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darkoz
darkoz
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July 2nd, 2022 at 2:03:27 PM permalink
Quote: Ace2

Quote: darkoz

How has the US dollar been any different? It's just viewed through an inflation lens.

I have a few pennies from the 1940's. My mom told me a penny in 1940(she lived in NYC) brought her a bag of M&M's.

Today it takes 125 pennies(regardless from 1940 or today) in NYC to purchase a bag of M&M's.

Two years ago a gallon of gas was about $2. Now it's $5 for the same gallon.

How has wealth not been lost for the stable US dollar when the same dollars you had in your mattress from three years ago buys you less than half at the pump?
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M&Ms and gasoline 😆

The difference is that Bitcoin has depreciated about 200 times faster than the USD. It took the dollar about 15 years* to lose 37% of its value while bitcoin did it in one month.

To my knowledge, a couple/few percent inflation per year is ideal and expected in a healthy economy. On an annualized basis, bitcoin is showing an effective inflation rate of about 26,000 %. !!

One thing is indisputable: bitcoin is definitely not a stable place to store wealth, not even for the very short term.

*extrapolated from real vs nominal GDP over last 16 years
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AZDuffman has a good point.

Assuming you had access to a time machine and knew where everything would be today,

Going back to the year 2009, which would you invest in and hold until 2022? $1000 US or 1000 bitcoins?
For Whom the bus tolls; The bus tolls for thee
Ace2
Ace2
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July 2nd, 2022 at 2:25:37 PM permalink
If I had a time machine I would just go back three days and pick the right Powerball numbers, winning half of the $367 million dollar jackpot on a $2 investment. Good point

Cash is a place to store wealth on a temporary basis. You donít have a time machine and you donít ever want to risk losing 37% in one month holding cash. Ever
Last edited by: Ace2 on Jul 2, 2022
Itís all about making that GTA
Gundy
Gundy
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July 3rd, 2022 at 4:48:08 AM permalink
Any comparison between USD and bitcoin is meaningless to me. Who the hell "invests" in the USD? Not me.
AZDuffman
AZDuffman
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July 3rd, 2022 at 2:42:42 PM permalink
Quote: Gundy

Any comparison between USD and bitcoin is meaningless to me. Who the hell "invests" in the USD? Not me.
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Look at it this way, If you lived in Japan in the 1970s within 20 years of so your dollars lost 2/3 of their value vs the Yen. Yes, Japanese invested in dollars.
All animals are equal, but some are more equal than others
Ace2
Ace2
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July 3rd, 2022 at 4:21:56 PM permalink
No matter where you lived, your bitcoin lost more than 2/3rds of its value in the last eight months
Itís all about making that GTA
AZDuffman
AZDuffman
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July 3rd, 2022 at 4:33:25 PM permalink
Quote: Ace2

No matter where you lived, your bitcoin lost more than 2/3rds of its value in the last eight months
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Yet it is up nearly 400% since the virus hit in 2020.

BTC is a volatile investment but grows over the long term. If you cannot handle the swings do not invest.

BTC tends to go up about 400% peak to next peak. That means next peak should be in the $260,000 range in the mid 2020s.

That happens and we are definitely talking Cordoba.
All animals are equal, but some are more equal than others
UP84
UP84
Joined: May 22, 2012
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Ace2
July 4th, 2022 at 4:27:32 AM permalink
Quote: AZDuffman

BTC tends to go up about 400% peak to next peak. That means next peak should be in the $260,000 range in the mid 2020s.

That happens and we are definitely talking Cordoba.

More like Enron.
rxwine
rxwine
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July 4th, 2022 at 7:19:49 AM permalink
Facebook is ending it's 3-year experiment with crypto and telling people to withdraw by Sept.
The Hall of Unverified Claims is a vast place with many shelves.
Ace2
Ace2
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July 4th, 2022 at 4:02:28 PM permalink
Quote: AZDuffman

[
That happens and we are definitely talking Cordoba.
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Iím not familiar with that saying. Is it a reference to the Arab conquest of Spain ?
Itís all about making that GTA
AZDuffman
AZDuffman
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July 5th, 2022 at 3:02:52 AM permalink
Quote: Ace2

Quote: AZDuffman

[
That happens and we are definitely talking Cordoba.
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Iím not familiar with that saying. Is it a reference to the Arab conquest of Spain ?
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it is a quote from "WKRP In Cincinnati" when Herb calculates his possible commission. For those on here too young to remember the 1970s, the Cordoba was one of the cars that lower-level successful people aspired to. Cheaper than a Cadillac or Lincoln but still filled with all the comforts and rode like it was on a cloud.

All animals are equal, but some are more equal than others

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