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To nitpick, Bitcoin doesn’t currently have a fixed supply. It has a supply cap that takes effect sometime in 2140. Bitcoin currently inflates by 6.25 BTC every

by lowkey 4y ago

To nitpick, Bitcoin doesn’t currently have a fixed supply. It has a supply cap that takes effect sometime in 2140. Bitcoin currently inflates by 6.25 BTC every ~10 minutes. For the record, I agree that early Bitcoiners took an incredible risk on a highly volatile asset and they should be rewarded for such. As I see it, this latest banking crisis is showing the world that there is more than one type of risk. Bitcoin has market risk but not counter-party risk. As for bank deposits, while they have minimal market risk, they have significant counter-party risk. The world is waking up to the fact that bank deposits are an unsecured loan to a risky counter-party that uses those deposits for highly leveraged speculative bets.

HashBasher 4y ago
Agreed, self-custodied bitcoin is the best way to mitigate third party risk. If some of these start-ups held a small amount of their reserves in bitcoin, they would not have had to panic to make payroll.
fellellor 4y ago
Haven’t they already been rewarded for it? The magic Internet money is worth more than 20k USD, whereas it started out at 0.
- HashBasher 4y ago
  They have and they deserve it. As bitcoin continues it's journey higher, all bitcoiners will be well rewarded (new or old).
csomar 4y ago
The big revelation is that deposits in a bank have two risks actually: A counter-party risk as you mentioned, but also a market risk. Inflation was/is in the double digit across the Euro and US economies. And that's for the government (CPI) numbers. People never considered these risks before. A bank is a bank is a bank. And in the developed world, inflation is low. Now you have a situation where both narratives are being challenged. The system is under lots of strain.
shjake 4y ago
Is there though? I mean now all deposits seem to be covered 100% with no limit. That makes the less risky than they were 2 weeks ago, doesn’t it?

by lowkey 4y ago

HashBasher 4y ago

Agreed, self-custodied bitcoin is the best way to mitigate third party risk. If some of these start-ups held a small amount of their reserves in bitcoin, they would not have had to panic to make payroll.

fellellor 4y ago

Haven’t they already been rewarded for it? The magic Internet money is worth more than 20k USD, whereas it started out at 0.

HashBasher 4y ago
They have and they deserve it. As bitcoin continues it's journey higher, all bitcoiners will be well rewarded (new or old).

csomar 4y ago

The big revelation is that deposits in a bank have two risks actually: A counter-party risk as you mentioned, but also a market risk. Inflation was/is in the double digit across the Euro and US economies. And that's for the government (CPI) numbers. People never considered these risks before. A bank is a bank is a bank. And in the developed world, inflation is low. Now you have a situation where both narratives are being challenged. The system is under lots of strain.

shjake 4y ago

Is there though? I mean now all deposits seem to be covered 100% with no limit. That makes the less risky than they were 2 weeks ago, doesn’t it?