News for hackers. Stuff that matters.

A comment on Bitcoin World’s 30th Largest Currency, Market Cap Closes on Mastercard. Parent comment

Re:Bitcoin World’s 30th Largest Currency, Market Cap Closes ... by 55555 on Monday November 27, 2017 @05:20AM (#15786258)
Quantitative Easing injects new money into the economy, devaluing money. But my bitcoin is only worth $10,000 USD if that's the amount you agree to pay me for it. And you will pay me using existing money. So there is no new money being injected and so it would seem there is no devaluation of old money.

But it feels like maybe you're right. I think existing money is essentially being devalued every time someone decides to spend their USD on bitcoin, demonstrating that a new thing that came out of (more-or-less) thin air now has value, and thus those who own it can 'claim' dollars, and thus there are less dollars for all the people who don't yet own bitcoin. Which means they are getting poorer.

My head hurts. Can someone smarter than I figure this out?

[ Parent | on HN ]
Re:Bitcoin World’s 30th Largest Currency, Market Cap Closes ... by mattrices on Monday November 27, 2017 @05:46AM (#15786380)
This is not QE. BTC is treated like a physical asset with a fixed quantity, if x reserves of y mineral were found that would not be QE. Discoveries that increase net global value are completely different from altering the amount of a circulating currency.
[ Parent | on HN ]
Re:Bitcoin World’s 30th Largest Currency, Market Cap Closes ... by cryptodogemoon on Monday November 27, 2017 @05:31AM (#15786312)
Like any other product or service, when you exchange your money for BTC all that has happened is someone decided to sell you BTC and you gave them money.

BTCs exchange rate is dependent on someone else offering money. If there's a market panic, the price quickly drops due to a race to beat other orders.

[ Parent | on HN ]
Re:Bitcoin World’s 30th Largest Currency, Market Cap Closes ... by adrianN on Monday November 27, 2017 @05:32AM (#15786315)
Your newly printed stack of $100 bills is also only worth $10000 if someone is willing to exchange it for goods and services worth that much. I don't see how newly mined $10000 worth of Bitcoin is injecting any less artificially created value into the economy.
[ Parent | on HN ]