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Offline mike623317

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BitUSD & Inflation
« on: December 02, 2014, 06:54:21 PM »


As the USD continues to devalue and loose its purchasing power, I'm wondering how bitUSD will retain its (unless you short it?).  If you're trying to escape the financial repression and use bitshares for everyday banking, i want to preserve my purchasing power. How does that work - as USD devalues so does bitUSD?

I realize that i can buy in bitgold. Sorry if this sounds like a newbie question
M

Offline Empirical1.1

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Re: BitUSD & Inflation
« Reply #1 on: December 02, 2014, 07:02:34 PM »

As the USD continues to devalue and loose its purchasing power, I'm wondering how bitUSD will retain its (unless you short it?).  If you're trying to escape the financial repression and use bitshares for everyday banking, i want to preserve my purchasing power. How does that work - as USD devalues so does bitUSD?

I realize that i can buy in bitgold. Sorry if this sounds like a newbie question
M

Yes BitGold would be good.

USD is still the world reserve currency, globally popular and it's very stable on a month to month basis so it will be used for trade a lot. (Merchants sell in BTC then convert to USD via BitPay now they can sell in BitUSD and keep a lot of their profits in BitUSD too.) It may be also be used by savers short term if the BitUSD interest is attractive enough. But yes if you want a long term store of value that will beat inflation, Gold has historically been your best bet.


Offline Ander

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Re: BitUSD & Inflation
« Reply #2 on: December 02, 2014, 07:07:00 PM »
USD has been low inflation for a number of years now, and it is possible that the yield on bitUSD would equal or exceed the inflation rate.  If inflation is a worry there is bitgold, bitsilver, etc.
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Offline mf-tzo

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Re: BitUSD & Inflation
« Reply #3 on: December 02, 2014, 10:02:34 PM »
Gold is a 6,000 year bubble.
BTC is a new bubble as well. Maybe BTC can be a new bubble and people make serious profits in a couple of years.maybe not..
USD = bitusd is a currency that will continue to lose it's purchase power since the US will continue to issue debt indefinitely.

So all in all the only way to retain your purchasing power is to have diversification to everything. You will lose from one but you will gain from the other. The important thing is that no matter what your investment appetite is, now you have a new choice. Trade and keep your assets in a decentralised bank and not be obliged to fully trust central banks and financial institutions.

Offline speedy

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Re: BitUSD & Inflation
« Reply #4 on: December 02, 2014, 10:03:48 PM »
Does the yeild on BitUSD beat inflation?

Offline Frodo

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Re: BitUSD & Inflation
« Reply #5 on: December 02, 2014, 10:28:50 PM »
Does the yeild on BitUSD beat inflation?

I think there is no general answer to this. Depends on the earned fees by the network and the inflation rate of USD.

 

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