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RE: Musing Posts

in #musing-threads6 years ago

It's better, period. However, there are explanations behind why it's better if it stays quiet, lemme explain:

I'm sure you know of gold, the store of value?, well, gold is nice, dandy and everything but it's certainly worth several times more than some years ago, why? INFLATION, that and market movements. As the markets and the commodities become more volatile people SUFFER, and I mean it, losing 10, 20 or 30% overnight is enough to cause serious health problems. So when things start getting hectic, like in 2008, or with the QE we had a few years back people need the SAFETY.

So, what happens when there is fear and crisis worldwide? People buy the safest things out there, which are: Gold, Swiss Francs, Japanese yen and real estate at times.

However, Gold can still be mined, Francs and yens can be printed and real estate can be built... Bitcoin is FINITE and extremely secure. By keeping the value stable instead of volatile it will slowly move up due to demand as a SAFE asset.

So, it's actually better for bitcoin prices to be stable and move less than 1% per day, allowing for flow of money and stability. As years pass, if cryptos are still used (which is becoming increasingly likely) then Bitcoin will be worth hundreds of thousands of dollars, as people just keep buying it for safety and stability.

Most of the most valued and better stocks out there move less than 1% per day, often gaining just 10 or 12% in a year... but it adds up. Look at bitcoin, 6500$, next year it would be 7100$, the next 7800$, the next 8550$, the next 9350$, the next 10400$ and so forth... in twenty years we would be over 20k and that's assuming lack of interest and low growth perspective.

On the opposite side of the coin, bigger volatility means lack of stability which means lack of safety which means it will lose all value on the first world crisis we hit, which should come soon enough, we're already near the date predicted by many analysts, BTW.

There is a simple proof of what I explained in the market... when there is indecision or news of a hack, all alts lose 50 or 60% of their value while BTC loses only 5 or 4%, and that's why BTC dominance is over 50% ATM, everyone knows that a random coin can suddenly die, but BTC can fall at most 10% during critical times which means people sell their alts for BTC, for safety.

If you remove that stability then people would move the alts to USDT, effectively killing the whole market and the value of Bitcoin in general.

Long explanation, but I hope it helps.

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Thanks... it’s a really great and clear explanations.

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