Holding cash is part of the risk/return/liquidity triangle. All investment functions against this triangle - cash is extremely low risk, and maximally liquid, a

Holding cash is part of the risk/return/liquidity triangle. All investment functions against this triangle - cash is extremely low risk, and maximally liquid, at the cost of a slight negative return. (Contrast this to, say, angel investment, which has near-maximum potential returns, but very high risk and near-zero liquidity.) And contrast the low risk / high liquidity / near zero return behavior of cash with bitcoin. With bitcoin, you have very high risk (speculative bubble) / limited liquidity (can't be used for most transactions, must exchange) / absurdly high returns. It is in no way like cash. It's pure speculation. A medium of exchange needs to behave like cash. It needs to be highly stable and highly liquid. Bitcoin is neither. So if the intent of bitcoin is to replace cash (and cash-equivalents like credit cards), it's doing an absolutely shitty job of it, and will continue to do so until the price stabilizes. As for inflation's impact on investment... read the WSJ or Forbes regularly for what the mainstream financial industry thinks about that. They're absolutely inflation-phobic. I'm old enough to remember late-1970s stagflation, which made basic investments like real estate totally absurd and nearly wrecked the economy. No one wants to go back to that. But if there's one thing worse than high inflation, it's deflation - when cash actually increases in value. It radically disincentivizes investment, when you can just stuff cash in a mattress and make a real return doing so. Why take a risk if you can make money without it?