Bitcoin Delight

[biglentil]

So how did the rise in bitcoin reduce inflation like Crypto said it would?

We are not going to take economic advice and monetary policy from people who still believe the earth is flat! LOL

Chuck you don't have a sniff on either topic. You have at best a grade 3 understanding.

[furrowtickler]

Chuck you don't have a sniff on either topic. You have at best a grade 3 understanding.

Much like 99% ag topics , zero sniff

but social justice issues, the chucks have er nailed lol

[chuckChuck]

Bitcoin is speculative and volatile
The fundamental issue for bitcoin is what gives it value, Prasad says, and its only
value is scarcity. In contrast to the dollar, which the Fed can create in infinite
amounts, bitcoin has its 21 million cap.
The idea is that something scarce will preserve its value
better if the money supply increases, Prasad says. “But
there is no intrinsic value for bitcoin, because it’s a purely
speculative financial asset. There’s no valuation model,”
he says.
True, he says, bitcoin is scarcer than gold—but bitcoin
isn’t being used for much outside of speculative
transactions, while “gold has some intrinsic value for
industrial and jewelry usage.”
There are other issues that limit bitcoin’s value as a hedge, Prasad says. For one
thing, the technology isn’t as reliable as it looks. “It’s supposedly a medium of
exchange without a traditional intermediary like a bank,” he says. But “it’s
volatile and inefficient in transactions. The blockchain system can’t handle a lot
of bitcoin transactions at once.”
Swings in price are a big issue. “Bitcoin provides a pretty good return
sometimes, but there’s the large volatility,” he says. “Given that it is a
speculative asset, we have seen it behave like other risky assets. It can be much
more volatile than stocks.”
Measured daily over the past three
years, bitcoin put up a standard
deviation of 3.4 from its average
price—a measure of volatility, with
higher being more volatile—while
stocks were at 1.1 and gold just 0.9,
Prasad says.
Consider bitcoin’s price swings since
2020. On March 8 of that year, bitcoin
was trading at $5,392. A little over a
year later, on April 4, 2021, it had
soared to $60,205. Within three
months, the price had dropped by
almost half, then more than doubled
about four months later. After more
swings in between, on Oct. 3 of this
year, the price stood at $27,468

[chuckChuck]

PP out of his depth!

[AlbertaFarmer5]

A poster here was claiming that cryptocurrency hadn't protected Canadians from inflation.
So I checked.
Since Pollievre's statement in March of 22, a Canadian invested in Canadian dollars has experienced 12.6% cumulative inflation vs a basket of goods.
A Canadian invested in bitcoin has experienced 266% deflation vs the CAD.
Or only 236% deflation vs the same basket of goods.

[kANOLA]

Very well explained A5 , but CC might need more help.

[sumdumguy]

Polly for King!

[biglentil]

Fartcoin far out performing the Canadian loonie.

[chuckChuck]

So how much did you guys invest in bitcoin then after PP told you what a great hedge against inflation it was?

I cant wait to hear how confident you were to put lots of your savings in and what the results were?

[AllisWD45]

You first where do you invest?

[chuckChuck]

As I thought most of you are all hat and no cattle when it comes to bitcoin!

[cropgrower]

do you actually think we would tell you what we do with our money cc ? you will be a long time waiting thats for sure