Comment by jonathan-adly
4 years ago
> This is what people don't seem to understand about BitCoin. It is cashflow negative, Money has to keep coming in
Pretty sure a sizable portion of Bitcoin holders understand and know that. They don't hold Bitcoin as a form of bespoke investment to be exchanged for money at some point in the future. They hold it because they believe it is sound and incorruptible money.
And as long as they (not any additional people!) continue to believe that, it will hold value.
It is to be seen if they are right or wrong, but they know how cash flow works.
Is this Peter Pan? If you just believe in the power of BTC it will never go down in value?
I don't think Bitcoin is doing particularly well as a currency, but can you name one currency that will not go down in value if people stop believing in it?
Yes. The key realization is all forms of wealth preservation are the same. We value things because other people value them (once we have our basic needs met).
that's a strawman of the parent comment's argument. and yes, if enough people believe something, it takes on real significance. e.g. enough people believe in the full faith and credit of the US Gov that backs their printed paper with numbers on it, so it takes on real significance.