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Bitcoin is designed to be a bubble. I mean, I love the concept and have profited from it, but looking at the mechanics, it almost makes sense to buy and hold, a
by osrec 9y ago
Bitcoin is designed to be a bubble. I mean, I love the concept and have profited from it, but looking at the mechanics, it almost makes sense to buy and hold, as the money supply doesn't grow much. This sort of puts a deflationary pressure on prices (of goods, not bitcoin - bitcoin becomes ever more valuable as the money supply tends towards a constant), meaning hoarders are rewarded, thereby reducing supply further. I don't know for sure, but mass deflation doesn't really sound all that sustainable. Couple that with hype driven demand, and you have yourself a perfect little bubble! I've personally sold a lot of my holding, but I'm very excited to see how this plays out in the next few months. There will be a lot of lessons to learn, but the end of bitcoin (should that happen) will not be the end of a decentralised money - I genuinely believe society needs this.