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I’m not sure I understand, has BTC ever lost 99% of it’s value? If I understand correctly, the value of Bitcoin has only gone up over the past 11 years. While t
by lowkey 5y ago
I’m not sure I understand, has BTC ever lost 99% of it’s value? If I understand correctly, the value of Bitcoin has only gone up over the past 11 years. While the purchasing power of the US dollar has fallen in real terms every single one of those years.
- AnimalMuppet 5y agoDepends on your time frame. It has definitely gone down at times - it's not at 55,000 any more. So "only gone up" might be true, if you pick your sampling intervals in a way that misses all the dips. It's definitely false as an absolute statement, though. And, to thehappypm's point: Has the US dollar ever lost 30% of its value in a month? No. This point was badly stated (bitcoin has never lost 99% of its value), but I think the point is rather clear: Bitcoin can lose value much more rapidly than the US dollar, and in fact has done so.
- thehappypm 5y agoBTC is up 100x from a couple years ago, is that desirable for a currency?
- lowkey 5y agoIt is desirable for a reserve asset and a store of value - which are use-cases for a currency. It is obviously not great to have a deflationary currency as the only option for spending. However, luckily we still have fiat currencies which are ideal for spending as well as Bitcoin which is the superior savings vehicle. Bitcoin has only been around for ~11 years and by all accounts it is still in price discovery mode. Eventually it’s value will stabilize and it may serve as a better unit of account. Until then, spend your fiat and Hodl your bitcoin.