muddybrazos said:
RD2WINAGNBEAR86 said:
Banks battered and Bitcoin booming!
Clown world.
The clowns are the ones who doubt bitcoin. It has a limited supply and every time they run the money printer BTC will increase in value.
But that is exactly what makes it a non-currency.
One of the main things that makes currency...a currency...is the ability to increase the money supply.
Something that has to be done if the population or the economy grow (increase the dollars in circulation).
[But the most important attribute of a store of value is that it's valuable. Gold is valuable because it has many industrial and decorative uses. Its price can fluctuate because of speculation on financial markets, but it can never fall to zero. There will always be someone willing to accept gold because it's a useful commodity.
Similarly, US government bonds are ultimately valuable because they entitle the owner to a relatively secure flow of interest payments. Dollars and euros are valuable because they are widely accepted as a means of payment, and will continue to be so in the foreseeable future.
In contrast, the future acceptability of the Venezuelan bolivar is in doubt, so people are desperately trying to exchange it to better stores of value.
Is Bitcoin valuable? It has no industrial or decorative uses, and it doesn't entitle the holder to receive interest. It was intended to be valuable as a currency that is accepted the world over, but that doesn't seem to be happening. The only major value that Bitcoin has now is its exchange value.]