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Saying "Bitcoin is not a Store of Value" is not the same as saying "Bitcoin has no value," because of course it does as long as people think it does. I transla

Saying "Bitcoin is not a Store of Value" is not the same as saying "Bitcoin has no value," because of course it does as long as people think it does. I translate the original title to "Bitcoin is a terrible store of value", which I already knew, especially since the 75% drop in value. Yes I know, it's gone up a bazillion percent since 2012, but trees don't grow to the sky and saying otherwise is the kind of thing they tell suckers at casinos along with "There's only 21 million that can ever be mined so they are guaranteed to go up due to scarcity that can't fulfill demand." The demand part of the equation is unknowable and could go to zero.

betwixthewires 4y ago
Read the article. It's talking about something entirely different.
- michaelwww 4y ago
  I did read the article. Your dismissive comment is typically what I get in these threads > Some people actually believe that Bitcoin is “thermodynamically backed”. This is utter nonsense. There's no such thing. BTC is backed by demand just like everything else in the world. Remove the demand and price falls. How am I so far off? Author is talking about value measured by price and the effect on that value by demand.
  - betwixthewires 4y ago
    Itst talking about how capital inflows must continue to match capital outflows that exist in the form of energy expenditure.
    - deleted 4y ago
      [deleted]
    - michaelwww 4y ago
      Yes, I got that, but I don't think it has much to do with Bitcoin being a good store of value. The price of Bitcoin isn't set by the price of electricity.
      - betwixthewires 4y ago
        No, but the price of bitcoin is set by supply and demand. And because miners have to liquidate bitcoin to stay afloat, the price will go down without new demand. An asset who's price goes down doesn't store value, an asset which continuously requires new entrants isn't a store of value.
        michaelwww 4y ago
        > the price will go down without new demand There isn't a fixed pool of demand that miners are slowing bleeding away. I starting rejecting the article while reading it as an unrealistic thought experiment. I guess my point is there are so many ways demand could drop. Demand goes in cycles and no one can predict. I just thought of this so blue sky: What if Satoshi Nakamoto reappeared with a new coin and a new proof that didn't use large amounts of electricity? What would BTC be worth when everyone was selling it to buy this new coin? Or would Satoshi let people swap BTC for his new coin? A true Black Swan event.
        betwixthewires 4y ago
        There isn't a fixed pool, but there's a minimum threshold of required new demand that is equal to the energy expenditure of mining. That threshold is proportional to the security of the network.

betwixthewires 4y ago

Read the article. It's talking about something entirely different.

michaelwww 4y ago
I did read the article. Your dismissive comment is typically what I get in these threads > Some people actually believe that Bitcoin is “thermodynamically backed”. This is utter nonsense. There's no such thing. BTC is backed by demand just like everything else in the world. Remove the demand and price falls. How am I so far off? Author is talking about value measured by price and the effect on that value by demand.
- betwixthewires 4y ago
  Itst talking about how capital inflows must continue to match capital outflows that exist in the form of energy expenditure.
  - deleted 4y ago
    [deleted]
  - michaelwww 4y ago
    Yes, I got that, but I don't think it has much to do with Bitcoin being a good store of value. The price of Bitcoin isn't set by the price of electricity.
    - betwixthewires 4y ago
      No, but the price of bitcoin is set by supply and demand. And because miners have to liquidate bitcoin to stay afloat, the price will go down without new demand. An asset who's price goes down doesn't store value, an asset which continuously requires new entrants isn't a store of value.
      - michaelwww 4y ago
        > the price will go down without new demand There isn't a fixed pool of demand that miners are slowing bleeding away. I starting rejecting the article while reading it as an unrealistic thought experiment. I guess my point is there are so many ways demand could drop. Demand goes in cycles and no one can predict. I just thought of this so blue sky: What if Satoshi Nakamoto reappeared with a new coin and a new proof that didn't use large amounts of electricity? What would BTC be worth when everyone was selling it to buy this new coin? Or would Satoshi let people swap BTC for his new coin? A true Black Swan event.
        betwixthewires 4y ago
        There isn't a fixed pool, but there's a minimum threshold of required new demand that is equal to the energy expenditure of mining. That threshold is proportional to the security of the network.