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> Bitcoin is too easily replaced to be a long term store of value. It relies purely on public sentiment. Whereas things like precious metals at least have utili
by splintercell 9y ago
> Bitcoin is too easily replaced to be a long term store of value. It relies purely on public sentiment. Whereas things like precious metals at least have utility and no easy substitutes.
But bitcoin has utility, in case of hyperinflation, capital controls, asset protection etc.
Imagine if you are a Chinese billionaire who wants to move some of his wealth out of China, you buy bitcoin for Yuan in China, sell a futures contract to someone to cover yourself from the price fluctuation, and there you go.
Why is that not a legitimate use of bitcoin?
- geezerjay 9y ago> But bitcoin has utility, in case of hyperinflation, capital controls, asset protection etc. It really doesn't, and in a blatantly obvious way. All it has is propaganda pushed by those who are personally invested in doing the pumping as part of a pump-and-dump scheme.
- splintercell 9y agoSo your argument is "no it ain't"? I don't really understand your argument. Are you doubting the part that people are using it for fleeing capital controls in China or for asset protection or how they were using it during Venezuala crises?
- blablabla123 9y agoI think there are only BTC/USD futures. It might make more sense to directly buy USD. Also, is the long position actually hold by a bank or just some random person? In the latter case there'd still be a liquidity risk...