lucas on Nostr: That's a valid point. Let's pretend a whole coin price remains indefinitely fairly ...
That's a valid point. Let's pretend a whole coin price remains indefinitely fairly linear and no further flash crashes...
If you held $100,000 worth of Bitcoin and $100,000 in cash, and high inflation continues to cause the dollar's purchasing power to halve over a period of time, the Bitcoin would still buy the same amount of stuff as it used to (assuming Bitcoin's price was unchanged in dollar terms) and now even more so than before. But your $100,000 in cash would now only buy half as much as before.
So simply holding Bitcoin will preserve your purchasing power while holding cash would lose purchasing power, even with relatively no increase in Bitcoin's nominal price.
If you held $100,000 worth of Bitcoin and $100,000 in cash, and high inflation continues to cause the dollar's purchasing power to halve over a period of time, the Bitcoin would still buy the same amount of stuff as it used to (assuming Bitcoin's price was unchanged in dollar terms) and now even more so than before. But your $100,000 in cash would now only buy half as much as before.
So simply holding Bitcoin will preserve your purchasing power while holding cash would lose purchasing power, even with relatively no increase in Bitcoin's nominal price.