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Notably the world’s reserve currency has lost literally 100x in purchasing power since 1933. That’s right, since moving off the gold standard the USD has lost 9

by lowkey 5y ago

Notably the world’s reserve currency has lost literally 100x in purchasing power since 1933. That’s right, since moving off the gold standard the USD has lost 99% of its purchasing power relative to gold. In 1933 $20USD would buy you 1oz of Gold. In 2021 it would take $2000USD to buy the same oz of gold. It seems that the world’s reserve currency leaks approximately 99% of its value per century through the process of debasement which leads to inflation. I would argue the world deserves a better store of value.

esens 5y ago
You are comparing currency (dollar) against assets (gold.). You are complaining that a currency is acting like a currency (inflationary) and not an asset (relatively resistant to inflation.) I am so confused by this argument. I think you are right though that Bitcoin isn't acting like a currency, it is acting like an asset. Although it is highly speculative, more so that gold, as evidenced by its wild swings. Bitcoin is a crypto-asset, not a crypto-currency.
- lowkey 5y ago
  > You are complaining that a currency is acting like a currency (inflationary) I challenge the assumption that a currency is naturally inflationary in nature. Though it is very tempting to politicians to print money and debase the currency if they can get away with it, there is no inherent law of currencies that makes them inflationary. In fact, throughout hostory the only way fiat currencies could be inflated was through debasement. Bitcoin has a fixed supply and cannot be debased but those properties do not make it less of a currency.
pwinnski 5y ago
>> Explain how this is any different from the US dollar? > explains how this is very different >> Launches a completely unrelated complaint about inflation which seems to serve mostly to highlight that BTC compares poorly to gold; the original answer is unacknowledged
gamblor956 5y ago
The USD is a reserve currency, not a reserve store of value. It is held by other countries to pay their international debts, or to manipulate the exchange rate of their local currency.

by lowkey 5y ago

esens 5y ago

You are comparing currency (dollar) against assets (gold.). You are complaining that a currency is acting like a currency (inflationary) and not an asset (relatively resistant to inflation.) I am so confused by this argument. I think you are right though that Bitcoin isn't acting like a currency, it is acting like an asset. Although it is highly speculative, more so that gold, as evidenced by its wild swings. Bitcoin is a crypto-asset, not a crypto-currency.

lowkey 5y ago
> You are complaining that a currency is acting like a currency (inflationary) I challenge the assumption that a currency is naturally inflationary in nature. Though it is very tempting to politicians to print money and debase the currency if they can get away with it, there is no inherent law of currencies that makes them inflationary. In fact, throughout hostory the only way fiat currencies could be inflated was through debasement. Bitcoin has a fixed supply and cannot be debased but those properties do not make it less of a currency.

pwinnski 5y ago

>> Explain how this is any different from the US dollar? > explains how this is very different >> Launches a completely unrelated complaint about inflation which seems to serve mostly to highlight that BTC compares poorly to gold; the original answer is unacknowledged

gamblor956 5y ago

The USD is a reserve currency, not a reserve store of value. It is held by other countries to pay their international debts, or to manipulate the exchange rate of their local currency.