4 ms·
I made the point of specifying long term (by this, I mean say 5 years). Bitcoin is unpredictable short-term because demand can change significantly on a day to
by sparkie 8y ago
I made the point of specifying long term (by this, I mean say 5 years). Bitcoin is unpredictable short-term because demand can change significantly on a day to day basis, where supply is predictable. If you take any point in the bitcoin history, and check its value compared to 3 years earlier, there is no point where value was lost over a 3 year period.
Also, another way to look at it, is that your Bitcoin will be worth exactly the same in Bitcoin in three years. The bitcoin you own as a proportion of the total supply is fixed. Compared to fiat markets, the proportion you own to what is printed is declining year on year.
Bitcoin will eventually become not less volatile, but involatile. This is because you won't be measuring its value in USD, but you will be measuring the value of USD in Bitcoins.
- blotter_paper 8y ago>Bitcoin will eventually become not less volatile, but involatile. This is because you won't be measuring its value in USD, but you will be measuring the value of USD in Bitcoins. Accepting a hypothetical future where other currencies are generally compared against bitcoins, bitcoins would still not be "involatile." While markets tend to use one currency as a reference point for another, there are other reference points available. Economists often use a basket of staple goods, like milk and eggs, to get a sense of how much the dollar has fluctuated in value. As you're aware Bitcoin was designed to be deflationary. If we expect human population to rise, and bitcoins to be stagnant in number while remaining a cornerstone of the economy, our hypothetical future should see the value of bitcoins continuing to grow in the long term.
- nradov 8y agoPast performance is no guarantee of future returns.