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>Crypto like bitcoin is necessarily an appreciating asset because it is deflationary by its very nature. That assumes that the demand for cryptocurrencies rema
by MereInterest 7y ago
>Crypto like bitcoin is necessarily an appreciating asset because it is deflationary by its very nature.
That assumes that the demand for cryptocurrencies remains constant. If the demand for cryptocurrencies drops faster than the deflation of the currency, then the value goes down.
- cheald 7y agoAbsolutely! My point is that it's ill-suited to be a currency because we know now that stable currencies need to be able to match supply to demand. Because of crypto's fixed supply, it behaves more like an asset (though it certainly need not be an appreciating asset). Overall, I believe that a successful crypto will behave more like an asset than a currency. The failing ones are just dust.