Federal Reserve to increase interest rates by 50 basis points

Re:Federal Reserve to increase interest rates by 50 basis po... by AnimalMuppet on Wednesday December 14, 2022 @05:59PM (#33992014)

The value of a dollar, as measured in dollars, has not changed. The buying power has. This is exactly the same as Bitcoin, which is why your "1 Bitcoin is still worth 1 Bitcoin" line is meaningless. We don't care about the value of anything as measured by itself. We only care about the value as measured by other things - that is, the purchasing power. Well, the purchasing power of Bitcoin tanked over the last year.

(We don't care about the absolute number of the thing, either, so your "supply of dollars is increasing" argument is also irrelevant. Though I will give you that the increase in the supply of dollars faster than the supply of things for dollars to buy causes inflation.)

[ Parent | on HN ]

Re:Federal Reserve to increase interest rates by 50 basis po... by rglover on Wednesday December 14, 2022 @06:14PM (#33992209)

> We only care about the value as measured by other things - that is, the purchasing power.

You just contradicted yourself, then.

> Well, the purchasing power of Bitcoin tanked over the last year.

It didn't. The purchasing power relative to other currencies did. If your goal is to just use Bitcoin as a way to make more dollars, then sure, you lost something. If your goal (like my own) is to store your wealth in a way that can't be manipulated or confiscated, then you didn't lose any purchasing power.

It's an abstract argument and I understand exactly the point you're making, but ultimately, Bitcoin's inherent value is unchanged (1 Bitcoin = 100,000,000 Satoshi).

[ Parent | on HN ]