Post #349 by tecmo on the Macroeconomic Trends and Risks board

Personal Finance Topics / Macroeconomic Trends and Risks

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Here and elsewhere Syke6 has patiently explained (most recently on the Berkshire board) to enthusiasts why Bitcoin will not soon (probably never) become the reserve currency, basis for a monetary system, etc. - most of it boiling down to “it’s volatile.”

Who wants to sell something on Tuesday and by the time you get to the bank on Thursday find it’s lost 10%-20% of its “worth”?

I doubt Bitcoin has enough scale to become a reserve currency in any timeframe that would impact me. But that doesn't make it useless.

Consider those that live in economies without a stable currency (ie: outside of US,EU,G7 countries). If I lived in one of those places I would be all over Bitcoin as a potential hedge against massive devaluation of savings (it would be just an option, investing in USD based equities would still be my first option). Some of these countries have strict currency conversion rules as well that further make Bitcoin attractive; and if you can live with the volatility it has been a very good option the past 10 years.

tecmo
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