Bitcoin is no hedge against inflation - i unadopted it. - page 5.

newyorker91

newbie

Activity: 22

Merit: 0

Quote from: venlo on September 26, 2014, 07:15:49 AM

So, can i ask. Why was it again we are having that inflation? What sense does it make?

As any currency it has that inflation. You need to wait a few year when it will be more stable.

Quote from: venlo on September 26, 2014, 07:15:49 AM

Why do we need it?
Is Bitcoin maybe just a plot to make big miners rich?

To make transactions/payments smooth and quick without having a middleman, there are many reasons why. And, no, it's not about making big miners rich.

franky1

legendary

Activity: 4270

Merit: 4534

my thoughts are that your research is lacking the big picture. and you need to do more research.

5 years ago bread was $2 now its $2.50
pick ANY item in the world you want to buy and then look at the price now.
beef, oil, car fuel, pepsi, beer.

now for another example, using bitcoin this time:
5 years ago 2 pizza cost 10k bitcoin. now 2 pizza cost 0.1bitcoin. meaning to can get 200,000 pizza's for the same 10k bitcoins

learn about what inflation really is, and dont worry about the small day to day price changes, much like economists dont worry about day to day special offers of 50c off bread, or 'happy hour' in bars. or buy one get one free on pepsi.. the big picture long term is that bitcoin is DEFLATIONARY and legal tender is INFLATIONARY.

as for your unadoption.
lets say you only had 1BTC and now have cashed out
i dare you to hold your bank notes for just 2 years. and on that piece of paper write out a shopping list of things that you can buy with it. ($400 shopping list).

and in 2 years lets see how many of those items on your shopping list you can buy. and compare it to purchases using bitcoin.

goodluck with your FIAT savings Grin

venlo

member

Activity: 187

Merit: 10

People like to call it 'hedge against fiat inflation' others said 'it's digital gold'

None of it is true. In fact it is misleading. Bitcoin inflates twice as heavy as fiatmoney until 2016 - after that it'll continue to inflate at the same rate as fiatmoney. So how can that be a hedge against inflation or compared to gold? It's a lie.

Bitcoin is inflating heavily with around 10% per year. This is causing negative feedbackloops like we see now and causes high volatility.
The high inflation in bitcoin also impacts adoption in a negative way. People will probably not adopt something that goes down 90% of the time to make a crazy rise (maybe) at one point for a few weeks and then starts declining again for ages.
Sane people will not adopt that.

So, can i ask. Why was it again we are having that inflation? What sense does it make? Why do we need it?
Is Bitcoin maybe just a plot to make big miners rich?

I myself unadopted bitcoin again for that reason.
I refuse to invest in inflationary coins.

your thoughts?

Topic: Bitcoin is no hedge against inflation - i unadopted it. - page 5. (Read 5786 times)