5 ms·

You hit the nail on the head. Hodling is, in some cases, the best use case for Bitcoin.

pg_bot 8y ago
There is a reason why an investor that holds a security until it is worthless is called a "bag holder". It makes no sense to "invest" in any currency when you can own productive assets instead. If you are concerned about the government seizing your assets, I would suggest emigrating to a country that respects private property rights. Countries that undergo hyperinflation are fairly rare, and the citizens of those countries tend to not tolerate it for very long. (Research dollarization of Ecuador and Zimbabwe)
- dmichulke 8y ago
  Your argument is also applicable to gold yet it doesn't hold there
  - pg_bot 8y ago
    My argument holds for gold as well. Do some research on ROI for gold against the stock market for the past 80 years. You will find that it has a pitiful return when compared to owning stocks. Gold is a non productive asset, just because people buy it when there is a market panic doesn't make it a wise decision (people do dumb things during market panics). If you hoard gold you also run the risk of someone finding a lot of gold and ruining your investment. It's a commodity just like coal, copper, or wheat. If someone told you to hold all of your money in coal, the advice would be just as valid as those who tell you to put money in gold. At the end of the day if you have no productive use for the asset, why hold it?
    - dmichulke 8y ago
      > There is a reason why an investor that holds a security until it is worthless is called a "bag holder". It makes no sense to "invest" in any currency when you can own productive assets instead. The price of gold is nonzero for a good amount of years (2k+), so a lot of people buy/hold it and in that sense your theory is incorrect. Also productivity is not everything, sometimes "keeping what you have" is much more important. Finally, there are situations where you cannot - just emigrate to a country that respects your property rights (see migrant crisis) - buy US or other stocks > Do some research on ROI for gold against the stock market for the past 80 years. You will find that it has a pitiful return when compared to owning stocks Of course, do your research on X and you will find a time when X > stocks > Y. Hell, do it on bitcoin, it outperforms stocks during the last 10 years :-P > At the end of the day if you have no productive use for the asset, why hold it? Cheap/anonymous remittance and storing value without trusting a 3rd party are valuable, even if it's not productive. If you're really convinced about what you say, short gold and bitcoin. You'll get rich if you're correct and wiser if you're not.
  - beefield 8y ago
    Just wait for a day when there is a central banker that simultaneously has half a brain cell and tiniest set of balls. That day you see price of gold crashing in a way that has never seen before. Really, there is no more reason for a modern central bank to hold gold reserves than there is reason to hold ponzicoin reserves.
    - dmichulke 8y ago
      > Just wait for a day when there is a central banker that simultaneously has half a brain cell and tiniest set of balls. You do realize that you just implicitly said that you're basically much smarter and more courageous than every central banker in the world. I assume there are more than 10000, so that's not exactly humble. I'd bet against you but if you're short BTC or gold, we're already betting against each other anyway.
      - beefield 8y ago
        I did not imply I would have those balls either.

There is a reason why an investor that holds a security until it is worthless is called a "bag holder". It makes no sense to "invest" in any currency when you can own productive assets instead. If you are concerned about the government seizing your assets, I would suggest emigrating to a country that respects private property rights. Countries that undergo hyperinflation are fairly rare, and the citizens of those countries tend to not tolerate it for very long. (Research dollarization of Ecuador and Zimbabwe)

dmichulke 8y ago
Your argument is also applicable to gold yet it doesn't hold there
- pg_bot 8y ago
  My argument holds for gold as well. Do some research on ROI for gold against the stock market for the past 80 years. You will find that it has a pitiful return when compared to owning stocks. Gold is a non productive asset, just because people buy it when there is a market panic doesn't make it a wise decision (people do dumb things during market panics). If you hoard gold you also run the risk of someone finding a lot of gold and ruining your investment. It's a commodity just like coal, copper, or wheat. If someone told you to hold all of your money in coal, the advice would be just as valid as those who tell you to put money in gold. At the end of the day if you have no productive use for the asset, why hold it?
  - dmichulke 8y ago
    > There is a reason why an investor that holds a security until it is worthless is called a "bag holder". It makes no sense to "invest" in any currency when you can own productive assets instead. The price of gold is nonzero for a good amount of years (2k+), so a lot of people buy/hold it and in that sense your theory is incorrect. Also productivity is not everything, sometimes "keeping what you have" is much more important. Finally, there are situations where you cannot - just emigrate to a country that respects your property rights (see migrant crisis) - buy US or other stocks > Do some research on ROI for gold against the stock market for the past 80 years. You will find that it has a pitiful return when compared to owning stocks Of course, do your research on X and you will find a time when X > stocks > Y. Hell, do it on bitcoin, it outperforms stocks during the last 10 years :-P > At the end of the day if you have no productive use for the asset, why hold it? Cheap/anonymous remittance and storing value without trusting a 3rd party are valuable, even if it's not productive. If you're really convinced about what you say, short gold and bitcoin. You'll get rich if you're correct and wiser if you're not.
- beefield 8y ago
  Just wait for a day when there is a central banker that simultaneously has half a brain cell and tiniest set of balls. That day you see price of gold crashing in a way that has never seen before. Really, there is no more reason for a modern central bank to hold gold reserves than there is reason to hold ponzicoin reserves.
  - dmichulke 8y ago
    > Just wait for a day when there is a central banker that simultaneously has half a brain cell and tiniest set of balls. You do realize that you just implicitly said that you're basically much smarter and more courageous than every central banker in the world. I assume there are more than 10000, so that's not exactly humble. I'd bet against you but if you're short BTC or gold, we're already betting against each other anyway.
    - beefield 8y ago
      I did not imply I would have those balls either.