On Tue, Mar 13, 2018 at 03:37:53AM -0400, grarpamp wrote: > https://www.reddit.com/r/Bitcoincash/comments/83uxf1/finally_we_priced_cryptocurrency_bch_can_now/
Damn - a TLDR which says no more than "I'll try and explain, read on"! Mofo! So, having had to read the fine article, here's a tldr for those who want it: Proposed value of BCH: - treat it as a store of value, rather than inherently valueless - even logically this is reasonable, even "ability to facilitate transaction between two humans" is an inherent value for any currency - traditional fiat currencies: at least one G20 country's fiat shall experience hyperinflation (halve value inside a month) in the next 30 years, and 28 other major currencies will be dragged into that quagmire with at least > 10% inflation for a period - start with M1 money supply, apparently ~$30T USD (globally) - 1% inflation hedge (i.e. hold this amount in DC/crypto) of this as a "reasonable hedge against future national inflation" -> $300BN - plus 'magical formula' hedge against hyperinflation -> $113BN - TOTAL = 300 + 113 = $413 BN (minimum baseline DC global valuation) - realistically, since various other actual purposes and values exist, DC's have a much higher inherent value proposition, e.g. a step towards decentralisation of currency creation, fluid (low cost, and low latency) cross border transactions (which PayPal certainly capitalized on), etc. >From the article: Facts Hyper-Inflation is defined as when a nation's currency loses 50% of its value in less than a 1 month period. Over the last 30 years, 28 countries have entered a state of Hyper-Inflation. Over the last 30 years, 2 G20 countries have entered a state of Hyper-inflation. The 2 G20 Countries are Brazil (1990) and Russia (1992). Their M1 money supply are approx 100BN and 300BN USD respectively.