Charles Darwin Bitcoiner on Nostr: Great insights here from Spirit of Satoshi ______________ ...
Great insights here from Spirit of Satoshi (nprofileโฆ9tuf)
______________
๐ช๐ฒ๐น๐ฐ๐ผ๐บ๐ฒ ๐ฏ๐ฎ๐ฐ๐ธ ๐๐ผ ๐๐จ๐ ๐๐ฟ๐ถ๐ฑ๐ฎ๐!
Every Friday, I respond to some common FUD, so you can use my response when you need it.
This weekโs FUD:
โ๐ฝ๐๐ฉ๐๐ค๐๐ฃ ๐๐จ ๐ฉ๐ค๐ค ๐ซ๐ค๐ก๐๐ฉ๐๐ก๐!โ
Iโm sure youโve heard this criticism a ๐ญ๐ฐ๐ต, so be sure to ๐๐ผ๐ผ๐ธ๐บ๐ฎ๐ฟ๐ธ๐ this answer!
Here we goโฌ๏ธ
PricedinBTC (nprofileโฆ2edy)
The matter of Bitcoinโs volatility comes down to ๐ฑ๐ฆ๐ณ๐ด๐ฑ๐ฆ๐ค๐ต๐ช๐ท๐ฆ. Viewing #Bitcoin through a fiat lens, of course its price is going to look volatile. But flipping that around to observe fiat through a Bitcoin lens, fiat looks ๐ซ๐ถ๐ด๐ต as volatile!
So measuring Bitcoin or fiat against each other is purely subjective, and ๐ฑ๐ผ๐ฒ๐๐ปโ๐ ๐๐ฒ๐น๐น ๐๐ ๐ฎ๐ป๐๐๐ต๐ถ๐ป๐ด ๐๐๐ฒ๐ณ๐๐น. We need to find a central attribute of each asset that we can compare ๐ฐ๐ฃ๐ซ๐ฆ๐ค๐ต๐ช๐ท๐ฆ๐ญ๐บ, if weโre ever going to determine which is volatile and which is stable. So letโs dive down to the roots by examining their underlying monetary policies.
At its core, fiatโs monetary policy is inherently ๐ณ๐ฆ๐ข๐ค๐ต๐ช๐ท๐ฆ. Its issuance rate fluctuates wildly, based on a number of external factors, such as national politics, international conflicts, the real estate market, and hundreds of other outside influences. These cause central banks to raise and lower their interest rates, which directly affects the pace at which new money is borrowed into existence.
Contrast that with Bitcoin, which is entirely ๐ฑ๐ณ๐ฐ๐ข๐ค๐ต๐ช๐ท๐ฆ. Approximately every 10 minutes, 6.25 new bitcoin are given to those who worked to protect the network for everyone. Whenever that pace rises or falls, it automatically adjusts every 2016 blocks, or about every 2 weeks, to keep it at 10 minute intervals. There could be political intrigue, wars, famine, and anything else, but ๐๐ต๐ฒ ๐ต๐ผ๐ป๐ฒ๐ ๐ฏ๐ฎ๐ฑ๐ด๐ฒ๐ฟ ๐ผ๐ณ ๐บ๐ผ๐ป๐ฒ๐ ๐ฑ๐ผ๐ปโ๐ ๐ฐ๐ฎ๐ฟ๐ฒ. ๐๐ช๐ค๐ฌ-๐ต๐ฐ๐ค๐ฌ, ๐ฏ๐ฆ๐น๐ต ๐ฃ๐ญ๐ฐ๐ค๐ฌ.
So which one sounds more volatile to you, the money based on the whims and emotions of human beings, or the money based on math and unchangeable code? Bitcoinโs level of predictability has ๐ฏ๐ฆ๐ท๐ฆ๐ณ existed in money before, but itโs essential that money, as the foundation of civilization, be as strong and stable as possible.
๐๐โ๐ ๐ฝ๐ฟ๐ฒ๐ฐ๐ถ๐๐ฒ๐น๐ ๐ฏ๐ฒ๐ฐ๐ฎ๐๐๐ฒ ๐ผ๐ณ ๐๐๐๐ฉโ๐จ ๐๐ผ๐น๐ฎ๐๐ถ๐น๐ถ๐๐ ๐๐ต๐ฎ๐ ๐ฐ๐ถ๐๐ถ๐น๐ถ๐๐ฎ๐๐ถ๐ผ๐ป ๐ถ๐ ๐ฏ๐ฟ๐ฒ๐ฎ๐ธ๐ถ๐ป๐ด ๐ฑ๐ผ๐๐ป, ๐ฎ๐ป๐ฑ ๐๐ผ๐ฐ๐ถ๐ฎ๐น, ๐ณ๐ถ๐ป๐ฎ๐ป๐ฐ๐ถ๐ฎ๐น, ๐ฎ๐ป๐ฑ ๐ถ๐ป๐๐ฒ๐ฟ๐ป๐ฎ๐๐ถ๐ผ๐ป๐ฎ๐น ๐ฐ๐ผ๐ป๐ณ๐น๐ถ๐ฐ๐๐ ๐ฎ๐ฏ๐ผ๐๐ป๐ฑ ๐ถ๐ป ๐๐ต๐ฒ ๐๐ผ๐ฟ๐น๐ฑ ๐๐ผ๐ฑ๐ฎ๐.
With all that said, Bitcoin is still very new, and proper knowledge about it is not evenly distributed, so ๐ฝ๐ฟ๐ถ๐ฐ๐ฒ ๐๐ผ๐น๐ฎ๐๐ถ๐น๐ถ๐๐ ๐ถ๐ป ๐ณ๐ถ๐ฎ๐ ๐๐ฒ๐ฟ๐บ๐ ๐๐ต๐ผ๐๐น๐ฑ ๐ฏ๐ฒ ๐ฒ๐ ๐ฝ๐ฒ๐ฐ๐๐ฒ๐ฑ. When gold first started being used as money, its price โ as measured in seashells or other primitive forms of money โ was likely quite volatile. The same is true of Bitcoin today.
If one insists on measuring Bitcoinโs value in fiat, then itโs important to remember that ๐๐ถ๐๐ฐ๐ผ๐ถ๐ปโ๐ ๐ฝ๐ฟ๐ถ๐ฐ๐ฒ ๐ถ๐ ๐๐ผ๐น๐ฎ๐๐ถ๐น๐ฒ ๐๐ผ ๐๐ต๐ฒ ๐๐ฝ๐๐ถ๐ฑ๐ฒ. ๐๐ฐ ๐ฐ๐ฏ๐ฆ who has owned Bitcoin for at least 4 years has ever lost purchasing power, and most tend to ๐จ๐ข๐ช๐ฏ quite a bit in that time, just by buying and holding.
Just like you wouldnโt let anyone convince you that the world was flying by and your car is stationary while you drive down the road, you shouldnโt let anyone convince you that Bitcoin is volatile while fiat is stable. ๐๐ถ๐๐ฐ๐ผ๐ถ๐ป ๐ถ๐ ๐ฉ๐๐ ๐ข๐ค๐จ๐ฉ ๐จ๐ฉ๐๐๐ก๐ ๐๐จ๐จ๐๐ฉ ๐๐ต๐ฎ๐ ๐ต๐ฎ๐ ๐ฒ๐๐ฒ๐ฟ ๐ฒ๐ ๐ถ๐๐๐ฒ๐ฑ. Itโs ๐ง๐ช๐ข๐ต thatโs objectively volatile.
woonomic (nprofileโฆgvnl)
Know anyone whoโs spreading this FUD?
๐ฆ๐ต๐ฎ๐ฟ๐ฒ๐ this with them so they can know the truth.
Make sure you ๐๐ผ๐ผ๐ธ๐บ๐ฎ๐ฟ๐ธ๐ this post for the next time you cross paths with this FUD!
Do you think you can give a better answer?
Leave it in the ๐ฐ๐ผ๐บ๐บ๐ฒ๐ป๐๐๐
๐ฑ๐ฌ๐ฌ๐ฌ ๐๐ฎ๐๐ ๐๐ถ๐น๐น ๐ด๐ผ ๐๐ผ ๐๐ต๐ฒ ๐ผ๐ป๐ฒ ๐๐ต๐ผ ๐๐ฟ๐ถ๐๐ฒ๐ ๐๐ต๐ฒ ๐ฏ๐ฒ๐๐ ๐ถ๐ป ๐๐ต๐ฒ ๐ป๐ฒ๐ ๐ ๐ฎ๐ฐ ๐ต๐ผ๐๐ฟ๐!
______________
๐ช๐ฒ๐น๐ฐ๐ผ๐บ๐ฒ ๐ฏ๐ฎ๐ฐ๐ธ ๐๐ผ ๐๐จ๐ ๐๐ฟ๐ถ๐ฑ๐ฎ๐!
Every Friday, I respond to some common FUD, so you can use my response when you need it.
This weekโs FUD:
โ๐ฝ๐๐ฉ๐๐ค๐๐ฃ ๐๐จ ๐ฉ๐ค๐ค ๐ซ๐ค๐ก๐๐ฉ๐๐ก๐!โ
Iโm sure youโve heard this criticism a ๐ญ๐ฐ๐ต, so be sure to ๐๐ผ๐ผ๐ธ๐บ๐ฎ๐ฟ๐ธ๐ this answer!
Here we goโฌ๏ธ
PricedinBTC (nprofileโฆ2edy)
The matter of Bitcoinโs volatility comes down to ๐ฑ๐ฆ๐ณ๐ด๐ฑ๐ฆ๐ค๐ต๐ช๐ท๐ฆ. Viewing #Bitcoin through a fiat lens, of course its price is going to look volatile. But flipping that around to observe fiat through a Bitcoin lens, fiat looks ๐ซ๐ถ๐ด๐ต as volatile!
So measuring Bitcoin or fiat against each other is purely subjective, and ๐ฑ๐ผ๐ฒ๐๐ปโ๐ ๐๐ฒ๐น๐น ๐๐ ๐ฎ๐ป๐๐๐ต๐ถ๐ป๐ด ๐๐๐ฒ๐ณ๐๐น. We need to find a central attribute of each asset that we can compare ๐ฐ๐ฃ๐ซ๐ฆ๐ค๐ต๐ช๐ท๐ฆ๐ญ๐บ, if weโre ever going to determine which is volatile and which is stable. So letโs dive down to the roots by examining their underlying monetary policies.
At its core, fiatโs monetary policy is inherently ๐ณ๐ฆ๐ข๐ค๐ต๐ช๐ท๐ฆ. Its issuance rate fluctuates wildly, based on a number of external factors, such as national politics, international conflicts, the real estate market, and hundreds of other outside influences. These cause central banks to raise and lower their interest rates, which directly affects the pace at which new money is borrowed into existence.
Contrast that with Bitcoin, which is entirely ๐ฑ๐ณ๐ฐ๐ข๐ค๐ต๐ช๐ท๐ฆ. Approximately every 10 minutes, 6.25 new bitcoin are given to those who worked to protect the network for everyone. Whenever that pace rises or falls, it automatically adjusts every 2016 blocks, or about every 2 weeks, to keep it at 10 minute intervals. There could be political intrigue, wars, famine, and anything else, but ๐๐ต๐ฒ ๐ต๐ผ๐ป๐ฒ๐ ๐ฏ๐ฎ๐ฑ๐ด๐ฒ๐ฟ ๐ผ๐ณ ๐บ๐ผ๐ป๐ฒ๐ ๐ฑ๐ผ๐ปโ๐ ๐ฐ๐ฎ๐ฟ๐ฒ. ๐๐ช๐ค๐ฌ-๐ต๐ฐ๐ค๐ฌ, ๐ฏ๐ฆ๐น๐ต ๐ฃ๐ญ๐ฐ๐ค๐ฌ.
So which one sounds more volatile to you, the money based on the whims and emotions of human beings, or the money based on math and unchangeable code? Bitcoinโs level of predictability has ๐ฏ๐ฆ๐ท๐ฆ๐ณ existed in money before, but itโs essential that money, as the foundation of civilization, be as strong and stable as possible.
๐๐โ๐ ๐ฝ๐ฟ๐ฒ๐ฐ๐ถ๐๐ฒ๐น๐ ๐ฏ๐ฒ๐ฐ๐ฎ๐๐๐ฒ ๐ผ๐ณ ๐๐๐๐ฉโ๐จ ๐๐ผ๐น๐ฎ๐๐ถ๐น๐ถ๐๐ ๐๐ต๐ฎ๐ ๐ฐ๐ถ๐๐ถ๐น๐ถ๐๐ฎ๐๐ถ๐ผ๐ป ๐ถ๐ ๐ฏ๐ฟ๐ฒ๐ฎ๐ธ๐ถ๐ป๐ด ๐ฑ๐ผ๐๐ป, ๐ฎ๐ป๐ฑ ๐๐ผ๐ฐ๐ถ๐ฎ๐น, ๐ณ๐ถ๐ป๐ฎ๐ป๐ฐ๐ถ๐ฎ๐น, ๐ฎ๐ป๐ฑ ๐ถ๐ป๐๐ฒ๐ฟ๐ป๐ฎ๐๐ถ๐ผ๐ป๐ฎ๐น ๐ฐ๐ผ๐ป๐ณ๐น๐ถ๐ฐ๐๐ ๐ฎ๐ฏ๐ผ๐๐ป๐ฑ ๐ถ๐ป ๐๐ต๐ฒ ๐๐ผ๐ฟ๐น๐ฑ ๐๐ผ๐ฑ๐ฎ๐.
With all that said, Bitcoin is still very new, and proper knowledge about it is not evenly distributed, so ๐ฝ๐ฟ๐ถ๐ฐ๐ฒ ๐๐ผ๐น๐ฎ๐๐ถ๐น๐ถ๐๐ ๐ถ๐ป ๐ณ๐ถ๐ฎ๐ ๐๐ฒ๐ฟ๐บ๐ ๐๐ต๐ผ๐๐น๐ฑ ๐ฏ๐ฒ ๐ฒ๐ ๐ฝ๐ฒ๐ฐ๐๐ฒ๐ฑ. When gold first started being used as money, its price โ as measured in seashells or other primitive forms of money โ was likely quite volatile. The same is true of Bitcoin today.
If one insists on measuring Bitcoinโs value in fiat, then itโs important to remember that ๐๐ถ๐๐ฐ๐ผ๐ถ๐ปโ๐ ๐ฝ๐ฟ๐ถ๐ฐ๐ฒ ๐ถ๐ ๐๐ผ๐น๐ฎ๐๐ถ๐น๐ฒ ๐๐ผ ๐๐ต๐ฒ ๐๐ฝ๐๐ถ๐ฑ๐ฒ. ๐๐ฐ ๐ฐ๐ฏ๐ฆ who has owned Bitcoin for at least 4 years has ever lost purchasing power, and most tend to ๐จ๐ข๐ช๐ฏ quite a bit in that time, just by buying and holding.
Just like you wouldnโt let anyone convince you that the world was flying by and your car is stationary while you drive down the road, you shouldnโt let anyone convince you that Bitcoin is volatile while fiat is stable. ๐๐ถ๐๐ฐ๐ผ๐ถ๐ป ๐ถ๐ ๐ฉ๐๐ ๐ข๐ค๐จ๐ฉ ๐จ๐ฉ๐๐๐ก๐ ๐๐จ๐จ๐๐ฉ ๐๐ต๐ฎ๐ ๐ต๐ฎ๐ ๐ฒ๐๐ฒ๐ฟ ๐ฒ๐ ๐ถ๐๐๐ฒ๐ฑ. Itโs ๐ง๐ช๐ข๐ต thatโs objectively volatile.
woonomic (nprofileโฆgvnl)
Know anyone whoโs spreading this FUD?
๐ฆ๐ต๐ฎ๐ฟ๐ฒ๐ this with them so they can know the truth.
Make sure you ๐๐ผ๐ผ๐ธ๐บ๐ฎ๐ฟ๐ธ๐ this post for the next time you cross paths with this FUD!
Do you think you can give a better answer?
Leave it in the ๐ฐ๐ผ๐บ๐บ๐ฒ๐ป๐๐๐
๐ฑ๐ฌ๐ฌ๐ฌ ๐๐ฎ๐๐ ๐๐ถ๐น๐น ๐ด๐ผ ๐๐ผ ๐๐ต๐ฒ ๐ผ๐ป๐ฒ ๐๐ต๐ผ ๐๐ฟ๐ถ๐๐ฒ๐ ๐๐ต๐ฒ ๐ฏ๐ฒ๐๐ ๐ถ๐ป ๐๐ต๐ฒ ๐ป๐ฒ๐ ๐ ๐ฎ๐ฐ ๐ต๐ผ๐๐ฟ๐!