Financial advisor friend asking me about bitcoin
He said the fixed supply makes no sense because you can fractionalize them
My response:
If you had a pizza that was cut into 21 pieces.
And then you cut them into 210 pieces
And then 2100 pieces
Does the pizza get bigger?
I happened to be eating pizza while texting with him too 🤣
Fractionalizing a bitcoin by adding 0's to the end makes no sense but QE does?
Not enough bitcoin to go around as adoption increases? Add another 0.
Mastering the transition to a deflationary world from an inflationary one, will scramble most peoples brains. In most cases the correct economic action is 180 degrees from what the normie advisor would suggest.
Could not agree more
It took me a while to grasp it and I wasn't directly benefiting from the old system
So I get it. But it's still painful
I think many financial advisors will be some of the last to understand. They might just jump in anyhow though because they’re tired of seeing Bitcoin returns out perform their portfolios.
It still blows my mind that THIS is the litmus test many people in tradfi are failing
Do you think they meant fractional reserve banking on BTC? Credit expansion till they just can’t even.
How would one reply to a crazy Gold Good BUG in his debate that what would happen if the Internet and or power goes out in Bitcoin?
A fairly decent explanation would be greatly appreciated....
I think bitcoin is flawed as it doesnt scale with population growth. So we would run into issues (in a hypothetical society run exclusively on bitcoin) much like today where the value of the currency would inflate or deflate but instead due to the population vs the amount in circulation. Continuing the problem with matching salary increase to cost of life increase
Either way. TLDR I think inflation/deflation is unavoidable.
