2 ms·
You seem to believe that the value of bitcoin could possibly be more predictable than the value of traditional currencies. Since bitcoin will be / is almost exc
by gahahaha 13y ago
You seem to believe that the value of bitcoin could possibly be more predictable than the value of traditional currencies. Since bitcoin will be / is almost exclusively an investment vehicle it will (almost by definition) have an unpredictable value. [1] Traditional currencies will be somewhat predictable because they have a central bank actively managing the supply.
[1] http://en.wikipedia.org/wiki/A_Random_Walk_Down_Wall_Street http://en.wikipedia.org/wiki/A_Random_Walk_Down_Wall_Street
- alexeisadeski3 13y agoGiven equal liquidity, a purer market should deliver less volatility than an actively managed one.
- gahahaha 13y agoThat reads like a credo.
- alexeisadeski3 13y agoBoth systems contain massive speculator involvement. Only one system contains single overarching actor with ability to manipulate values at will. Pretty obvious which will be more stable.
- gahahaha 13y agoHistory shows pretty clearly that actively managed currencies with a central bank are far more stable than for example gold or bitcoin. I don't see how you can argue otherwise.
- alexeisadeski3 13y ago@gahahaha All historic gold currencies I know of were actively managed: Debasement, re-pegging, temporary abandonment to pay off debts via inflation - all were common practice under gold standard. None are (should be) possible with Bitcoin.