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If an apple falls from a tree, does the apple move away from the tree, or does the tree move away from the apple? In order to determine whether something has "d

If an apple falls from a tree, does the apple move away from the tree, or does the tree move away from the apple? In order to determine whether something has "dropped", you need to have a frame of reference to compare it to. You have arbitrarily chosen a frame of reference which fits your existing world-view, the dollar. If you are fixated in this view you will struggle to comprehend alternatives. Consider instead, that a bitcoin (or satoshi) could be a frame of reference, and from it, you can determine whether a dollar is dropping. Here's a visualization of this: https://usdsat.com https://usdsat.com. Since it is very clear from this visualization that over the course of years (rather than hours, which you have limited yourself to) that the dollar is in decline w.r.t bitcoin, then anybody wishing to "store value" over the course of years (not hours) would be making a poor choice if they selected dollars to do it. This is part speculation, as you suggest, but this speculation is not random or guesswork - it is a result of other processes which go by names such as "quantitative easing." These processes (deliberately) devalue the dollar. Since not everybody wants to hold onto an asset which is being devalued, they look for alternatives, and they find one which, by design, cannot be deliberately devalued. Further, the reason the value of dollars declines so rapidly w.r.t bitcoin is because people are betting against the currency which is being devalued, and for the one which can't be deliberately devalued. As more people make this bet, others become more confident that they can also make the same bet, which then leads to a situation where the more astute savers will front-run other savers because they expect that the dollar will continue to decline in value w.r.t bitcoin - and since the monetary policy of the federal reserve is to keep devaluing the dollar this is a very asymmetric bet.

krrrh 6y ago
Isn't this true of any asset? You’re not really addressing GPs concern that the term “store of value” usually applies to more stable valued assets. > You have arbitrarily chosen a frame of reference which fits your existing world-view It’s not really arbitrary. The earth and things anchored directly to it is an obvious frame of reference for objects moving in space because it is by far the largest gravity well compared to anything you’d be referencing it against. The US dollar is the world’s reserve currency, and fiat currencies have armies and police backing them and their use for paying taxes in addition to massive distribution, velocity, and proven utility.

krrrh 6y ago

Isn't this true of any asset? You’re not really addressing GPs concern that the term “store of value” usually applies to more stable valued assets. > You have arbitrarily chosen a frame of reference which fits your existing world-view It’s not really arbitrary. The earth and things anchored directly to it is an obvious frame of reference for objects moving in space because it is by far the largest gravity well compared to anything you’d be referencing it against. The US dollar is the world’s reserve currency, and fiat currencies have armies and police backing them and their use for paying taxes in addition to massive distribution, velocity, and proven utility.