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> What kind of logic is that? Holding bitcoin doesn't give you any earnings. Well, holding USD gives you inflation (i.e., negative interest). Holding BTC does
by dmichulke 9y ago
> What kind of logic is that? Holding bitcoin doesn't give you any earnings.
Well, holding USD gives you inflation (i.e., negative interest).
Holding BTC doesn't (assuming the 21 mn are already priced in).
- csomar 9y agoEh, nope. That's not how it works. Holding 1 USD will give you 1 USD after 1 year. Holding 1 Bitcoin will give you 1 Bitcoin after 1 year. You are confusing the unit you are holding with the value "vs" another unit. That depends on the market and the external factors (like inflation, interest rates, etc...) But holding 1 Unit will always give you 1 Unit of whatever you are holding.
- dmichulke 9y agoYou are deflecting to a problem of definition ;) Yes, you have the same amount but no it doesn't purchase as much as it did one year ago. Units of accounting only make sense within a context of other units of account. A dollar by itself is just a piece of paper if you cannot buy an amount of wheat, water or square meters with it. And by that measure the dollar is losing value vs a bitcoin.
- csomar 9y agoSo? You just repeated what I said. My original comment was debunking the Bloomberg article. When you hold 1 Stock, at the end of the year you get a dividend. You divide the dividend by the stock to get the P/E ratio. That's not the same with USD or BTC. Its value fluctuates but it generates no income on its own.
- dmichulke 9y agoI think I misunderstood the intention for your first comment, probably by interpreting it in the context of another comment that was nearby but not related at all. Sorry