Expert Predicts Bitcoin's Landmark Surge | Hacker News Reader

Expert Predicts Bitcoin's Landmark Surge

bitcoininsightdaily.com

4 pointsMalaalof9 comments

There are less bitcoins than there are millionaires in the world, and the dollar is only going to continue to depreciate.

That's the desired end state, as far as I can tell. Make a deflationary currency and concentrate it in the hands of the very, very few who can "use it wisely".

Except, it'll be hard to prevent the many (as opposed to the very few) from buying this deflationary currency and thus profiting from speculating or putting their savings in it.

As long as the masses have something to offer to the few, their labor, they can profit from the deflation to the exact same degree as the few do.

This is what sets it apart from other easily tradeable financial assets. With most (if not all) other easily tradeable financial assets, there's no way for the individual to prevent governments and finance companies from skimming off arbitrage and thus making the individual lose relative to them, yet again.

With Bitcoin, as long as the individual sticks to the plain asset (instead of some derivative), no intermediary can claim the greater share of gains through appreciation.

The problem is that nobody buys bitcoin, they simply give some (generally shady) exchange their money and hope the number in their web browser goes up. Bitcoin COULD kill fractional reserve, IF people understand bitcoin, but they do not.

Not every speculator/investor buys Bitcoin directly or transfers their coins from exchange to wallet, true. But many do.

As can be seen from all the addresses contained in the blockchain. Some are typos/mistakes or burner addresses, sure. But a decent portion are actual addresses used by actual people or orgs.

HFSP

Are you aware of the point of a decentralized blockchain? Of a permissionless system? Bitcoin is both. Anyone (with access to texting) can buy + use bitcoin. That is about as permissionless as you can get.

"use it wisely" ??? What does this even mean? I don't think anyone actually thinks of large bitcoin holders as "the very, very few who can use it wisely."

PS. Bitcoin is not deflationary, it inflates at <2% per year and will continue to inflate until it reaches the 21 million cap. It will never deflate. Ethereum is roughly deflationary. [0]

[0] https://ultrasound.money/ (toggle BTC supply on + view a longer time frame)

Given that bitcoin gets unrecoverably lost, and that more than 90% of it has already been mined, is it not inherently deflationary?

20% of all bitcoin made through 2019 had supposedly already been lost: https://www.investopedia.com/news/20-all-btc-lost-unrecovera...

Maybe the loss rate has decreased, but it seems like the amount of circulating bitcoin can only go down over time.

Lost/burned tokens are not included in deflation calculations. We don't include lost dollars in the USD inflation calculation (afaik). The amount of circulating Bitcoin in circulation increases due to mining rewards.

Losing/burning coins should also become less notable over time as more people use better Bitcoin storage options, it's not built in to the protocol.

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