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The conviction some commentators have that somehow Bitcoin is more secure, ethical and predictable than FIAT (central-bank-controlled) currency is hilarious. G
by atmosx 13y ago
The conviction some commentators have that somehow Bitcoin is more secure, ethical and predictable than FIAT (central-bank-controlled) currency is hilarious.
Given the fact that 98% of BTC belong to 2% of portfolios and there's a way stronger anonymity compared to fiat currency (you all know who Bernanke is and where his power comes from) and early adopters can drive easily the market up or down. Personally I believe that's the main reason BTC didn't fall after SR bust. Because, what most believe is not controlled is TOTALLY controlled (big players didn't opt out).
That said I can see how BTC is useful and has awesome qualities, especially for people who understand technicalities of a digital currency and how money works.
However, BTC is a hoarding system. Much like gold and nothing like fiat. BTC is not inflationary, by design. Inflation is the first quality a fiat currency must have, in order make people willing to spend.
- phaemon 13y ago> Inflation is the first quality a fiat currency must have, in order make people willing to spend. If that were true, no-one would have bought an iPhone and Apple would be penniless (USD etc are deflationary relative to technology items).
- clienthunter 13y ago"Deflationary relative to technology items" Sorry, what?
- phaemon 13y agoDeflation is relative. One thing is deflationary relative to another. Dollars are deflationary relative to iPhones. Dollars are inflationary relative to Oil. People will buy oil because if they wait to buy it tomorrow their dollars will buy them less. People won't buy iPhones because if they wait to buy it tomorrow their dollars will buy them more.
- atmosx 13y agoThat is true and should (at this point in history) be taken for granted. The iPhones in Europe had for years the same price. So I don't really understand your example. Could you elaborate ?
- phaemon 13y agoWell, Apple was perhaps a bad example since they tend to hold their value for a little longer than most brands, but iPhones weren't the same price for years. I really don't know where you got that from. An iPhone 4 is far cheaper now than it was on release 3 years ago.
- atmosx 13y agoI live in Greece I don't know the exact amount but basically every new version of the iPhone had the same price (say 620 € for 16GB). However, inflation is measured against CPI (consumer price index) not a single product which might have specific market niche (i.e. Luxury goods). Now, a currency that doesn't slightly inflated tends to be seen as an investment by consumers rather than an exchange medium. I would very much welcome bitcoins as a payment since I believe their value will go up in the future, but how many people are willing to end bit coins instead of dollars?