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> system of recklessness that drove the price of Bitcoin to astronomical heights only to crash. I am probably going to sound extremely naive and uneducated; bu
by azangru 4y ago
> system of recklessness that drove the price of Bitcoin to astronomical heights only to crash.
I am probably going to sound extremely naive and uneducated; but when we say "price of Bitcoin", don't we normally mean its value relative to fiat currencies? And isn't it true that our regular fiat currencies are inherently inflationary, and thus not a good long-term storage of value? Wouldn't the lack of trust in fiat currencies drive the price of Bitcoin too?
- thr0wawayf00 4y agoYes, fiat currencies are inflationary and not a good long-term storage of value. > Wouldn't the lack of trust in fiat currencies drive the price of Bitcoin too? Only if the market believed that bitcoin is safer than fiat currency (which it's not). This is one aspect of the hyperinflation argument that gets overlooked. In order to have a hyperinflationary event, there must be an inherently more stable storage of value that everyone is trying to migrate to, which drives the value of the hyperinflated currency down. As it stands, fiat currencies are still way more trustworthy than crypto, primarily because crypto markets itself as a currency while being traded like a speculative asset. Currencies need to be stable in order to be trusted, bitcoin is not.