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The first question to ask is what is money? Money is just an efficient means of transferring value between strangers and storing value over time (second point c
by yrral 6y ago
The first question to ask is what is money? Money is just an efficient means of transferring value between strangers and storing value over time (second point could be debated, since the value of fiat currencies have almost always degraded over time due to inflation).
Why do we give USD value? Because most the population trusts the US government to keep the value of USD stable and we know it is widely used and accepted.
What has happened recently? Most fiat currency supplies have ballooned tremendously. This has undermined the collective view of the storing value over time argument. Bitcoin adoption has increased, which means more and more people recognize it as money and that it has value. Also since the supply is capped, it becomes more apparent that it will be a better store of value than USD.
If you have excess USD, why would you not want at least some exposure to bitcoin over USD?