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Is bitcoin a currency or investment? I would say neither but interesting to see it getting lumped in with investments.
by infecto 3y ago
Is bitcoin a currency or investment? I would say neither but interesting to see it getting lumped in with investments.
- polygamous_bat 3y agoBitcoin is Schrödinger’s asset, in the sense that it is whatever it needs to be to counter the latest criticisms from non-believers. For example, if you say that bitcoin has 7 tps and even with lightning will take decades to onboard everyone, it will become a store of value that you are supposed to buy and hold for long term. But if you point out how bitcoin has crazy volatility, it may become a currency that you don’t hold, just use to transact.
- infecto 3y agoI am happy that you understood where I was going with this. People whip up whatever they need it to be to make an argument. Sometimes we call it a currency because we can use it to buy things, other times its an investment. To reliably fit in either of those buckets is exclusive. To be a currency you need to be a store of value that is not fluctuation a lot, this means its a terrible investment vehicle.
- toenail 3y agoYou're right, bitcoin is something entirely new, and we don't know the future, so we don't know what it will end up being.
- paulryanrogers 3y agoEntirely new is a stretch. And haven't we reached the end? It's not broadly useful nor sustainable nor trustworthy.
- almost_usual 3y agoI’d argue it’s useful for many people who live in countries that suffer from hyperinflation.
- kjkjadksj 3y agoI feel like an asset that doesn't rise or fall by a factor of 10 a year would be a lot more useful for that purpose. Even bartering levis blue jeans would offer more price stability than btc.
- deleted 3y ago[deleted]
- almost_usual 3y agoBlue jeans aren’t very salable in the sense that you have to find a blue jeans buyer in order to exchange them for something else.
- kjkjadksj 3y agoLikewise for bitcoin. In either case the levis conversion rate is pretty stable unlike bitcoin. You can go on marketplaces like poshmark and others and readily buy and sell these jeans at prices that are both stable and widely agreed upon.
- toenail 3y agoYou're not one of the "it's not useful to me, so it's not useful to anybody" people, are you?
- idiotsecant 3y agoEntirely new? At this point it's getting a little long in the tooth, if anything
- kkielhofner 3y agoBitcoin is almost 15 years old. This is like calling the web “new” in 2005-2008 (depending on chosen start date). The “new” excuses ran out a decade ago.
- elif 3y agoBitcoin is a commoditized idea of sovereign value. It can be seen as an investment by those who bet on a rise in demand for sovereign value, and can be seen as a currency by those who doubt the ability of fiat value to continue indefinitely.
- hiatus 3y agoI don't understand the importance of this distinction. People invest in currencies all the time.
- infecto 3y agoI think its important because to be a good investment vehicle means it probably should not be considered a currency, to be a reliable currency means it should be a terrible investment vehicle. Sure, its possible to say it can be both but I think to be be reliable in either is exclusive. And while there are indeed large currency markets, it is not very common on a population basis due to it being very much a speculators game requiring massive amounts of leverage for the average net worth.
- kjkjadksj 3y agoWhen it goes from being worth less than a dollar to sixty thousand dollars in a few years, its an investment not much different than a limited baseball card.