Quote:
Originally Posted by bootsnixon
I disagree that it applies equally to bitcoin. Bitcoin, like real estate, is finite. The number of bitcoin will never inflate to debase it's value.
As one zooms out at a chart of bitcoin's value, it trends upwards as a finite asset should relative to an inflationary dollar.
Short term, price fluctuation is absolutely a problem with bitcoin. One should keep in mind that Bitcoin is a very young asset though. I don't know this but I would imagine that as money came into use, it's value fluctuated wildly relative to hard assets like wheat or chickens or swords or whatever. I think that one could also argue that bitcoin price fluctuation is starting to flatten. A one day price jump of 10% was noteworthy enough that Dino posted on this thread. Seven years ago, 10% jumps or drops were common place.
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Real estate and land has a use, and a very strong one at that. Bitcoin has very minor utility, matched by hundreds of other “coins” and the basic tech was already surpassed many years ago. 10% jumps and higher daily are still commonplace and there’s nothing noteworthy about it, except to someone holding it.
If any nation’s population adopts a digital currency en masse it won’t be Bitcoin. It will be a crypto with fast transactions, almost zero fees, widespread quick and cheap conversion to the local currency and here’s the important one. A crypto not majorly adopted by other nations.
In the event that this specific crypto does gain adoption as a currency, there won’t be any value in owning it. It will essentially become a stablecoin, not rise to inflated values.