Quote:
Originally Posted by GGG
Why does a finite supply limit it’s ability to become an inflation hedge. Bitcoin is inherently deflationary.
I agree that if other crypto’s provide an easy substitute for Bitcoin then bitcoins ultimate value is pegged to the total supply of virtual currency and not bitcoins. This is what will put a cap on bitcoins value and it’s unclear what mechanism would set price. Gold is valuable because it is gold (yes there are industrial uses) but it’s value is really driven by the cultural value placed on it. Are we creating some weird cultural value of Bitcoin?
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I didn't say that it can't be an inflation hedge - lots of things can be an inflation hedge, including your house.
The comment I was referring to suggested it could
replace gold as
the inflation hedge. It can't - there isn't enough of it to be universally held.