An In Depth Look At The Economics Of Bitcoin \ stacker news ~bitcoin

I posted this article written in 2018 by the CME because of the current ETF circus. The CME operates commodity options exchanges. This article attempts to analyze bitcoin as a commodity. Caveat- much of this article will piss you off, as it did me. Still, you can learn a few things about economic principles, and get a chance to know how traditional finance will analyze bitcoin. I recently decided that it will help me learn more about bitcoin by reading perspectives way outside my echo chamber. This is a good example.

I couldn't figure out how to cut and paste from this source so I'll sum up a few points:

Recently even the mainstream media have been noting bitcoin's inelastic supply, which is unique among publicly traded commodities. This article posits that this trait will always cause volatility.

The authors believe that bitcoin can never serve as currency since inflation is a necessary trait of any good currency(!) You should check out this (unconvincing) argument.

Bitcoin can never be a good store of value because of its volatilty.

The only purpose of buying bitcoin is to sell it at a higher price later. (This sounds absurd in 2024, but I have heard this opinion in the past few days on mainstream media)

204 sats \ 1 reply \ @elvismercury 12 Jan

I recently decided that it will help me learn more about bitcoin by reading perspectives way outside my echo chamber. This is a good example.

Beautiful and admirable. Would love it if you continued to call it out when you were posting based on things you encountered on this quest.

0 sats \ 0 replies \ @siggy47 OP 12 Jan

Thanks, and will do.

102 sats \ 0 replies \ @riberet19 14 Jan

Interesting article, it touches on the most important parts of the economy of Bitcoin, its scarce supply and why its supply will not grow more than 21 million coins, also how the difficulty of the network evolves in terms of mining and costs, is very well explained.