pull down to refresh
242 sats \ 5 replies \ @grayruby 12 Mar \ on: One strategy I've used to orange pill my friends tutorials
I probably would have just said "bitcoin is a hedge against monetary debasement not consumer price inflation. The effects of monetary debasement are seen over longer periods of time (US dollar has lost x% of its purchasing power over the last y number of years), while consumer prices are subject to a number of other factors like geopolitics, supply chain interruptions, weather events, supply and demand cycles. The two are connected over the long term as the money supply expands it trickles in to any and all areas of the economy but not necessarily in the short term. Global money supply has just started to tick up after a couple years of contraction as central banks tightened to try and reign in inflation but a fiat system built on high levels of debt cannot handle long periods of contracting money supply before it implodes. If you think monetary debasement is over and governments of the world are going to suddenly all be fiscally responsible and it won't cause the entire system to collapse, you probably shouldn't buy bitcoin. If you are worried about the fiat price of bitcoin dropping 25% in a month after it went up over 100% in a year, you probably shouldn't buy bitcoin. If not, you should study money and bitcoin and consider dipping your toe in while you learn."
interesting... wonder if you actually got those extra 25sats?
reply
reply
wow cool
reply
I like it. My response would be shorter.
Markets are highly emotional and irrational in the short term. But in the long term it is the inverse. Look at bitcoin's market trend over the last 10 years vs anything else.
- The gains are wild
- It is clear that investors do not yet understand it
- Bitcoin has a dedicated group of true believers with massive conviction that create a floor when the speculators get scared.
The more time I spend talking with hobbyist "investors" the more I think they don't understand markets or the price system. They have learned a bunch of slogans and bromides about "investing" but they don't get the underlying principles of markets and the price system. I mean... there's the lack of understanding bitcoin but also the gap in understanding the free market price system. They kinda go together.
reply