2/ When Bitcoin does become the world’s primary currency, its market cap will stabilize & fluctuate much less wildly. Any increase in the currency value at that point will be due more to the increase in general level of production / total number of available goods & services…
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The benefits however are not unconditional. It must work in tandem with other areas (production) to continue staying beneficial. Otherwise too much of it and it alone *can* (not always) devolve into free riding.
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Can’t compare a currency to GOOG stock because when you park your capital in GOOG you are parking it a productive asset. Equity != money.
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If you view the world economy as an enterprise, then you may see the analogy, in which money is equity of the global economy. That's why your example of profiting from GDP growth works. And that's why if you don't think GOOG owners are free-riders, you shouldn't think so for BTC.
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When you park your capital in BTC, someone else takes the other side of the trade and does something with it, contributing to the world economy. In this sense, after BTC is established as the world reserve currency, investing in BTC is investing in the world economy.
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Money is really not equity of the global economy though
Money is not equity, period. When you park money in a non-productive asset, it is OUT of the system completely.
The non-productive asset value can only rise if it piggies back on the success of productive assets.
End of conversation
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Above I am making the case that it is not only beneficial to btc in the early stage, it is also beneficial to society when it has already been established as a global reserve. Thus you cannot call holding free riding on society.
Thanks. Twitter will use this to make your timeline better. UndoUndo
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