Fair point I agree. It will Come!
While adjusting for inflation may superficially seem appropriate, it actually doesn't make sense in this context. We're talking about exchange rates, not purchasing power. If the conversation were about purchasing power, then the ATH would happen at the same time everywhere.
Adjusting for inflation is assuming a fiat perspective.
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47 sats \ 7 replies \ @jeff 7 Mar
Do you put much faith in the government stats?
Every time I hear somebody adjusting for inflation, I mentally translate that to "I adjusted the numbers by made up numbers, to make a less relatable number".
There is just so much irony, and newspeak, in calling the adjustment "real".
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No, but that wasn't really my point. Even if the numbers were "correct" (whatever that would actually mean), it just doesn't make sense to adjust one side of an exchange rate for inflation.
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26 sats \ 4 replies \ @jeff 7 Mar
Oh, I totally get your point. I'm way past that, and agree. I was forking the thread. Just getting your take. :)
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I might disagree that inflation adjustments make the number less relatable. It at least adjusts it in the right direction usually, right?
The problem is that it's used to gaslight people about how the economy is doing.
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"Gaslight" is the key word for this article, indeed.
There’s just one problem: Adjusted for inflation, Bitcoin is actually worth less than it was three years ago.
This sentence calls to mind one of Mark Twain's timeless quips, "There are lies, damn lies, and statistics."
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Ha ha ha cold hard facts!
I haven’t looked at it that way before, makes sense. There is also real inflation not the made up government number!
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Yeah, this article's consideration is for the "bitcoin as an investment" class. It also looks like a sales pitch to convince people to continue investing in the inflated equities market.
"For example, we can compare Bitcoin’s price to a fund that just tracks the performance of the overall stock market, like the SPDR S&P 500 ETF. When you adjust for inflation, that fund was worth a little over 1.5% less on Tuesday than it was three years ago. That means if you bought $10,000 of Bitcoin at its peak, your money would be worth about $9,050 today. If you bought $10,000 of the SPDR S&P 500 ETF at the same time, it would be worth $9,850. Inflation hits old-school investments the same way it hits Bitcoin, but this time around, you would have been better off investing in the regular old stock market."
What a joke!
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Fair counterpoint! Bitcoin shifts the lens for purchasing power. 1 Bitcoin = 1 Bitcoin
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36 sats \ 2 replies \ @jeff 7 Mar
The author's point is that if you bought the top, with USD, you would be down in real terms.
And, if you bought the S&P at the same time, you would be down less, in real terms.
🍒⛏️
But ignores the fact that if you bought neither, and held USD, you'd be "down" the same. But had no upside potential.
🤡🌎
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It's fair to point out that we haven't hit ATH for purchasing power yet, but it's a sloppy way to do it.
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Yup and not even the halving yet. This will be a moot point shortly!
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The beautiful thing about Bitcoin is that there will never be an "adjustment for inflation" because Bitcoin cannot be inflated. It is the immovable object, the great anvil upon which all softer forms of money will get pounded.
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Instead, Bitcoin has an adjustment for deflation, because as some coins get irretrievably lost, everyone else's Bitcon becomes more valuable.
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Probably 1 million coins have been lost from 2009 and 2010
Then Silk Road arrived in 2011 and those coins became more valuable lol 😆
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Dollar value is irrelevant. But.... Let's just say it is so so early in the ride to infinity and I am grateful to be here now.
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Yes, I’m coming around to this. How else can you quantify purchasing power at this time? For now it’s lord dollar but the sat is coming!
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Both Nov 2021 and this week’s ATH were both just brief wicks. We will make a decided move past 70k soon.
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1 BTC = 1 BTC
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Lol, article mentioned 9.6% inflation over 3 years more like 18%.
Buy bitcoin. Most of Biden's year one Bidenomics spending is just now getting deployed. That chip manufacturing and infrastructure money is going to drive major inflation in US construction further stretching underwater commercial real estate projects.
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Agreed! They lie why trust their numbers!
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5 sats \ 1 reply \ @nout 7 Mar
"If you do the math, bitcoin is actually worth more than $7,000 less than it was three years ago" is a big brain sentence.
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Very big brain!
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Fuck the price!
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Numbers are static. When we talk about ATH, it is definitely about numbers not about anything else.
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