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Bitcoin isn't "unstable". It's very stable, as money is released on a very predictable and predetermined schedule. You know precisely how much inflation is goin
by sparkie 7y ago
Bitcoin isn't "unstable". It's very stable, as money is released on a very predictable and predetermined schedule. You know precisely how much inflation is going to occur and when it will end.
The only "volatile" is the exchange rate market of Bitcoin to USD. Obviously, this is going to be volatile for some time because demand varies from day to day. What's obvious, however, is that the trend in demand is continuing to increase over time. If you look at purchasing Bitcoin to hold for 4 years or more (or indefinitely), then you aren't concerned about the day to day fluctuations in the exchange rate.
If you purchased Bitcoin at any time in the past 10 years, and held onto it for 4 years, there is no point at which you could've made a loss. In fact, on average, you would've almost doubled your money if you converted it back to USD after 4 years.
They say past performance is no indication of success, but next month we enter another "quantitive hardening" period in Bitcoin, where the new supply released over the next 4 years is half of the supply released over the previous 4 years. If the rate of growth in demand stays the same, the exchange rate will continue to rise - but that itself causes an increase in demand because more people want to hold onto an appreciating asset rather than a depreciating dollar. Especially true given that the Fed has committed to rapidly devaluing the dollar this year in a struggle to deal with COVID-19.
Bitcoin doesn't care about the virus. There's nobody to bail out bitcoiners. The State is the virus, and Bitcoin is the remedy.
- louwrentius 7y ago> What's obvious, however, is that the trend in demand is continuing to increase over time. That's exactly what I would say if I have cryptocoins That is the pyramid scheme part. Convincing people to buy as not to miss out.