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Again, several economists, such as Paul Krugman, have pointed out that Bitcoin is a bit like gold in that it will be attractive when real interest rates are roc
by lkrubner 5y ago
Again, several economists, such as Paul Krugman, have pointed out that Bitcoin is a bit like gold in that it will be attractive when real interest rates are rock bottom, but it will be a laggard in an environment of rising interest rates. The long era after the crisis of 2008, when interest rates were 0%, were ideal for Bitcoin. But we are now entering an era of rising inflation and rising rates, and so Bitcoin is likely to do poorly in the years ahead.
- TechBro8615 5y agoI found this comment confusing, because I’ve only ever cited the opinion of Paul Krugman as evidence that its opposite must be true.
- landemva 5y agoUnlike gold coin in drawer, it is straightforward to earn yield on crypto. Some methods of crypto yield are centralized, and some are not.
- toomuchtodo 5y agoCrypto yield has to compete with similar risk adjusted returns from securities with an underlying in a rising interest rate environment.