Quote:
Originally Posted by Enoch Root
Great. Tell that to a sovereign that needs $500B.
No worries, we'll just sub-divide it and make it worth more!
Yeah, that's exactly how an inflation hedge works.
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That’s exactly how gold works. An any point in time there is a relatively fixed supply as changes to production capacity take time to produce to market.
If there is 10 trillion in gold and no one is selling it the price rises until it meets demand and people by smaller amounts. Now over time the price of gold comes back down as more gold is mined.
The argument against Bitcoin as an inflation hedge is that other coins will be able to be continually created which means an infinite supply of virtual currency and therefore it is inflationary.
It’s not that there is too little.