Quote:
Originally Posted by chedder
How do compare over a 20 year period when one of the components hasn't been around for 20? And what does general value over 20 years even mean?
Yes, u.s. dollars will lose value, on average, over time due to inflation. As others have said, nobody holds u.s. dollars as an investment or inflation hedge. That's what real assets, commodities and equities are for.
That's what I can't get my head around. Bitcoin isn't a real asset, a commodity or an equity. Does it want to be a currency or an investment vehicle? Or neither?
How is there any way that the volatility and price spikes can be anything but speculation? (With dash of fomo)
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Compare it over 10 years. Compare it for the next 10 years. Doesn't really matter because at the end of the day the USD is constantly losing value because of the massive amounts being put into circulation.
As for saying nobody holds USD as an investment, that is correct, but there are just 15 companies sitting on hundreds of billions of dollars of cash as of March 1, 2021.
Over 10 years the value of that money, mostly held in USD is losing its value because the USD is losings its value.
Bitcoin (or something similar) could be held instead as an inflation hedge.
I believe in the next 10 years we will start seeing more companies doing this.
Not necessarily bitcoin, but perhaps something similar.
Same thing with the US Treasury who also has billions in cash on their balance sheet. Holding bitcoin or something similar would also act as a hedge against inflation.