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/biz/ - Business & Finance

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15275267 No.15275267 [Reply] [Original]

Why do we think of the price of bitcoin going up in USD terms? Why don't think we think of the value of USD losing parity against bitcoin?

Is bitcoin not the standard? If it is, then we should be propagandizing the opposite of what it currently is. If bitcoin goes up, then in actuality terms, it should be shown as the USD losing x% value.

>> No.15275285

red and basedpilled

>> No.15275342

bump u shitheads

>> No.15275376

bitcoin has not seen the widespread adoption yet for that to make sense, but it will

>> No.15275387

congrats anon, you've just realized that crypto's are only high risk speculative assets and not a currency

>> No.15275398

>>15275387
is the USD not a speculative asset itself thats goes up/down in value based on the actions of the FED?

>> No.15275402
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15275402

>>15275387
>>15275398
no brainlets in this thread please.

>> No.15275450

>>15275398
Every asset has some degree of risk associated with it. But the US govt has never defaulted on its debt, unlike, say, Argentina. Plus inflation has been historically low except for some years in the early 80s. Comparing the dollar to Bitcoin Is like comparing a real estate property with a stock. Why do you think the wealthiest are now stocking themselves in cash and property?

>> No.15275509

>>15275450
i dont see it this way though. bitcoin is much more easily interchangeable than say a stock or a real estate, or dare i say, even the dollar. the reason for building a large cash position right now is simply because there's not even liquid USD or buyers who will prop the price up when big money starts cashing out. you're either out early and watching the idiots play musical chairs with each other before an impeding rush to get out the door, or youre let bagholding worthless paper stock.

look at what corps did in this run up, theyre borrowed cash cheap as fuck, they issued billions of bonds, and what did they do with it? they used the cash from these tools to buy back stock... why? so they can increase the value of their own stock and cash out at the top while the corp will go into liquidation because it owns too much debt and not even assets to back its valuation. i mean the entire fucking scheme is similar to the MBS we saw in 2008. its just another loophole theyre exploitiong and going to fuck the little guy holding these shitbonds/stocks.

>> No.15275596

>>15275509
stock buyback propulsed by the low interest rate (created by the FED) its absolutely true. It's like a Ponzi scheme, yes.

But what about crypto? See this board. See OP's thread. Nobody wants the crypto, they all want, in a larger or not future, the US dollar. That is to say, everybody is here for trading, either with short term position or not. Given that practically nothing real besides blockchain supports BTC, BTC is the worst ponzi schemes of all. Think of it. Everybody gets into it just expecting the price goes higher and higher. So you can only make money if you get more and more investors, just like a Ponzi.

>> No.15275711

The 3 properties of sound money are they out should be a store of value, a medium of exchange, and a unit of account.

Your argument revolves mostly around using Bitcoin as the unit of account. Right now, this is not yet possible, as goods and services in the real world are still priced in fiat, and Bitcoin adoption and market cap is still so low that the purchasing power of Bitcoin is very volatile.

Before it can become a global unit of account, it must be widely adopted globally as a medium of exchange, and it must also first establish itself as a store of value.

I think it is currently proving itself as a store of value right now. Once it reaches a market cap like gold's, i.e. $8T+, the price will be much more stable, like gold, making it an established SoV.

Right now, it can work as a medium of exchange across anywhere in the world, BUT for it to be adopted as a medium of exchange at a global scale, scalability still need to be solved at the 2nd layer, and right now Lightning Network is not yet mature enough.

So while Bitcoin is still absorbing all wealth in the world, which it is eventually bound to do, it has to be priced in the current units of account still in use. i.e. USD, EUR, etc

Although there is one place where Bitcoin is adopted so much it is now the base unit of account: crypto exchanges. Everything is paired to BTC do everything is priced in BTC. This is the goal to happen on a global scale, but not yet.