1 upvotes, 1 direct replies (showing 1)
View submission: Don't invest recklessly
[deleted]
Comment by reddlvr at 30/11/2017 at 06:03 UTC
1 upvotes, 0 direct replies
The value of fiat doesn't go down. Stays the same (assuming the current financial system doesn't collapse).
Let's say a cup of coffee cost today $3 at todays prices 0.000290BTC. If fiat stays the same dynamics, with inflation it will be $4 in the future... Assuming Bitcoin maintains it's credibility as exchange currency, bitcoins by then will be way more scarce, so the assigned mental value to a cup of coffee will be way less than 0.000290BTC, and as a result BTCUSD will be way higher than it is today.
Fiat's are artifically inflationary (central banks print money out of nothing to cause inflation), Bitcoin is deflationary by design. This conflict very likely means BTCUSD will go higher if BTC survives as a credible asset (no scalability problems, no security problems ......)