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To: delta7

“With up to 40 percent swings in “ value”, I disagree. The primary qualification for “ money” is to be stable, not a roller coaster. Carry on.”

Apples and oranges. He stated “stored value”, not money.


49 posted on 03/22/2025 7:03:28 PM PDT by TexasGator ("i//11111111I11'C'1111.'I,X1.1111'1'./iI11 .I1.11.'1I1.I'')
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To: TexasGator
Bitcoin is volatile because there is no consensus on its ultimate role in the world economy. Some of us think it will become the dominant world currency. Others think governments will kill it and maintain control. Others think it will have some niche role.

So every day there are headlines, "Bhutan announces strategic Bitcoin reserve plan." Bitcoin is taking over the world! Price shoots up! "Bitcoingateway hacked for $500M!" Oh no, bitcoin is doomed! Price crashes. If we had a consensus view for where bitcoin would be in 10 years it would be easy to set a glide path and agree on the current value within a narrow band. But the lack of consensus means every bit of news sends the market into an over-reaction.

In retrospect bitcoin had to establish a role as a store of value before it could become a medium of exchange, because a medium of exchange must have value in order to work in that function. As time passes clarity will gradually emerge over what is and isn't going to happen with bitcoin, and that will steadily narrow the bounds of the price swings. This in turn will make it more usable as a medium of exchange (which ironically could then induce another bout of volatility if that expands the possibilities for its future utility). The bottom line is that bitcoin volatility has steadily dropped compared to earlier history, and we can expect this will continue to be the case, but not suddenly.

56 posted on 03/23/2025 11:54:24 AM PDT by EnderWiggin1970
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