Re:The endless search for a crypto use case
by Aunche on Tuesday August 02, 2022 @01:28PM
(#32321719)
Bitcoin isn't immune to money printing at all. The value of Bitcoin comes from people using it as a speculatory vehicle rather than a medium of exchange of goods and services. If the price of a commodity like rice hyperinflates, this does nothing to the price of Bitcoin because nobody uses Bitcoin to buy rice. As a result, the price of Bitcoin would inflate at the same rate as the underlying fiat used to exchange Bitcoin.
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Re:The endless search for a crypto use case
by silentsea90 on Tuesday August 02, 2022 @02:39PM
(#32322653)
Price of Bitcoin inflating at the same rate as fiat printing = Bitcoin deflating while fiat inflates. That's good right?
Re:The endless search for a crypto use case
by Aunche on Tuesday August 02, 2022 @04:06PM
(#32323617)
My point is that there is no reason for the price of Bitcoin to inflate alongside actual commodities, which is validated by the fact that BTC fell while inflation rose. Gold similarly has a low correlation with inflation.
Re:The endless search for a crypto use case
by silentsea90 on Tuesday August 02, 2022 @09:42PM
(#32326668)
In the short term, absolutely no asset class is immune to fed monetary policy ie interest rates, QE/QT. In the long run, fiat has only lost value relative to all hard assets (gold, RE, Bitcoin etc) I'm not sure how what you're saying is an indictment of Bitcoin or gold.