0 sats \ 7 replies \ @Satosora 25 May \ parent \ on: The Paradox of Bitcoin Adoption bitcoin
I dont understand the paradox. What is the circular reasoning here? Bitcoin will only be as valuable as people think it is.
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10 sats \ 6 replies \ @didiplaywell OP 25 May
Yes, I'm not arguing against that. I'm just talking about adoption, never saying that bitcoin will not have value.
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0 sats \ 5 replies \ @Satosora 25 May
"fiat can be indefinitely multiplied, causing bitcoin to be virtually eternally unstable in fiat if the State wants to." ? Isnt this saying bitcoin wont have value?
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10 sats \ 4 replies \ @didiplaywell OP 25 May
No. Bitcoin is volatile today, yet it has value. What I'm saying is that that condition will remain true, as it is now.
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30 sats \ 3 replies \ @Satosora 25 May
I dont understand. As it increases in value, I believe the volatility will decrease. As more people adopt it, it will only become stronger.
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10 sats \ 2 replies \ @didiplaywell OP 25 May
Remember that that assumption implies:
  • First, that the fiat monetary base will stop augmenting, in which case, fiat currency will stop devaluing and thus become as robust as bitcoin, hindering its adoption, so back again to the paradox.
  • Second, that bitcoin will gradually replace fiat for exchanges (otherwise, if liquidated en masse -possible because the fiat counterpart will still exist- can still suffer extreme volatility at any point regardless of value) so that fiat stops being a liquidable counterpart, a deprecation process that yet again implies extreme volatility, which while already damaging by itself, will add for sure the hands of the state to the matter.
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0 sats \ 1 reply \ @Satosora 25 May
First off, I dont know what dream world you want to live in, but fiat is going to exist forever.
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0 sats \ 0 replies \ @didiplaywell OP 25 May
Let's take that for granted. That makes matters worse, as I pointed out, and condemns bitcoin to strict marginal adoption (for the masses).
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