Fixed supply doesn't matter (change my mind) - page 4.

stompix

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Quote from: MeGold666 on May 11, 2024, 04:55:30 AM

If fixed supply can be infinitely inflated (when it comes to price) and thus creating a bubble that can burst, it is not being different from supply that is not fixed.

Example, current Bitcoin price inflated by Tether printer with no real backing.

You're mistaken about two different things
- bitcoin is limited so it can't be printed like USDT, this doesn't mean that the price can't be inflated, it means its value can't be diluted because of printing
- any kind of goods and commodity gets a price inflation if there is money poured into it, gold can become inflated, real estate can become so, everything can, the most important thing is that you don't care about it since it grows in value while the fiat counterpart goes down.

Quote from: MeGold666 on May 11, 2024, 05:42:57 AM

So the fixed supply is not really defending us against inflation/deflation as it is all controlled by the printers.
The more money from this printers (especially non-government like Tether) flows into Bitcoin, the bigger the bubble.

How the fuck is an asset that grows in value while fiat loses value due to inflation not protecting you?

Husires

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I think that in this case you should be worried about USDT and not Bitcoin. Many stablecoins have collapsed and yet Bitcoin is still leading. If something bad happens to USDT, the decline will be temporary and the price will rise again.
I can say that the current price of Bitcoin is inflated by the dollar printer without real support, something that has existed since the first day of the creation of Bitcoin.

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Quote from: MeGold666 on May 11, 2024, 04:55:30 AM

If fixed supply can be infinitely inflated (when it comes to price) and thus creating a bubble that can burst, it is not being different from supply that is not fixed.

Example, current Bitcoin price inflated by Tether printer with no real backing.

Fixed supply of BTC doesn't matter, when the price can be infinitely inflated by Tether printer.

You are the only one referring for a price growth as inflation while it’s just a sign that the demand is increasing for Bitcoin. It’s just a simple rule of supply and demand, Bitcoin has a limited supply while the demand is increasing due to its popularity so it’s normal effect is to pump the price because no one wants to sell at low price.

Besides, Despite a shadiness surrounded on USDT. It has an audit for their reserves which backed their value. Tether is not the only stablecoin right now on crypto.

MeGold666

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Unfortunately the price is heavily inflated by Tether with no backing, you can do your own research on that subject.

All other pairs will be naturally affected by it.

This may interest you:
https://youtu.be/eafzIW52Rgc?t=1049

Doan9269

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Quote from: MeGold666 on May 11, 2024, 05:07:06 AM

Quote from: Bulltard on May 11, 2024, 05:05:54 AM

BTC supply isn't inflated, wtf are u talkin' about?
reread yourself, you seem confused on the difference between price and supply.

Yes, the supply as a number is not inflated, the price is inflated.

Maybe government is letting Tether printer to run for so long so the bubble grows bigger and when they decide to shut it down, people will lose trust in anything that's not being issued by gov and their CBDC will flourish.
But that's off-topic and a conspiracy theory.

Bitcoin is never inflated in price, its value instead increases as we have more demands on it, the supply as well is reduced along the reward for mining bitcoin, you should not use the inflation theory applicable to fiat in comparing to that of bitcoin in a decentralized network, what we have is a fixed supply and the increase in value with time, if you can also remember why bitcoin is a volatile currency.

shield132

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What do you mean by saying that Tether can infinitely inflate Bitcoin's price? We trade different pairs of Bitcoin, we can trade Bitcoin to USD, Bitcoin to USDT, Bitcoin to USDC, Bitcoin to DAI, Bitcoin to TUSD, Bitcoin to FDUSD, Bitcoin to Euro and etc... How can tether printing money affect Bitcoin's price? It will only affect Bitcoin to USDT pair, not others.

Quote from: mindrust on May 11, 2024, 05:40:05 AM

I get your point but the FED and the government should worry more about USDT. I used to think and worry about that a lot too but then I stopped caring for this exact reason. If the owner of the real FIAT doesn't care if somebody somewhere printing fake FIAT, why should I care?

What do you think about Paxos Stablecoins? PYUSD and USDP? BUSD was backed by Paxos if I remember correctly and users successfully managed to claim their dollars one in one.

MeGold666

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So the fixed supply is not really defending us against inflation/deflation as it is all controlled by the printers.
The more money from this printers (especially non-government like Tether) flows into Bitcoin, the bigger the bubble.

mindrust

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Quote from: MeGold666 on May 11, 2024, 05:33:56 AM

Quote from: mindrust on May 11, 2024, 05:29:15 AM

FIAT has no real backing either. The only difference between tether and usd is the issuer. USDT is issued by bitfinex, USDT is issued by the FED. Both are backed by nothing. Till now, the authorities didn't care if USDT was backed by USD or not so why should we care if the real owner and the issuer of the FIAT (the FED) doesn't?

Fixed supply of BTC kind of matters but it is not always a good thing. Let's say it has its advantages. Would you rather prefer to invest in a non-fixed supply coin like ethereum? That's way more messed up.

The problem I see here is we are at the mercy of this printer owners / central issuers, if Bitcoin had more organic growth backed by usage it would be much more resilient to price control / bubble bursts.

It would still be backed by government printer, but it's less probable that their printer will be shutdown.

I get your point but the FED and the government should worry more about USDT. I used to think and worry about that a lot too but then I stopped caring for this exact reason. If the owner of the real FIAT doesn't care if somebody somewhere printing fake FIAT, why should I care?

Another possible reason for that is, they are willingly letting bitfinex do that.

Either way it doesn't matter till it matters.

They already printed trillions of dollars out of thin air, what's another 100 billion? Nothing.

MeGold666

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Quote from: mindrust on May 11, 2024, 05:29:15 AM

FIAT has no real backing either. The only difference between tether and usd is the issuer. USDT is issued by bitfinex, USDT is issued by the FED. Both are backed by nothing. Till now, the authorities didn't care if USDT was backed by USD or not so why should we care if the real owner and the issuer of the FIAT (the FED) doesn't?

Fixed supply of BTC kind of matters but it is not always a good thing. Let's say it has its advantages. Would you rather prefer to invest in a non-fixed supply coin like ethereum? That's way more messed up.

The problem I see here is we are at the mercy of this printer owners / central issuers, if Bitcoin had more organic growth backed by usage it would be much more resilient to price control / bubble bursts.

It would still be backed by government printer, but it's less probable that their printer (and all of the money) will be shutdown.

mindrust

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Quote from: MeGold666 on May 11, 2024, 04:55:30 AM

If fixed supply can be infinitely inflated (when it comes to price) and thus creating a bubble that can burst, it is not being different from supply that is not fixed.

Example, current Bitcoin price inflated by Tether printer with no real backing.

[img]https://i.imgflip.com/8ppmmm.jpg[/img
Fixed supply of BTC doesn't matter, when the price can be infinitely inflated by Tether printer.

FIAT has no real backing either. The only difference between tether and usd is the issuer. USDT is issued by bitfinex, USDT is issued by the FED. Both are backed by nothing. Till now, the authorities didn't care if USDT was backed by USD or not so why should we care if the real owner and the issuer of the FIAT (the FED) doesn't?

Fixed supply of BTC kind of matters but it is not always a good thing. Let's say it has its advantages. Would you rather prefer to invest in a non-fixed supply coin like ethereum? That's way more messed up.

MeGold666

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Quote from: Bulltard on May 11, 2024, 05:05:54 AM

BTC supply isn't inflated, wtf are u talkin' about?
reread yourself, you seem confused on the difference between price and supply.

Yes, the supply as a number is not inflated, the price is inflated.

Maybe government is letting Tether printer to run for so long so the bubble grows bigger and when they decide to shut it down, people will lose trust in anything that's not being issued by gov and their CBDC will flourish.
But that's off-topic and a conspiracy theory.

Bulltard

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Quote from: MeGold666 on May 11, 2024, 04:55:30 AM

If fixed supply can be infinitely inflated and thus creating a bubble that can burst, it is not being different from supply that is not fixed.

Example, current Bitcoin price inflated by Tether printer with no real backing.

https://i.imgflip.com/8pplvd.jpg

BTC supply isn't inflated, wtf are u talkin' about?
reread yourself, you seem confused on the difference between price and supply.

MeGold666

jr. member

Activity: 28

Merit: 37

If fixed supply can be infinitely inflated (when it comes to price) and thus creating a bubble that can burst, it is not being different from supply that is not fixed.

Example, current Bitcoin price inflated by Tether printer with no real backing.

https://i.imgflip.com/8ppmmm.jpg
Fixed supply of BTC doesn't matter, when the price can be infinitely inflated by Tether printer.

Topic: Fixed supply doesn't matter (change my mind) - page 4. (Read 546 times)