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This is to say that if demand outpaces supply, price is going to go up. However, this is true of any asset. So why mention specifically 'crypto', as if there
by lottin 4y ago
This is to say that if demand outpaces supply, price is going to go up. However, this is true of any asset. So why mention specifically 'crypto', as if there was something magical about 'crypto' that means it's bound to go up?
- danuker 4y agoMy point is yes, it is true of any asset. You might as well own cans of beans. But the purpose is to stave off the effects of monetary expansion while staying liquid. Cryptocurrency is in a special niche in that parameter space. While other assets are bound to provide long-term returns greater than inflation (for example, stocks and bonds [1]), cryptocurrency can not surpass inflation long-term, but it still does so while demand is growing. In addition, even after it reaches a stable demand (which I reckon will be in 5-10 years, with market saturation), it will be a means of diversification (like gold is currently). [1] - https://totalrealreturns.com/ https://totalrealreturns.com/