Asshat wormie
2023 Asshat Award Winner
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Why would the value of one half of currency pair go down when the value of the other half goes down?
Bitcoins/Litecoins/Virtual Currencies
- Thread starter Tripamang
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Mist
REEEEeyore
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Yeah, but it should go in the opposite direction. The value of USD is deflating, as in you need more USD to buy the same amount of shit. Therefore it should take more USD to buy the same amount of crypto if it really is a store of value like gold, or the basis for its own non-fiat currency.
I really don't think you have any idea what you're talking about.
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The problem you have here is that you're conflating the daily ups and downs of the market (which aren't the product of inflation, but rather external and internal market forces like the CPI report causing reactionary traders to take a crap on the markets today) with inflation and it's long term affect on assets. This is like that argument about how "the weather" is not indicative of "the climate". Yes, today was down across the board for almost every asset class, and it was because of the overarching pressure the CPI puts on outlooks for all the markets, but it WASN'T because of the inflation itself (which everybody knows is happening) but about the psychological impact of the reporting of the inflation. I strongly suspect within the next day to three the markets will regain what they lost because this was a psychological reaction by traders.
Where you see "store of value" is in the long term, and you can't deny that long term the crypto market has seriously outperformed the dollars inflationary drag rate. Likewise stocks, gold, and other "hard assets" have tended to outperform the dollar which essentially is always losing value. All true valuable assets will hedge against fiat inflation debasing the currency over the long term (things which are scarce and valuable). It's why rich people don't store their wealth in cash. They store it in real estate, in stocks, in gold, in crypto, etc.... Understanding that is one of the first fundamental lessons is breaking out of being "a poor who came into a lot of money" and break into being "wealthy". You obviously get this on some level as you are keenly interested in making actual investments and making money off them.
And even some of the hardest hit by inflation in our times, the good people of Venezuela, can show you this. Because of the hyperinflation in their own country the first thing people do the second they get money is they go buy things, rather than having money, because they know by next week the money will be less valuable. In many of their cases the problem is they have to spend everything they make surviving, else they would probably be buying anything which was a durable good. In the US we aren't in the hyperinflation phase (yet), so for us the notable shock of inflation is much slower and more akin to the old "boiling the frog" adage.
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Tmac
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Flobee
Vyemm Raider
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Haus
has done a pretty good job of explaining this IMO. Inflation is hidden taxation (theft) of the populations productive time (life force if you want to frame it that way). Bitcoin represents, among other things, a monetary base that cannot be printed/inflated. You're seeing the monetization of the future reserve currency, unit of account, medium of exchange, in real time. This goes back to why I'm always harping about being careful what 'crypto' you put your value into. If your coin can be centrally printed/controlled you're kind of missing the entire purpose of what is happening in this space. You're just trading the Fed/Central Bankers for the Ethereum Foundation, or VCs that back your coin of choice. (NOTE: This is in the context of monetary debasement, Web 3.0 or whatever narrative of the week is another discussion)Zoom out your timeframe, and you'll see what we're talking about. Focusing on short term moves is foolish in this context and indicative of a fiat mindset.
Arden
Blackwing Lair Raider
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You've gotta be a pretty bad trader to lose money with crypto. Literally just wait a week and you'll be back in the green.
Mist
REEEEeyore
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I love how the picture in the article is literally a first-gen Pentium.
And now I'm pissed that I misplaced mine. I've got 2 486s, 2 early 2000s Xeons, an extremely sweet looking LGA-style UltraSparc IV+, and a Pentium II cartridge all within reach of me, but I can't find the Pentium 166 mhz from the first PC I built.
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The_Black_Log Foler
PalsCo CEO - Stock Pals | Pantheon Pals
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Tldr on merkle trees: just a hash tree for maintaining data integrity. They’re taking snapshots of data and hashing them into this data structure which results in unique outputs.
The_Black_Log Foler
PalsCo CEO - Stock Pals | Pantheon Pals
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Interested in getting into crypto just to diversify my investments. Im not a day trader and plan on holding investments for at least a year most likely. Im pretty familiar with blockchain/blockchain tech just not so much with crypto.
Any suggestions on coins to look into?
Any suggestions on coins to look into?
Ishad
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Tmac
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Arden
Blackwing Lair Raider
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The_Black_Log Foler
PalsCo CEO - Stock Pals | Pantheon Pals
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Thanks. Seems solid. I’ll probably throw in $5k, sit on it a year or two and reevaluate.
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Tmac
Adventurer
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Yeah.
When you know fiat is trash, but then watch Fed chairmen agree w you, bc they're why we're in this mess... I mean it's nice and all, but hella triggering at the same time.