Comment by doggosphere | Hacker News Reader

Comment by doggosphere | Hacker News Reader

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Value is created by having an asset that cannot artificially be inflated at will. It is a protocol that is open source, decentralized, permissionless, and censorship resistant.

Central banks have monopolized money and obliterated the concept of sound money when they began manipulating the interest rate. They allowed fractional reserve banking, where you can give out money you don't have. They created and spent trillion of dollars they didn't have to prop up markets through quantitative easing.

And now you have housing markets and stock markets in bubbles. Inflation that is inevitably coming.

Mortgage rates only ever go down to support the housing market.

http://www.fedprimerate.com/mortgage_rates_chart-graph.htm

Treasury yields only ever go down to support the stocks market.

https://www.macrotrends.net/2016/10-year-treasury-bond-rate-...

Debt to GDP ratio only ever goes up:

https://fred.stlouisfed.org/series/GFDEGDQ188S

Ask yourself why this is happening, and how we return to sound money.

"Value is created by having an asset that cannot artificially be inflated at will."

That is not value.

You can do that with Gold.

We could do that with an arbitrary fixed currency that someone invents.

BTC 'has not value' because it can't be used for anything - as a currency it's useless, and as a store of value it's next to useless (there are better stores of value).

Your comments about 'money' don't necessarily relate:

1) Currency is not supposed to be a hard store of value. It's there to grease the economy, not for you to hold large quantities. If you want to store value there are plenty of ways to do that.

2) Inflexible currency i.e. 'hard money' makes no sense, and that's why nobody uses it.

3) You say 'inflation is coming' - well if we have such bad currency, why hasn't inflation already taken root in the last 20 years? It really has not.

Again - BTC creates zero value, there's no point to it - it can't be used as currency and it's not a better a store of value than rare comic books.

You can do that with Gold.

Yes, we had gold as a monetary standard for quite some time.

1) Currency is not supposed to be a hard store of value. It's there to grease the economy, not for you to hold large quantities. If you want to store value there are plenty of ways to do that.

Money is supposed to be sound. Your notion that currency should not be a hard store of value is a new one, an idea created to support fiat. From first principles, money is a store of energy (creative work, physical work), which is then utilized for efficient exchange of goods and services. Money is not a tool for "greasing the economy", this was only possible when governments confiscated gold and declared all money to be paper that they controlled. Furthermore, buying stocks/houses/gold etc. is indeed a way of escaping USD into assets. However, someone else has to be willing to take that USD. It will still exist, and whoever holds it will be losing value over time. It is a problem when your base asset becomes toxic and no one wants it.

2) Inflexible currency i.e. 'hard money' makes no sense, and that's why nobody uses it.

We used gold and other rare metals for thousands of years. It was literally the global standard for trade.

3) You say 'inflation is coming' - well if we have such bad currency, why hasn't inflation already taken root in the last 20 years? It really has not.

The USD's buying power has fallen dramatically over time. Inflation has been very visible in home prices and stock prices.

https://howmuch.net/articles/rise-and-fall-dollar

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