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gold and crypto protect against inflation? gold i kinda understand, but crypto? how?
by shreyshnaccount 4y ago
gold and crypto protect against inflation? gold i kinda understand, but crypto? how?
- atemerev 4y agoTheoretically, Bitcoin is a deflationary asset, it’s supply is limited. In practice, crypto is very prone to hype cycles.
- JumpCrisscross 4y ago> Theoretically, Bitcoin is a deflationary asset, it’s supply is limited Assets aren’t inflationary or deflationary. Prices are. Prices, denominated in crypto, have inflated through the moon this year as the value of the currencies crashed. There are plenty of things in the world with naturally or artificially fixed supply. Anyone pitching them as deflationary is talking tripe.
- shreyshnaccount 4y agowrong, a true asset of that class would not only limit but actively reduce the number of tokens in circulation afaik
- thargor90 4y agocrypto was sold as a deflationary investment, because supply of some crypto currencies is limited, i.e. no more than 21 million bitcoins are planned to be mined in total.
- SketchySeaBeast 4y agoThat's the exact reason I have all my Star Trek TNG collectible plates! Only 1000 made baby!
- hef19898 4y agoCan I have NFT for one of those?
- SketchySeaBeast 4y agoBased upon my understanding of the current state of NFT's you can make an NFT of whatever you want, even if it's the copyrighted media of someone else.
- andsoitis 4y ago> because supply of some crypto currencies is limited, i.e. no more than 21 million bitcoins are planned to be mined in total. But herein lies the trap. While any particular crypto currency may have limited supply, there is theoretically an infinite amount of crypto currency (people can and do create new ones out of thin air when an existing one has run its course). To top it off, these are not productive assets.