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Comment by pydry | Hacker News Reader

The value of USD is underpinned via demand manufactured through taxes. Crypto has no equivalent of taxes so it is almost entirely reliant upon perception. This is partly why HODLers are so aggressive in defending the perception. It's possible to literally "talk" their wealth into worthlessness.

There are countries that use USD but with the exception of ecuador (where you pay taxes in USD) i cant think of one that uses it exclusively.

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You're comparing a single country market to the entire world market. They are inherently different.

I am? I don't really see how.

US taxes (as base demand) are only paid by those interacting in the US market. Bitcoin base demand is international.

Anyway they are totally different assets with their own trajectories and influences. We don't know what will happen in the future.

What I do know is Bitcoin is deflationary while USD is inflationary by their nature.

>US taxes (as base demand) are only paid by those interacting in the US market. Bitcoin base demand is international.

This is nonsensical. More USD is traded internationally than bitcoin.

The value of USD for somebody living in Paraguay stems from a demand for US goods and services A) supplied by people who pay US taxes or B) supplied by client states of the US (e.g. saudi oil) who kind of also pay USD taxes in a roundabout way

I think you're getting a little off topic here. Whatever demand exists for USD there's a ton of sources in the world to supply same said USD that isn't the united states because as we all know it's a world reserve currency... This helps the USA because it makes it possible to print a ton of money and the inflation gets absorbed by all world wide holders of USD instead of just Americans. This keeps inflation way down while they print more money. But even so $1 is worth less and less everyday. Bitcoin has no such problem. It's deflationary. As long as there's a floor to it's demand it will continue to go up in value. Nothing in the past 9 years has disproved this concept.

If you think demand is beside the point and inflation is everything then you'd probably consider exchanging every dollar you have for a deflationary shitcoin.

And many do.

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