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0 pointsashwagary4y ago0 comments

BTC's monetary policy makes it an inflation hedge regardless of what humans are doing with it, the cycles just take 4 years to play out. The evidence is literally in the code.

No need to complicate things, just focus on 2 key questions...

1. Is the BTC supply inflation rate lower than the US dollar’s (and other fiat currencies)?

2. Will it be lower for the forseeable future?

That will give you the simple answer you are looking for...both answers are 'yes' btw.

0 comments

zepto4y ago

Price and supply are independent. Bitcoin isn’t a currency. It’s a speculative asset. It doesn’t matter whether it is inflationary within its own realm, so these factors tell us nothing at all.

What matters is whether the speculative asset acts like an inflation hedge.

Spoiler: it does not. It acts like a speculative bubble.

ashwagaryOP4y ago

Wrong. Monetary policy is the key here. Price discovery, volatility, reflexivity, add noise to the procession/price-chart but over any 4 year period the fundamentals matter. One would have to be insanse to claim btc doesnt act like an inflation hedge, it literally averages approx 200% return every year, over any 4 year period.

Gold is called an inflation hedge by many confused people, compare its performance to btc over the last 10 years and tell me which performs better in the face of fiat inflation.

>Price and supply are independent

Wrong. Price is literally discovered by supply vs demand.

Say 5 billionaires want to buy coin-x and the max circulating supply is 1 coin... When the bidding war starts, are price and supply independent?

I dont think you understand the topic we are discussing here, so I will move on.

zepto4y ago

Your argument seems to be that Bitcoin’s price has gone up a lot over the last decade, therefore it must be a hedge.

What you are not seeing is that over that time, every one of the promises made about Bitcoin’s utility has been systematically disproven, which is why it has now stalled.

Past performance is no predictor of future gains, as they say.

grey-area4y ago

Here’s another question to focus on:

If it is mostly used to speculate, not transact, does the supply matter at all to the price?

j / k navigate · click thread line to collapse

0 pointsashwagary4y ago0 comments

BTC's monetary policy makes it an inflation hedge regardless of what humans are doing with it, the cycles just take 4 years to play out. The evidence is literally in the code.

No need to complicate things, just focus on 2 key questions...

1. Is the BTC supply inflation rate lower than the US dollar’s (and other fiat currencies)?

2. Will it be lower for the forseeable future?

That will give you the simple answer you are looking for...both answers are 'yes' btw.

0 comments

zepto4y ago

Price and supply are independent. Bitcoin isn’t a currency. It’s a speculative asset. It doesn’t matter whether it is inflationary within its own realm, so these factors tell us nothing at all.

What matters is whether the speculative asset acts like an inflation hedge.

Spoiler: it does not. It acts like a speculative bubble.

ashwagaryOP4y ago

Gold is called an inflation hedge by many confused people, compare its performance to btc over the last 10 years and tell me which performs better in the face of fiat inflation.

>Price and supply are independent

Wrong. Price is literally discovered by supply vs demand.

Say 5 billionaires want to buy coin-x and the max circulating supply is 1 coin... When the bidding war starts, are price and supply independent?

I dont think you understand the topic we are discussing here, so I will move on.

zepto4y ago

Your argument seems to be that Bitcoin’s price has gone up a lot over the last decade, therefore it must be a hedge.

What you are not seeing is that over that time, every one of the promises made about Bitcoin’s utility has been systematically disproven, which is why it has now stalled.

Past performance is no predictor of future gains, as they say.

grey-area4y ago

Here’s another question to focus on:

If it is mostly used to speculate, not transact, does the supply matter at all to the price?

j / k navigate · click thread line to collapse