Quote:
Originally Posted by Monkey Throttle
The reason I refer to Saylor is because he proselytizes Bitcoin extraordinarily well. He also puts his money where his mouth is... I suggest you listen to him. Just give him a chance and hear what he’s saying before you dismiss it.
Also, what we are experiencing now is widely considered not to be inflation but rather currency debasement. Inflation in classic sense is a change in supply and demand. But in reality, there hasn’t been a drastic change in supply and demand. What has been happening since the pandemic is over printing of FIAT... And this printing of money has no end in sight.
Because Bitcoin has a finite number of maximum mined coins, it works in the opposite manner. It is scarce... they get cut in half every 4 years... Bitcoin becomes more valuable as it becomes more scarce.
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Monkey Throttle, I do applaud your stance on Bitcoin and recognize that you were put in a difficult place of defending it since the first post. I also want to acknowledge that, you may be right about making $ in Bitcoin in the next few years - it certainly can go up exponentially.
But, I have formed my opinions about it precisely because I have listened to those ppl you mentioned above. I even listed to Michael Saylor redefining inflation multiple times in that video to fit his rhetoric. To me, the fact remains that this is a novel, but unnecessary tool for speculators to make a lot of money in a quick period. It is, in essence, the most high tech, highly advertised get-rich-quick scheme in today's world. It also comes with an aura of legitimacy because it uses blockchain as its secure store. But there are A LOT of red flags that just aren't addressed.
What we are experiencing right now is inflation. This occurred because of the pandemic where Gov't and The Fed took drastic measures to prevent a catastrophic depression that could have occurred due to the WORLD economy shutting down. It engineered a false sense of profit and safety in an effort to prevent further decline in human life amidst a virus that was causing millions to die. Now, did they over do it? Absolutely. It makes no sense that ppl are out of work and businesses are making less, selling less and yet cars/houses/etc were being bought $50-200k over asking price. The Fed did print too much money.
However, they did NOT print this money in an effort to devalue or debase the US currency. They did it to help ppl, and the inflation that occurred was an unfortunate side effect. This is now being curtailed with significantly less money being printed, The Fed selling off government backed securities to reduce money in circulation, and raising Fed Funds rate to curtail consumer consumption and borrowing of money. This has worked in the past year and they will continue to chip away at it until they get back to their target inflation numbers. Have patience, they are trying to do this gently to "engineer a soft landing" so that we don't fall on our faces too hard into recession.
As I mentioned, Bitcoin runs on the greater fool theory. In order for Bitcoin to continue to increase in its value you need new investors to constantly pay into its system. It produces NOTHING and does NOTHING on its own otherwise. So, yes, it can be a fabulous way to double your money as long as you have new 'fools' willing to pay whatever cost to keep its 'magic' going. However, it can just as easily go the other way - when Bitcoin is not accepted universally as currency and ppl stop investing into it - then what is it worth? Nothing. Just look at what happened to Sam Bankman-Fried.
Regardless, I genuinely hope
you do make $ in Bitcoin
just consider these alternative views for yourself too.