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Why do some people keep trying to prove Bitcoin as a pump and dump scheme? Yes it has pumps and dumps, but if you zoom out, those pumps and dumps get smoothed o
by nobrains 5y ago
Why do some people keep trying to prove Bitcoin as a pump and dump scheme? Yes it has pumps and dumps, but if you zoom out, those pumps and dumps get smoothed out and you see a digital asset which keeps increasing in value because people see it as a hedge against USD and other currencies inflation. The increase in value is not infinite, and that can also be seen in the price increase curve (log). The price increase is slowing. Why is it difficult to come to the conclusion that initially Bitcoin price increase will be volatile and eventually it will come to parity, decreasing the volatility. From that point onwards, the price will be more closely related to actual inflation (world over).
(The above purposefully ignores the other debate about electricity, usage, etc. to keep the discussion simplified.)
- acover 5y agoGold isn't even an inflation hedge in the scale of one's lifetime, why will Bitcoin be different?
- nobrains 5y agoGold is an inflation hedge in many, many countries.
- acover 5y agoI'm not an expert, I am referring to the following. Am I misunderstandibg something? > due to its real-price volatility, gold had not been a good inflation hedge over the short- or long-term. They did find that, going back to the era of Emperor Augustus who reigned from 27 BC–14 AD, gold had been a pretty good hedge for inflation measured by military pay. So, if you have a liability due in 2,000 years, gold might be a good way to maintain your purchasing power. https://www.pwlcapital.com/will-gold-save-the-day/ https://www.pwlcapital.com/will-gold-save-the-day/
- deleted 5y ago[deleted]
- bhaak 5y agoIs the USD a worse inflation hedge in those countries?
- johnny_b_g 5y ago>Why do some people keep trying to prove Bitcoin as a pump and dump scheme? And why do all the Bitcoin bros get instantly butthurt the moment anyone shows any skepticism about it (but they feel totally entitled to have skepticism about any/all other currencies)