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It doesn't need to take over the world, or even be practical for spending. Simply being a place one can park money that cannot be inflated / printed away is eno
by moduspol 4y ago
It doesn't need to take over the world, or even be practical for spending. Simply being a place one can park money that cannot be inflated / printed away is enough to justify it.
And besides, twelve recession-free years doesn't mean a whole lot for a brand new class of currency. We'll see where money goes when there's nowhere good to invest it AND fiat currency is being inflated like crazy.
- jfk13 4y ago> a place one can park money ...that can collapse in value at any time, without regard to real-world economics. Should I really park my retirement savings in Bitcoin, to ensure they don't get inflated away?
- ntoskrnl 4y agoThere's more than just index funds out there. People park their money in art, stamps, antiques, rare coins, watches, real estate in the tundra. What does a Monet have to do with real-world economics, other than the hope that we all continue to agree it's valuable?
- giaour 4y agoPlease don't put your retirement savings in fine art or antiques unless you have spare funds that you can stand to lose. Collectibles consume wealth (maintenance costs) and do not produce it, so the only way you can make money is by accurately predicting what will be popular and paying to hold onto it for years. Most art and antiques decline in value over time, but you can get lucky. You should absolutely buy art that you love and can afford, but you should think of it as a consumable that can retain some resale value (like a car) and not as an investment. Rural land is a slightly different story, as there is some underlying productivity there (e.g. agricultural use, or maybe there's something to mine), but tundra real estate doesn't sound like a great buy.
- jfk13 4y agoFinally, a comment that makes sense. :)
- Cd00d 4y agoI think what a Monet has to do with real-world economics boils down to tax avoidance schemes.
- notahacker 4y ago> We'll see where money goes when there's nowhere good to invest it AND fiat currency is being inflated like crazy We're literally seeing that now. The money is flowing out of BTC even faster than all the other investments losing value. The original article is overstated and lacks nuance, but he's not wrong on that point.
- cpurdy 4y ago>We're literally seeing that now. The money is flowing out of BTC even faster than all the other investments losing value. Yes, but other than that, how did you enjoy the play, Mrs. Lincoln?
- ephbit 4y agoWhen people are talking about "inflation" my inclination is to think about at least 2-3 years as a time frame. > We're literally seeing that now. The money is flowing out of BTC even faster than all the other investments losing value. Yes, currently BTC apparently isn't becoming more valuable. But that's not all that relevant to people who're interested in it for the sake of inflation / store of value.
- brianwawok 4y agoPark money in an imaginary currency? Like… buy a piece of farmland instead. Buy oil or steel. Buy something that has some value. It’s very likely Bitcoin randomly goes to 0. I can’t imagine a long term world in which a random plot of land in Nebraska goes to 0….
- dieselgate 4y agoYour comment reminded me of that song by Busdriver “Kids, if you want to piss off your parents buy real estate in an imaginary place”
- criddell 4y ago> Simply being a place one can park money that cannot be inflated / printed away is enough to justify it. If you parked your money in Bitcoin on Jan 1 because you were worried about inflation that was coming, today that money would only have about 60% of the purchasing power.