hyperinflation or the currency collapsing outright. Also, what other investment options do you have? I have no idea how easy or hard it is to buy Vanguard shares on short notice in Zimbabwe.

charlesdm 9y ago
Probably not hard for the elite or upper class, if you have access to the internet and an interactive brokers account.
taejo 9y ago
There hasn't been hyperinflation in Zimbabwe for years. The main currency is USD, with some parallel use of South African Rand, Botswana Pula and Zambian Kwatsha.
erikpukinskis 9y ago
You can’t store Vanguard shares in your brain.

jstanley 9y ago

No it doesn't. It hasn't done for a long time.

cxspoon 9y ago

bitcoin = fluctuation = jumps up and down prices = inflation = jumps up and up

xadhominemx 9y ago
if you need bitcoin to buy toilet paper, why not just buy toilet paper
- thephyber 9y ago
  With what? Zimbabwe has been in a hyperinflation downward spiral for almost two decades now[1]. If you hold your Zimbabwe Dollars overnight, they are only worth a fraction of what they were the day before. In hyper-inflationary periods, people would rather buy goods immediately than hold onto cash because the cash depreciates FAR faster than commodities. [1] https://en.wikipedia.org/wiki/Hyperinflation_in_Zimbabwe#/media/File:ZWDvsUSDchart.svg https://en.wikipedia.org/wiki/Hyperinflation_in_Zimbabwe#/me...
  - CamelCaseName 9y ago
    His joke is that Zimbabwean dollars are toilet paper.
    - xadhominemx 9y ago
      No, I wasn't joking. I was asking sincerely, if you're reason for holding bitcoin is that you want to be able to buy goods next week without worrying about inflation, why not just buy the goods now and avoid the risk of owning bitcoin.
      - craigc 9y ago
        But if you spend all your money on goods and then you need something else in a week or two then what do you use to buy it? Sell/trade the goods you already purchased? I think it makes sense to hold on to some form of currency.

bdcravens 9y ago

No it doesn't. It has been several years since that was true. Big jumps these days are 5-10%. The recent drop during the BCH pump and dump didn't even get to 25% in day. I would encourage you to consult charts, as most of those memes are out of date.

sillysaurus3 9y ago
3 days ago till now was a 25% jump in price. I was on record saying it was a good idea to buy in at $5800: https://news.ycombinator.com/item?id=15679776 https://news.ycombinator.com/item?id=15679776 it's currently $7200. And 60 days ago I said to buy in at $3k: https://news.ycombinator.com/item?id=15259134 https://news.ycombinator.com/item?id=15259134 After Bitcoin crashes, it's always a good idea to buy. A 25% fluctuation is still the norm. Sure, it takes 3 days rather than 1 day, but it's not mistaken.

mr_toad 9y ago

That's the the opposite of inflation. Relative to bitcoin, prices of goods and services are decreasing.