5 ms·
We all want to get rich by hoarding money. The only difference is, that the value of bitcoins compared to classical currencies is currently increasing. And beca
by JepZ 9y ago
We all want to get rich by hoarding money. The only difference is, that the value of bitcoins compared to classical currencies is currently increasing. And because the monthly increase is so high, so many want to join the game.
As soon as everybody has some bitcoins the bitcoin value increase should slow down. At that point there would be no point in hoarding bitcoin more than any other currency.
- Frogolocalypse 9y ago> At that point there would be no point in hoarding bitcoin more than any other currency. Oh yes there is. Bitcoin is deflationary, so your money isn't debased while you hold it. I don't ever intend to exchange my bitcoin for any other currency unless I'm purchasing something.
- UncleMeat 9y agoWhy not just hold bonds?
- Frogolocalypse 9y agoMy banking account can never be seized by a govenment, and I can liquidate them whenever I choose, wherever I choose. Indeed, I can buy a beer with my bitcoin at any time of my choosing.
- bduerst 9y agoThat's not really a threat vector that most people worry about.
- Frogolocalypse 9y agoMost people don't understand or appreciate risk, no.
- bduerst 9y agoOkay then. What's the probability of the government seizing your bank account?
- Frogolocalypse 9y agoHigh. https://en.wikipedia.org/wiki/Executive_Order_6102 https://en.wikipedia.org/wiki/Executive_Order_6102 https://en.wikipedia.org/wiki/Civil_forfeiture_in_the_United_States https://en.wikipedia.org/wiki/Civil_forfeiture_in_the_United... I think when bitcoin is measured in the multi-trillions, the temptation for the US government to raid american bitcoin exchanges will be too great. And they have form.
- bduerst 9y agoWhat is "high" probability? 80%? 70%?
- emodendroket 9y agoWhat's more, Bitcoin is subject to risks your bank account is not.
- foepys 9y agoEvery fiat currency is inflationary. Bitcoin is designed to be deflationary, so every Bitcoin will be worth more and more forever. Using Bitcoin as a currency makes no sense.
- emodendroket 9y agoIt makes a lot of sense if you want to, say, have a mortgage that you keep paying, but your equity never increases in your home anyway.
- Frogolocalypse 9y agoPersonally, I've grown quite accustomed to things becoming cheaper to buy. It allows me to buy more things.
- chii 9y agoyes, but when this happens enmass, the people making things are going to see that nobody is buying their widgets, and go out of business before it becomes cheap enough. Then their employees get fired, and now there's less things to buy, with less people who have money to buy.
- Frogolocalypse 9y agoIn that theoretical world that punishes savers by telling stories of deflation bogeymen, I'm sure. In the real world, I like beer, and when I want to buy a beer, I buy a beer. Except now I can buy more beer, because my savings haven't been debased.
- emodendroket 9y agoA beer is one thing. Only a madman would take out a mortgage, auto loan, or large business loan denominated in a rapidly deflating currency.
- 9y ago
- emodendroket 9y agoBy its very design Bitcoin encourages deflation. The money supply is over time going to shrink, rather than grow, as does every major reserve currency.