Temporary pause of Bitcoin withdrawals on Binance

Re:Temporary pause of Bitcoin withdrawals on Binance by namaria on Monday June 13, 2022 @05:05PM (#31731759)

Prices don't rise 'due to inflation'. Inflation is just another name for price rise. This 'transmutability' you speak of is called currency. Bitcoin has some but very little compared to cash. Also the so-called 'deflacionary' nature of bitcoin, supposedly caused by the supply cap assumes a constant or growing demand for it, which is far from assured. Bitcoin only needs to collapse once to become worthless forever, there will be no cold re-start. Whereas precious metals don't need one. That, IMHO, is the crucial difference that advocates seem to forget.

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Re:Temporary pause of Bitcoin withdrawals on Binance by ericmay on Monday June 13, 2022 @05:37PM (#31732100)

Prices rise for more than one reason. For example marble is more expensive because it’s more difficult to find and mine than it was in the past (just a contrived example). But prices also rise due to increases in money supply.

I agree that Bitcoin is a poor currency compared to fiat currency, but conversely a dollar is a very poor store of wealth while Bitcoin is looking like it may be a good store of wealth. The confusion comes when you (not you specifically) don’t recognize that you can assess the utility and value of these “things” across various traits. Gold is a decent store of wealth, but a very bad currency. Stocks are great at producing and storing value and are highly liquid but awful currencies.

I’m not a Bitcoin advocate. I’m a neutral investor. You are correct in my view that if Bitcoin collapses it may become worthless forever. We have examples of this happening with fiat currency as well, though, so it’s not a unique trait of Bitcoin.

Diversification and asset accumulation are what I focus on. Bitcoin could turn out to be totally worthless. So could Amazon stock. So could GBP.

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Re:Temporary pause of Bitcoin withdrawals on Binance by namaria on Monday June 13, 2022 @06:04PM (#31732368)

I agree with most of what you said, except that Bitcoin looks like a good store of wealth. It has a very short track record, and has shown huge volatility. How does that indicate a good store of wealth?

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Re:Temporary pause of Bitcoin withdrawals on Binance by ericmay on Monday June 13, 2022 @08:26PM (#31733381)

Well I would just mention it looks like it to me but that’s an opinion, not a fact. I don’t think it’s dissimilar to any other financial advice though. Like some people think Amazon stock is a good investment. I personally don’t. That’s all :)

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