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I don't think Bitcoin will "go out of fashion." In the long run, I believe it will "flip" the market cap of gold and become the new standard hedge against infla

I don't think Bitcoin will "go out of fashion." In the long run, I believe it will "flip" the market cap of gold and become the new standard hedge against inflation. I've read reports that Bitcoin mining is already being used to subsidize green energy infrastructure. If this trend continues, then its role in making the transition from fossil fuels more economical will outweigh any temporary setbacks it has caused via increased energy consumption. I'm still not really up-to-date on Lightning Network and its potential. But even without that, I think that Bitcoin will remain dominant in the cryptocurrency space due to network effects. It has the best name recognition, the most secure PoW blockchain, and the highest capitalization. Ethereum will likely stay quite relevant, but between its migration to the less-secure PoS system, and its constant inflation rate without any cap (vs. Bitcoin's decreasing one with the 21 million cap), I think that Bitcoin will continue to be prized as a store of value.

ivanche 6y ago
Anything claimed to be a hedge against inflation must have positive correlation with inflation. There are 200+ countries in the world and inflation in them is happening at different times and different rates. There's no way that gold knows which country you live at and if there's an inflation there currently.
- monopoledance 6y ago
  Isn't that because all thing generally become cheaper with technological/economical progression (ecological debt)?
- kinghajj 6y ago
  Well, sure, no asset will track inflation in any particular country with a perfect correlation, but the markets are pretty good at minimizing arbitrage. I'm sure Venezuelan holders of gold or cryptocurrencies appreciate its use as a hedge. https://www.goldbroker.com/charts/gold-price/ves https://www.goldbroker.com/charts/gold-price/ves
monopoledance 6y ago
> subsidize green energy infrastructure. That doesn't matter really. It's just energy "wasted" with artificial challenges. The only purpose of digging for hashes is to blow energy... Bitcoin apologists ignore the fact that there are alternatives. There is just no future in that. No energy source is carbon neutral, much less resource-neutral. Western life is too wasteful, we all need to cut back. Bitcoin doesn't fit humanity's future.

ivanche 6y ago

Anything claimed to be a hedge against inflation must have positive correlation with inflation. There are 200+ countries in the world and inflation in them is happening at different times and different rates. There's no way that gold knows which country you live at and if there's an inflation there currently.

monopoledance 6y ago
Isn't that because all thing generally become cheaper with technological/economical progression (ecological debt)?
kinghajj 6y ago
Well, sure, no asset will track inflation in any particular country with a perfect correlation, but the markets are pretty good at minimizing arbitrage. I'm sure Venezuelan holders of gold or cryptocurrencies appreciate its use as a hedge. https://www.goldbroker.com/charts/gold-price/ves https://www.goldbroker.com/charts/gold-price/ves

monopoledance 6y ago

> subsidize green energy infrastructure. That doesn't matter really. It's just energy "wasted" with artificial challenges. The only purpose of digging for hashes is to blow energy... Bitcoin apologists ignore the fact that there are alternatives. There is just no future in that. No energy source is carbon neutral, much less resource-neutral. Western life is too wasteful, we all need to cut back. Bitcoin doesn't fit humanity's future.