Comment by resource_waste

Comment by resource_waste 15 hours ago

5 replies

If you can be objective enough to consider that not everyone likes keeping fiat currency, it was an interesting alternative.

Bitcoin generally appreciated, where fiat had inflation.

While the transaction costs/speed have eliminated this, there was a few years of my life that I both sent money to friends and used a Bitcoin debit card.

ddimitrov 14 hours ago

If you don't like fiat there is always gold. If you really care about value, independent from the monetary system (post-apocalyptic safety), buy tools, grain, generators and oil, though many of these things are perishable and storage comes at a cost.

One must ask whether the Bitcoin valuation has raised 1000% because the fiat has inflated as much, or is it mostly driven by speculation. For reference point, the buying power of fiat currency has not changed dramatically during the same period.

dr_dshiv 15 hours ago

It’s funny, because the inflation of crypto comes not from the increase in the supply of individual coins (that’s controlled mathematically) but by increasing the number of cryptocurrencies themselves.

  • sigwinch 13 hours ago

    I’m not so sure I buy that. Do nondecreasing counts of NFTs and meme coins account for the psychological source of inflation?

    • dr_dshiv 12 hours ago

      Can’t say for the memecoins and NFTs — but when it goes from just bitcoin to hundreds of different competitive legit coins, that does seem like inflation of money supply.

  • hollerith 12 hours ago

    That is a perverse use of "inflation" unless a holder of BTC or ETH were somehow forced to spend some of his BTC or ETH on every new cryptocurrency -- or it happened automatically, and for the holder to prevent it from happening was risky or tedious.