When BTC prices do not deflate in any way and only experiences inflation of 2-3% on an annual basis, call me.
While I'm on the topic, you realize that because the money supply can't be increased in any meaningful way once mining is no longer viable, prices will experience constant deflation? This alone makes BTC worthless as money.
I think there is a difference between an inflationary/deflationary currency and inflation/deflation of value.
The USD currency experiences inflation by adding dollars to circulation which causes the value of individual dollars to drop.
Bitcoin is deflationary. Bitcoin, as a currency, experiences deflation (bitcoins can only be lost, never added, over time after all bitcoins are 'found'), therefore the value of bitcoin value can only be increased as supply diminishes.
> While I'm on the topic, you realize that because the money supply can't be increased in any meaningful way once mining is no longer viable, prices will experience constant deflation?
Yes. I consider an annual deflation rate of 2-3% just as stable as an annual inflation rate of 2-3%.
> Yes. I consider an annual deflation rate of 2-3% just as stable as an annual inflation rate of 2-3%.
Please provide a single example of a viable currency that has deflated over a long period of time. Because bitcoin, by design, will force deflationary pricing forever.
Deflation is horrible. It is much much worse than inflation and any sustained deflation destroys the economy.
> Please provide a single example of a viable currency that has deflated over a long period of time.
Please provide a single example of a decentralized digital peer-to-peer payment network based on virtually fraud-immune proof of work. My point is that Bitcoin is fundamentally different than anything before it.
but the data show rates of change at <orders of magnitude> in variation. that simply is the problem. its not that its accelerateing or not, simply absolute level is not consistent with any concept of a (stable) store of value. Its a false argument to think that because the asset itself is inflating it's "storing value"; the variance of returns to the asset in increasing and the volatility as a risk factor is agnostic to direction. If it were not, it would be a fault in any event because its value as an investment would (essentially) preclude its use as a currency (because the forecasting/bookeeping overhead).
> While I'm on the topic, you realize that because the money supply can't be increased in any meaningful way once mining is no longer viable, prices will experience constant deflation? This alone makes BTC worthless as money.
On the contrary, I think its deflationary nature makes it worth a lot as money, and as long as a few other people agree, then we can use Bitcoin as a means of exchange.
The currency will be hoarded with only a tiny proportion of the stock being used for transactions. The price will increase rapidly so long as the transactional demand increases and the hoarders do not sell.
One day, of course, the currency will crash when hoarders finally try to cash out.
I'm aware of this, and I think it's the reason that BTC will never replace any of the national currencies, but I think it still has a tremendous value for smaller-scale things and has room to get a lot more popular and widespread.
While I'm on the topic, you realize that because the money supply can't be increased in any meaningful way once mining is no longer viable, prices will experience constant deflation? This alone makes BTC worthless as money.