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There is economic value in inflation resistance, censorship resistance, and privacy. The fact most get-rich-traders do not care about these things and -also- sp

by lrvick 4y ago

There is economic value in inflation resistance, censorship resistance, and privacy. The fact most get-rich-traders do not care about these things and -also- speculate is irrelevant to the fundamental value.

JumpCrisscross 4y ago
> inflation resistance Bitcoin hyperinflated in the last year.
- lrvick 4y ago
  There is a fixed total amount of Bitcoin that will ever exist, and they are released the the market over time. Bitcoin is not inflationary.
  - JumpCrisscross 4y ago
    > fixed total amount of Bitcoin that will ever exist It has a fixed supply. (Currently. An unknown number of miners could always increase it.) > Bitcoin is not inflationary Of course it is. One Bitcoin buys 75% fewer goods and services than it did a year ago. Taking advantage of people who mistake money supply for inflation is one of crypto’s scams.
    - andirk 4y ago
      When one says bitcoin is not inflationary, they mean that the supply does not inflate. You are accurate that bitcoin's purchasing power can wane aka deflate. In my opinion and many others it is moot because everything deflates. As far as we know, there is not a single thing in existence that is void of inflation by your usage of the term. Therefore, we move beyond that version of the definition to the practical and useful definition which is that it cannot be added to numerically. English is my first language and those sentences are crap, but I think you get what I mean.
      - JumpCrisscross 4y ago
        > When one says bitcoin is not inflationary, they mean that the supply does not inflate This is wrong. Not matter of opinion wrong, factually wrong. > bitcoin's purchasing power can wane aka deflate This is also wrong. Waning purchasing power is the definition of inflation. Bitcoin was marketed as an inflation hedge. It hyperinflated. Solving that by redefining inflation is dishonest. > the practical and useful definition which is that it cannot be added to numerically This is the opposite. It’s taking the practical definition, which relates to purchasing power, and replacing it with a technical curiosity. Which is also, again, wrong: a small group of miners can amend the protocol to keep the gravy train running.
        andirk 4y ago
        > a small group of miners can amend the protocol You mean a large group of miners, right? And please don't negate what someone says with just "that's wrong". How is that helpful? I clearly said the literal definition of inflation is not useful because every single thing in existence is inflationary meaning bitcoin is as inflationary as every other thing. We use the term in regards to money as meaning the supply doesn't increase and I believe you are fully aware of that.
nikanj 4y ago
Tell me how many BTC a new TV is going to be in two years, I'll tell you how many USD it'll be. As a stable, inflation-resistant currency, the BTC value should be easy to predict
- lrvick 4y ago
  The simple moving average for 1BTC should be around $50,000, so a $500 TV will be about 0.01BTC. Hype or fear may drive the price higher or lower than that, but if you regularly buy and spend bitcoin then the swings average out back to the simple moving average over time, which reliably increases against USD. I get paid a fixed USD amount of Bitcoin every month regardless of price so my exposure to it similarly averages out.
  - nikanj 4y ago
    Why don’t you get a fixed BTC amount? Why anchor it to USD if BTC is the more stable option?
mrkeen 4y ago
> inflation resistance If you bought at 60 000 and are now at 16 000, your cost of goods has gone way up. (That is, if you could exchange bitcoin for goods anywhere).

by lrvick 4y ago

JumpCrisscross 4y ago

> inflation resistance Bitcoin hyperinflated in the last year.

lrvick 4y ago
There is a fixed total amount of Bitcoin that will ever exist, and they are released the the market over time. Bitcoin is not inflationary.
- JumpCrisscross 4y ago
  > fixed total amount of Bitcoin that will ever exist It has a fixed supply. (Currently. An unknown number of miners could always increase it.) > Bitcoin is not inflationary Of course it is. One Bitcoin buys 75% fewer goods and services than it did a year ago. Taking advantage of people who mistake money supply for inflation is one of crypto’s scams.
  - andirk 4y ago
    When one says bitcoin is not inflationary, they mean that the supply does not inflate. You are accurate that bitcoin's purchasing power can wane aka deflate. In my opinion and many others it is moot because everything deflates. As far as we know, there is not a single thing in existence that is void of inflation by your usage of the term. Therefore, we move beyond that version of the definition to the practical and useful definition which is that it cannot be added to numerically. English is my first language and those sentences are crap, but I think you get what I mean.
    - JumpCrisscross 4y ago
      > When one says bitcoin is not inflationary, they mean that the supply does not inflate This is wrong. Not matter of opinion wrong, factually wrong. > bitcoin's purchasing power can wane aka deflate This is also wrong. Waning purchasing power is the definition of inflation. Bitcoin was marketed as an inflation hedge. It hyperinflated. Solving that by redefining inflation is dishonest. > the practical and useful definition which is that it cannot be added to numerically This is the opposite. It’s taking the practical definition, which relates to purchasing power, and replacing it with a technical curiosity. Which is also, again, wrong: a small group of miners can amend the protocol to keep the gravy train running.
      - andirk 4y ago
        > a small group of miners can amend the protocol You mean a large group of miners, right? And please don't negate what someone says with just "that's wrong". How is that helpful? I clearly said the literal definition of inflation is not useful because every single thing in existence is inflationary meaning bitcoin is as inflationary as every other thing. We use the term in regards to money as meaning the supply doesn't increase and I believe you are fully aware of that.

nikanj 4y ago

Tell me how many BTC a new TV is going to be in two years, I'll tell you how many USD it'll be. As a stable, inflation-resistant currency, the BTC value should be easy to predict

lrvick 4y ago
The simple moving average for 1BTC should be around $50,000, so a $500 TV will be about 0.01BTC. Hype or fear may drive the price higher or lower than that, but if you regularly buy and spend bitcoin then the swings average out back to the simple moving average over time, which reliably increases against USD. I get paid a fixed USD amount of Bitcoin every month regardless of price so my exposure to it similarly averages out.
- nikanj 4y ago
  Why don’t you get a fixed BTC amount? Why anchor it to USD if BTC is the more stable option?

mrkeen 4y ago

> inflation resistance If you bought at 60 000 and are now at 16 000, your cost of goods has gone way up. (That is, if you could exchange bitcoin for goods anywhere).