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Is it? There's no reserve rate on the books but there's still a natural interest rate. And I'd estimate that for something like Bitcoin it's sky high. That's ho
by tootie 4y ago
Is it? There's no reserve rate on the books but there's still a natural interest rate. And I'd estimate that for something like Bitcoin it's sky high. That's how it produced massive returns with no equity or assets. When Bitcoin was first launched, economists said the mining and splitting algorithm would be massively deflationary and that seems to have come true.
- JumpCrisscross 4y ago> would be massively deflationary and that seems to have come true Bitcoin makes Argentina and Venezuela look like bastions of hard money. It’s lost purchasing power, i.e. inflated, at an astronomical rate.
- isolli 4y agoIt depends on the observation window, really. Bitcoin is deflationary in the sense that there is a maximum amount of BTC that will ever be mined. So, all else equal, the price of bitcoin should go up relative to other assets as the economy grows (and the stock of bitcoin does not). Of course, it might implode along the way, and there are plenty of wild swings on the way up (which what we've seen so far).
- tootie 4y agoIn the past year, yes. I'm talking about the bull run years. It's well below it's peak but still trading around $16k when it was worth $0 15 years ago.
- qnr 4y agoThis is blatantly untrue. Venezuelan bolivar has lost 100% of its value (within a rounding error) - current exchange rate is something like 800 trillion of old bolivars to USD. Argentine peso is doing somewhat better than bitcoin this year, only losing 40%, but you don't have to go far back for it to become much, much worse. In the entire history of bitcoin there are very few periods when you'd come out on top holding argentine pesos rather than bitcoins.