There will only ever be 21 million Bitcoin so it is deflationary like land, gold, art and stocks where the float decreases because of buybacks funded by free cash flow not loans. The supply of paper money is endless and inflationary.
Bitcoin hits $20000 within three years-Ronnie Moas predicts
- Thread starter Elena_Rodriguez
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There will only ever be 21 million Bitcoin so it is deflationary like land, gold, art and stocks where the float decreases because of buybacks funded by free cash flow not loans. The supply of paper money is endless and inflationary.
Still, no intrinsic value... though your point about printed fiat is valid.
Seems you (and others) want to argue in favor of bitcoin based upon the "problems of other things".... when in reality bitcoin has a serious flaw itself... no intrinsic value, not backed by anything at all other than the willingness (foolheartedness?) of others to pay higher prices for the "notion".
True that. Paper money is/was just a "convenience" to barter.... until politicians and governments got involved to exploit its flaws. Still, paper money is backed by something of intrinsic value, however fleeting... cryptos, not.
I'm not trying to give you a hard time. But remember the great tulip bulb mania and compare to cryptos. As always, "playing it by ear" for how things work out.
The intrinsic value of a Bitcoin is the ability to create a transaction on the Bitcoin ledger that cannot be rolled back. You do this by paying a fee in Bitcoin to incite miners to include your transaction in the next block. The following blocks ensure this transaction is irreversible. It is possible to spawn an infinite number of coins which would bring the theorical cost of a transaction to 0, but that chain would have no hashpower which in turn makes it unsecure.
How much that is worth is how much Bitcoin is worth.
How much that is worth is how much Bitcoin is worth.
Tulips were a 6000% move Bitcoin has moved millions of % if you use the low of 0.001c.
Still, no intrinsic value. All based on hope. Works until it doesn't.... as did tulips. All based upon the "greater fool" concept. That is, "I pay a foolishly high price, betting some greater fool will pay an even higher price". If that turns out to be wrong, the holder learns his "investment" is worth nothing.
(That "game" can actually be played if liquidity is high and transactions become instantaneous.... gap reactions to news notwithstanding.)
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You're conveniently forgetting that 'paper' currencies pay interest if held in bank accounts or short term money market instruments which are as good as cash. Granted, the last few years may have not paid much interest. But if you go back to 1971, holding US dollars in say 3 month t bills rolling the interest payments back into t bills has approximately broken even with inflation. So it's very misleading to say that the US dollar has lost 80%+ of its purchasing power...I suppose it has if you kept it under your bed.
Bitcoin etc, for me at least , are just speculative tokens. It's like trading ES or CL, you don't care about the intrinsic value if there is such a thing.
This should be mandatory reading before one claim adulthood - meaning before they can drive, vote, purchase alcohol, etc.. :
Money Mischief: Episodes in Monetary History
Anything, even seashells on the beach, can be a store of value, can be traded as currency, etc..
Money Mischief: Episodes in Monetary History
Anything, even seashells on the beach, can be a store of value, can be traded as currency, etc..
Complete HOGWASH!
If and when players decide "the bitcoin notion is BS" (just like they did for tulips), all of them are worth nothing. It's not like you've bought land, gold, wheat, oil, even paper fiat "guaranteed by some government", however fleeting, etc. All of those have "utility" and therefore "intrinsic value". Bitcoin has none of that. Bitcoin has ZERO UTILITY... except for the willingness of players to pay.
It's highly likely the winners in bitcoin are those who "got in early and got out before people woke up and the shit hit the fan". (That's the premise of any Ponzi scheme, you know). Are you going to be one of those?
I understand... you're probably "young, dumb, and full of cum"... righteously convinced about every concept that enters your inexperienced brain.... just like we all were when we were young. Doesn't mean you're right in the long run.
No need to listen to me. As the late, great Ed Hart used to say, "All will be revealed in the fullness of time".
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