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The point of bitcoin is NOT to make payments. That's not what it's for. Bitcoin is a STORE of VALUE, like gold or Bonds. We're currently in an age of unprece
by thorwasdfasdf 6y ago
The point of bitcoin is NOT to make payments. That's not what it's for.
Bitcoin is a STORE of VALUE, like gold or Bonds.
We're currently in an age of unprecedented Fiat currency devaluation the likes of which we've never seen before in such a developed country. And we're only going to see much much more of it as the younger generations have made it clear they want much more from government in the way of fiscal and stimulus than they want taxes. Hence deficit spending will continue to expand and expand. The Fed will keep printing money until inflation runs super high: 2 to 4%, they said they would be happy with! and lets not forget the CPI is undervalued by at least 1%.
the monetary supply this year has expanded at a record pace, just look it up. Assets have been exploding over the last 10 years, both in the US and worldwide.
What all this means is that there is an unprecedented need for a stable STORE of value. It's not about bitcoin. It's about having a store of value that's guaranteed to not be inflated and the world has a huge burning need for it. this is why bitcoin will expand from 700Billion today market cap, up to 10Trillion or 20T or more over the next 5 to 10 years. maybe not in a straight line but it will get there and even exceed it maybe. Bitcoin may be the new bonds, in about 30 years time from now.
The FEDs of the world, that pump up the monetary supply have all agreed on the same game plan: It's call UP is the only way out. The only way to deleverage the economy is to inflate away all the debt. The Governments of the world are all on board with this policy. Why do you think they're all so desperate to create high inflation (3%-4%)? That's how you reduce the debt burden. 10 years of 5% inflation can reduce your debt almost in half, right along with anyone's savings. And by keeping interest rates at 0 or less, they want to make saving as painful as possible, so people will go out and spend their entire retirement savings on consumables to keep the economy going in the short run. the only way to protect yourself from this is to own: Stocks, real estate (not scalable or viable for most), and Gold. That's all there was. Until now. Now there's bitcoin, another way to diversify and not put everything into super high stocks.
- UncleMeat 6y agoSentence #1 of the abstract of the OG paper. "A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution" "Payments" appears in literally sentence #1.
- ur-whale 6y agoThere's what Satoshi thought Bitcoin was going to be and there's reality 10 years down the road. Give the man a break: he was a visionary but he could not predict the future exactly, and in hindsight, something that takes 10mn to confirm a transaction was likely never going to be used as a currency, at least not until layer 2 tech (lightning) delivers.
- alwillis 6y agoElectronic cash = money as a bearer instrument payments = replacing bank wires and ACH payments, not buying coffee He/she/they meant bitcoin is a bearer instrument like gold and not something that has to be redeemed. It doesn't represent debt the way a federal reserve note (a.k.a. a dollar) does. Most of the white paper could have been boiled down to this: Bitcoin is a non-sovereign, hard-capped supply, global, immutable, decentralized digital store of value. It’s an insurance policy against monetary and fiscal policy irresponsibility from central banks and governments globally.—@Travis_Kling
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- imtringued 6y agoIf you think that supply side inflation can cause CPI inflation in a demand starved economy then you are dead wrong. As long as there are foreign investment opportunities you are going to see very little inflation. As long as unemployment or underemployment stays high you can keep printing forever without having an impact on the value of the currency. >The FEDs of the world, that pump up the monetary supply have all agreed on the same game plan: It's call UP is the only way out. The only way to deleverage the economy is to inflate away all the debt. The Governments of the world are all on board with this policy. Why do you think they're all so desperate to create high inflation (3%-4%)? That's how you reduce the debt burden. You know, if the central banks actually did their job properly you wouldn't want to hold BTC at all because the income of workers would rise faster than the value of your BTC. They are not desperate just incompetent (well, in theory they are unable to solve the problem).
- alwillis 6y agoYou know, if the central banks actually did their job properly you wouldn't want to hold BTC at all because the income of workers would rise faster than the value of your BTC. They are not desperate just incompetent (well, in theory they are unable to solve the problem). Also kinda corrupt: https://breedlove22.medium.com/masters-and-slaves-of-money-255ecc93404f https://breedlove22.medium.com/masters-and-slaves-of-money-2....
- gowld 6y agoWhat's the point of Bitcoin if we can store our value in Beanie Babies?
- thorwasdfasdf 6y agoBeanie babies have lower liquidity. Also, you may not be aware because is a relatively recent development, but in mid-2020 there was a fundamental perception shift in the way that Wallstreet viewed bitcoin. nearly all the major the hedge fund managers and institutional investors now believe in bitcoin. so the world's 200 Trillion $ worth of bonds and equities will slowly flow to BTC. somehow i don't think they're going to spend trillions of dollars for beanie babies.