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The idea that a product (e.g. bitcoin) can be designed in such a way as to always increase in price has to be dismissed as crackpottery.
by lottin 5y ago
The idea that a product (e.g. bitcoin) can be designed in such a way as to always increase in price has to be dismissed as crackpottery.
- cwkoss 5y agoEverything that has a fixed quantity will always increase in price (assuming the Fed continues inflating the currency 1-5% /yr) Land, collectibles, natural resources, Bitcoin: as long as they are priced in USD and USD is constantly devalued year after year - prices will rise.
- lottin 5y agoA fixed quantity only means that the supply is inelastic, it doesn't —by any stretch of the imagination— mean that the price will always increase. The only thing that is guaranteed to increase in price, assuming a positive rate of inflation, is a large basket of goods and services. Anything else is a gamble.
- mavhc 5y agoa) There's a limited supply of bitcoins b) The amount of bitcoin you get decreases as more are made c) The larger the network the more it costs to make a bitcoin d) Some bitcoin are deleted forever, accidentally. So a) Bitcoins become harder to make, and b) The total possible number of Bitcoins goes down.