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Bitcoin behaves exactly like a fiat currency would if driven completely by market forces. It's a good thought experiment in what the exchange rate would look li
by glitchc 8mo ago
Bitcoin behaves exactly like a fiat currency would if driven completely by market forces. It's a good thought experiment in what the exchange rate would look like if the currency value is purely derived from demand and supply.
- jjgreen 8mo agoI've never understood why you'd need a currency specifically for Italian cars.
- ahartmetz 8mo agoTwo actually! Fiat vs Ferrari. https://ferrari-imports.enigmatechnologies.dev/ https://ferrari-imports.enigmatechnologies.dev/
- lern_too_spel 8mo agoNo, it behaves like a speculative asset. The price goes up as long as the number of people who believe it will go up increases, causing more people to buy it. Once the supply of greater fools is exhausted, there is no reason for anybody to hold it because it's price isn't going up, so they sell to find something else that goes up. This causes more people to sell so they don't lose more until the price falls to the non-speculative utility of the asset, which is 0.