tetrasect
Honorary Master
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- Aug 22, 2009
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Of course it isn't immune to inflation - it is only immune to government-produced inflation. The very points that people use to fool people about Bitcoin is that it has a finite supply. This means that as long as more people want it and the price goes up
Yes, inflation is caused by governments printing money and results in the value of the currency decreasing/prices getting higher. The value of fiat currency has been in decline since it's inception. Bitcoin on the other hand has steadily increased in value since it's inception. In fact, when it comes to BTC people worry more about deflation than inflation.
I remember back in the days (you could buy a BTC for a few US cents) when people were saying BTC is just worthless 1's and 0's and would crash to 0 before ever gaining enough value to equal the mighty dollar. Fast forward to today and we are seeing an entirely different picture, where the dollar is worth over 10,000 times less than a BTC. Quite incredible really...
But the usa can say tomorrow that tether is a scam (which it is) and that bitcoin is outlawed and anyone that holds any will go to jail for 10 years. Do you think it will still have fiat value then? And most people cash out decentralised crypto to centralised fiat
And they have banned it in many countries. That didn't stop anyone from holding or using it though, and it has since been un-banned again.
It's a lot harder to ban a currency that is not centralized, government controlled and reliant on banks for transfers.
You can send BTC to someone and be the only person in the world that knows about it (the receiver might know that they received BTC but they wouldn't know from whom). So how could they ever enforce a ban?
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