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isn't that equivalent to asking why anyone would be foolish enough to not have 100% of their money in bitcoins given its meteoric rise over the past few weeks?

isn't that equivalent to asking why anyone would be foolish enough to not have 100% of their money in bitcoins given its meteoric rise over the past few weeks? There are reasons to not have all your money in bitcoins, therefore there are reasons to sell bitcoins (even if you just bought them specifically for that transaction (for the anonymity for example)) edit: I realised this sounds a bit snarky, but I'm honestly curious. Is buying with bitcoins really that different from not investing in bitcoins?

jfarmer 14y ago
When a currency is experiencing deflation it makes sense not to spend it. In that world, keeping my money under my mattress is the soundest investment strategy. Why would I buy anything with my bitcoins if a week from now they're going to be work X% more? I'd just wait until then.
- kurtko 14y ago
  Correct, but how certain are you that it will continue to deflate? It has already once lost 90% of its value in a short period after a parabolic rise. Could it not do that again?
- shawabawa3 14y ago
  > Why would I buy anything with my bitcoins if a week from now they're going to be work X% more? I'd just wait until then. If you believe this, then surely you also believe you should invest 100% of your money in bitcoins? If not, then you believe only X% of your money should be invested in bitcoins (to avoid the risk of losing everything in a collapse) Therefore if you have >X% of your money in bitcoins, you should spend some.
- dnaquin 14y ago
  > When a currency is experiencing deflation it makes sense not to spend it. In that world, keeping my money under my mattress is the soundest investment strategy. A does not imply B. If the currency deflates at 1% but you could invest at 2%, your mattress isn't the most sound investment strategy.
  - dyno12345 14y ago
    Bitcoin is deflating at a far greater rate than you could make investing without some kind of extremely leveraged scheme.

jfarmer 14y ago

When a currency is experiencing deflation it makes sense not to spend it. In that world, keeping my money under my mattress is the soundest investment strategy. Why would I buy anything with my bitcoins if a week from now they're going to be work X% more? I'd just wait until then.

kurtko 14y ago
Correct, but how certain are you that it will continue to deflate? It has already once lost 90% of its value in a short period after a parabolic rise. Could it not do that again?
shawabawa3 14y ago
> Why would I buy anything with my bitcoins if a week from now they're going to be work X% more? I'd just wait until then. If you believe this, then surely you also believe you should invest 100% of your money in bitcoins? If not, then you believe only X% of your money should be invested in bitcoins (to avoid the risk of losing everything in a collapse) Therefore if you have >X% of your money in bitcoins, you should spend some.
dnaquin 14y ago
> When a currency is experiencing deflation it makes sense not to spend it. In that world, keeping my money under my mattress is the soundest investment strategy. A does not imply B. If the currency deflates at 1% but you could invest at 2%, your mattress isn't the most sound investment strategy.
- dyno12345 14y ago
  Bitcoin is deflating at a far greater rate than you could make investing without some kind of extremely leveraged scheme.