balajis's avatar
balajis 1 year ago
SUPERBITCOINIZATION IS ALREADY HERE “Normal” inflation is 2% per year. Or roughly 0.2% per month. And hyperinflation is 50% per month. So, we aren’t there yet. It’s all fine! But is it? What if we define something in between? Call it superinflation. Say superinflation is 5% per month. In that case… BTC has appreciated >20000% vs USD. Over a ten year period. That’s a monthly rate of >8.6%. That means the dollar has devalued against Bitcoin by more than 5% per month on average for ten years. So: yes, hyperbitcoinization hasn’t hit yet. But superbitcoinization is already here. We’ve been living through it. image

Replies (37)

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S Murad 1 year ago
Welcome to Nostr, Balaji, we’re all very glad to have you here!!
Japhyrider 's avatar
Japhyrider 1 year ago
get yer wallet sorted ser. zaps are waiting
frphank's avatar
frphank 1 year ago
Value of bitcoin in tangible stuff: 10 years ago -- zero Today -- zero Certainly stable in some sense.
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Nicholas 's avatar
Nicholas 1 year ago
bitcoin is monetizing lineearly, but at soms point it goes hyper.
buyBTCRetireEarly's avatar
buyBTCRetireEarly 1 year ago
LFG Hi Balaji I want to raise a bet of 100 sats that bitcoin will go to 100k this 2024
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npub1v6gv...vfc8 1 year ago
Come on mate - get that LURL in your profile quick smart! ⚡️ ⚡️ ⚡️
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Satosha satosha@nsec.app 1 year ago
the purpose of currencies is to make sure commodities don't catch the deflationary trend .. I mean if you transacted in assets ( gold or btc) ; the mass manufactured commodities would soon hit the rock bottom. Because commodities are the lowest value per unit .. which means no incentive for producing wheat unless it becomes scarece. you don't want people to fight for food .. Thus comparing assets to currencies ain't a good idea .. we need to strive for better currencies (eg USD stables) as much as we strive to have sound assets ( eg btc) Assets and Currencies are two wheels of a cart .. it is efficient to run economy on two wheels rather than just one ! Sound Currencies protect the poor. Sound Assets support the rich . Both are necessary . Keyword here is "sound" - corruption is possible in both .
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Satosha's avatar
Satosha satosha@nsec.app 1 year ago
Even a sound currency ( say USD) is by definition permissioned , censored and without consent. As opposite to a sound asset which is quite the opposite. Through controls, currencies bring stability to commodity prices .. to allow long term investment in commodities irrespective of demand forecasts. They provide credit and liquidity in market place. And most importantly, they fight deflation. Arbitrary controls allow the issuer of currency to navigate the economy in a desired direction - good or bad depends on the driver .. some currencies will fail sooner .. good will last longer .. but ultimately they too must evolve or die. Store of value is supposed to protect the wealth for longer horizons .. time scales of thousands of years plus .. eg Gold . It too must evolve but that evolution cycl s in the range of thousands of years . eg Gold is now evolving into digital form BTC .
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Paula 1 year ago
Interesting. When do you think hyperinflation hits? Still a good time to accumulate #Bitcoin
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Bitcoin Nora BitcoinNora@BitcoinNostr.com 1 year ago
The btc/gbp price has risen by over 80% in the last 6 months. Meanwhile the UK has just confirmed it is in recession. The UK fell into a recession after it raised interest rates to above 5% in 2023 in order to tame inflation. However, btc/gbp is one measure of inflation [1] that the UK gov cannot properly tamper with. The cat is out of the bag in other words. With the UK's next election being held no later than 2025 and the elevated cost of borrowing dragging on the economy, the Bank of England will surely turn to lowering interest rates (and QE) to stimulate growth. This will (again) set the fire alarm off that is btc/gbp, which could be set to soar in the 18 months ahead, and for the rest of time. #bitcoin #GBP #UK 🇬🇧 [1] View quoted note →
[ARCHIVED] Jay's avatar
[ARCHIVED] Jay archived@wisehodl.dev 1 year ago
Aaaand he's gone. Only lasted a day.
balajis's avatar balajis
SUPERBITCOINIZATION IS ALREADY HERE “Normal” inflation is 2% per year. Or roughly 0.2% per month. And hyperinflation is 50% per month. So, we aren’t there yet. It’s all fine! But is it? What if we define something in between? Call it superinflation. Say superinflation is 5% per month. In that case… BTC has appreciated >20000% vs USD. Over a ten year period. That’s a monthly rate of >8.6%. That means the dollar has devalued against Bitcoin by more than 5% per month on average for ten years. So: yes, hyperbitcoinization hasn’t hit yet. But superbitcoinization is already here. We’ve been living through it. image
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