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"and isn't subject to inflation" what do you call price of BC going up 16000 fold in 6 years??? the theory was you can buy the same good with the same amount o
by mars4rp 9y ago
"and isn't subject to inflation"
what do you call price of BC going up 16000 fold in 6 years???
the theory was you can buy the same good with the same amount of coin regardless of what dollar is doing, did that happen in practice? no, because no one knows true value of BC because there is no central authority. I am with you on hating the central authority but inflation part didn't work out as it was planned!
- etr-strike 9y agoThis is a rediculous argument. You can’t just introduce a radically new technology and currency to the market and expect it to instantly be priced at is true value. Give it time. Bitcoin is a populist movement. Eventually the market will find it’s correct value and volatility will decline (volatility in bitcoin has actually been declining for some time now).
- jypepin 9y agowhat you are mentioning is deflation, the opposite of inflation. there is a limited amount of bitcoins, so indeed it is indeed deflationary, unlike most fiat, that central authority keep printing anytime they need.
- mars4rp 9y agoyou are right, and why deflation better than inflation?
- jypepin 9y agoWell, inflation makes the money you have in the bank loose value over time. In extreme examples you have countries like Venezuela and results are bad: people struggle to keep their buying power, companies are leaving the country, imports become way more expensive, etc. I don't think there is a real world example of a country with deflation, so I don't know if the opposite would be true or what real consequences would be, but you can expect the opposite to happen.