Re:Bitcoin Block 840000
by npoc on Friday April 26, 2024 @07:15AM
(#40167964)
> Volatility is minimal because the central bank actively tries to minimize it. Bitcoin or gold don't have this stabilizing mechanism, so they will always have worse volatility (assuming a responsible central bank).
> In a sufficiently long time horizon, stocks are guaranteed to outperform Bitcoin given some weak assumptions.
In a sufficiently long time horizon, stocks will be priced in bitcoin. Rather than an index fund giving you 7% but with a 7-10% devaluation of your fiat (i.e. net return of -3% to 0%), it will return you 7% with no devaluation of the underlying money (net 7%).
Bitcoin is first proving itself as a store-of-value (fundamental for any money), then once it's growth has reached the point that it is stable enough to be used as a unit of account and medium of exchange, it will be, through demand from the people. Any volatility will be measured against bitcoin, not the other way round.
You've been indoctrinated well. Here's an explanation I made on what the central bank is really doing: https://news.ycombinator.com/item?id=40114857
> In a sufficiently long time horizon, stocks are guaranteed to outperform Bitcoin given some weak assumptions.
In a sufficiently long time horizon, stocks will be priced in bitcoin. Rather than an index fund giving you 7% but with a 7-10% devaluation of your fiat (i.e. net return of -3% to 0%), it will return you 7% with no devaluation of the underlying money (net 7%).
Bitcoin is first proving itself as a store-of-value (fundamental for any money), then once it's growth has reached the point that it is stable enough to be used as a unit of account and medium of exchange, it will be, through demand from the people. Any volatility will be measured against bitcoin, not the other way round.