If Bitcoin was much better money than fiat, people would use it.
My country's currency is much better money than Bitcoin. I can pay basically everywhere with contactless payments, I did this 5 times today and it couldn't be any simpler. I can send money instantly to anyone in my country for free.
Volatility is minimal because the central bank actively tries to minimize it. Bitcoin or gold don't have this stabilizing mechanism, so they will always have worse volatility (assuming a responsible central bank).
Losses due to inflation are negligible if you have your money in a savings account and use other assets (stocks, bonds, real estate) for long-term saving.
If you want to use Bitcoin for long-term savings, the competitor is not fiat but stocks / bonds / real estate. And I don't see a good argument for Bitcoin. In a sufficiently long time horizon, stocks are guaranteed to outperform Bitcoin given some weak assumptions.
> Volatility is minimal because the central bank actively tries to minimize it. Bitcoin or gold don't have this stabilizing mechanism, so they will always have worse volatility (assuming a responsible central bank).
> In a sufficiently long time horizon, stocks are guaranteed to outperform Bitcoin given some weak assumptions.
In a sufficiently long time horizon, stocks will be priced in bitcoin. Rather than an index fund giving you 7% but with a 7-10% devaluation of your fiat (i.e. net return of -3% to 0%), it will return you 7% with no devaluation of the underlying money (net 7%).
Bitcoin is first proving itself as a store-of-value (fundamental for any money), then once it's growth has reached the point that it is stable enough to be used as a unit of account and medium of exchange, it will be, through demand from the people. Any volatility will be measured against bitcoin, not the other way round.
My country's currency is much better money than Bitcoin. I can pay basically everywhere with contactless payments, I did this 5 times today and it couldn't be any simpler. I can send money instantly to anyone in my country for free.
Volatility is minimal because the central bank actively tries to minimize it. Bitcoin or gold don't have this stabilizing mechanism, so they will always have worse volatility (assuming a responsible central bank).
Losses due to inflation are negligible if you have your money in a savings account and use other assets (stocks, bonds, real estate) for long-term saving.
If you want to use Bitcoin for long-term savings, the competitor is not fiat but stocks / bonds / real estate. And I don't see a good argument for Bitcoin. In a sufficiently long time horizon, stocks are guaranteed to outperform Bitcoin given some weak assumptions.