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Simply take a moment to see how that argument works with other kinds of assets and you will see how it doesn't make any sense. Gold is a speculative asset that
by shawnz 6y ago
Simply take a moment to see how that argument works with other kinds of assets and you will see how it doesn't make any sense.
Gold is a speculative asset that also has some limited tangible uses too. So does that mean gold has less reasons to decrease in price than an asset which only has tangible uses and no speculation?
- neilwilson 6y agoTry it for certain vintages of fine wine. The same as Bitcoin. Over time the quantity available for sale decreases due to loss. People lose their keys and the coins get lost. People drink the wine. Both naturally reduces supply driving up the price of the remainder. BTC is a one way bet, right up to the point where people decide it isn't worth holding any more. Just like certain vintages of wine.
- shawnz 6y agoSure, the fair value might slowly climb over time due to losses, but that has nothing to do with the fact that it's the target of a lot of speculation. The fact that there is some small rate of losses doesn't significantly impact the amount of downside speculation you'd expect.