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All the disadvantages Except inflation. The amount of Dollars has tripled since Bitcoin was invented: https://fred.stlouisfed.org/series/BOGMBASE https://fred

All the disadvantages Except inflation. The amount of Dollars has tripled since Bitcoin was invented: https://fred.stlouisfed.org/series/BOGMBASE https://fred.stlouisfed.org/series/BOGMBASE Bitcoin is capped at 21 million. The Dollar is expected to lose almost all value over the lifetime of a person. Warren Buffett once noted that the Dollar already lost over 90% of it's value during his lifetime. With Bitcoin, there is no such expectation.

auc 2y ago
Finite amount of gold as well. Finite amount of bitcoin cash as well. Finite amount of real estate as well.
- ArtTimeInvestor 2y ago
  The amount of Gold in circulation rises by about 2% per year. For new real estate, there is also basically an infinite amount that can be added to the market. Planet earth is still mostly unused. Bitcoin Cash has no USP that could lead to it becoming the digital Gold instead of Bitcoin.
  - FabHK 2y ago
    What's the irrevocable USP that Bitcoin has? Is it because it was first, like Yahoo, MySpace, and Friendster?
    - ArtTimeInvestor 2y ago
      Yahoo, MySapce and Friendster are services. Bitcoin is a protocol. Like TCP: https://en.wikipedia.org/wiki/Transmission_Control_Protocol https://en.wikipedia.org/wiki/Transmission_Control_Protocol
  - auc 2y ago
    The amount of BTC in circulation is increasing per year as well. There’s a finite amount of gold on Earth. Real estate is definitely not “infinite”. Especially if you consider arable land and weather patterns.
FabHK 2y ago
This is nonsense. Money supply is related to inflation, but not the same, and the graph you showed is the clearest proof of that - money supply shot up in the wake of the GFC, while inflation reared its ugly head only in the wake of supply side shocks due to war and pandemic. Any savings beyond a few months worth of cushion should not be held in cash anyway, but in equity and debt, which support productive investments. These have yielded positive results over these timeframes. (And BTW, both US equity and US corporate debt have outperformed gold over the last century or so.) Even if you go for risk-free treasuries: long term real rates have mostly been positive [0], while short real rates have been hovering around, but in the last decade and a half below, zero [1], granted. But these rates are determined by economy wide equilibrium processes that can't be overcome by some magic beans and a bad database. (Note that there are some 10,000 coins with strictly limited supply. They will not ipso facto outperform the dollar.) [0] https://fred.stlouisfed.org/series/REAINTRATREARAT10Y https://fred.stlouisfed.org/series/REAINTRATREARAT10Y [1] https://fred.stlouisfed.org/series/REAINTRATREARAT1MO https://fred.stlouisfed.org/series/REAINTRATREARAT1MO
stouset 2y ago
> The Dollar is expected to lose almost all value over the lifetime of a person. Warren Buffett once noted that the Dollar already lost over 90% of it's value during his lifetime. With Bitcoin, there is no such expectation. You’ve taken the wrong lesson from this, and the fact that Warren Buffett isn’t a pauper should be your biggest clue. This is why it’s important to invest real dollars in productive assets. The actual issue that needs solving is that real wages haven’t been rising to match inflation for the last nearly fifty years.
- nout 2y ago
  Why haven't the real wages risen to match inflation since the 1970s?
  - gloomyday 2y ago
    That's an excellent question, and I can tell you it involves a lot of politics.
itsoktocry 2y ago
Being able to create currency is a feature, not a bug. The idea that an economy has a fixed amount of currency makes no sense. You want it to be available to facilitate transactions.
Zamiel_Snawley 2y ago
Well the number of BTC went from zero to ~twenty million in that time, not really zero inflation. If the treasury could credibly say “we will only ever print 2^64 dollars”, that wouldn’t make it inflation free, just a maximum possible denominator.

auc 2y ago

Finite amount of gold as well. Finite amount of bitcoin cash as well. Finite amount of real estate as well.

ArtTimeInvestor 2y ago
The amount of Gold in circulation rises by about 2% per year. For new real estate, there is also basically an infinite amount that can be added to the market. Planet earth is still mostly unused. Bitcoin Cash has no USP that could lead to it becoming the digital Gold instead of Bitcoin.
- FabHK 2y ago
  What's the irrevocable USP that Bitcoin has? Is it because it was first, like Yahoo, MySpace, and Friendster?
  - ArtTimeInvestor 2y ago
    Yahoo, MySapce and Friendster are services. Bitcoin is a protocol. Like TCP: https://en.wikipedia.org/wiki/Transmission_Control_Protocol https://en.wikipedia.org/wiki/Transmission_Control_Protocol
- auc 2y ago
  The amount of BTC in circulation is increasing per year as well. There’s a finite amount of gold on Earth. Real estate is definitely not “infinite”. Especially if you consider arable land and weather patterns.

FabHK 2y ago

This is nonsense. Money supply is related to inflation, but not the same, and the graph you showed is the clearest proof of that - money supply shot up in the wake of the GFC, while inflation reared its ugly head only in the wake of supply side shocks due to war and pandemic. Any savings beyond a few months worth of cushion should not be held in cash anyway, but in equity and debt, which support productive investments. These have yielded positive results over these timeframes. (And BTW, both US equity and US corporate debt have outperformed gold over the last century or so.) Even if you go for risk-free treasuries: long term real rates have mostly been positive [0], while short real rates have been hovering around, but in the last decade and a half below, zero [1], granted. But these rates are determined by economy wide equilibrium processes that can't be overcome by some magic beans and a bad database. (Note that there are some 10,000 coins with strictly limited supply. They will not ipso facto outperform the dollar.) [0] https://fred.stlouisfed.org/series/REAINTRATREARAT10Y https://fred.stlouisfed.org/series/REAINTRATREARAT10Y [1] https://fred.stlouisfed.org/series/REAINTRATREARAT1MO https://fred.stlouisfed.org/series/REAINTRATREARAT1MO

stouset 2y ago

> The Dollar is expected to lose almost all value over the lifetime of a person. Warren Buffett once noted that the Dollar already lost over 90% of it's value during his lifetime. With Bitcoin, there is no such expectation. You’ve taken the wrong lesson from this, and the fact that Warren Buffett isn’t a pauper should be your biggest clue. This is why it’s important to invest real dollars in productive assets. The actual issue that needs solving is that real wages haven’t been rising to match inflation for the last nearly fifty years.

nout 2y ago
Why haven't the real wages risen to match inflation since the 1970s?
- gloomyday 2y ago
  That's an excellent question, and I can tell you it involves a lot of politics.

itsoktocry 2y ago

Being able to create currency is a feature, not a bug. The idea that an economy has a fixed amount of currency makes no sense. You want it to be available to facilitate transactions.

Zamiel_Snawley 2y ago

Well the number of BTC went from zero to ~twenty million in that time, not really zero inflation. If the treasury could credibly say “we will only ever print 2^64 dollars”, that wouldn’t make it inflation free, just a maximum possible denominator.