Author: Anthony Towns 2015-08-10 19:26:20
Published on: 2015-08-10T19:26:20+00:00
The email conversation posted on August 10, 2015, between Hector Chu and Anthony Towns via Bitcoin-dev mailing list discussed the time value of Bitcoin. While Chu argued that one could sell their Bitcoin for fiat and hold it for interest, Towns countered by saying that it only works if the interest rate on the fiat account is greater than the price rise in Bitcoin over the same term. In such cases, it would result in a -22.75% rate, while a 0% rate would only mean ending up with as many Bitcoins after a year as you started with. Towns noted that people mostly sit on their coins hoping they appreciate, and hence, they are earning 0%, denominated in Bitcoin, and have a time-value of Bitcoin of zero. The post also highlighted that one might get a positive rate of return on Bitcoin invested today by running an exchange or a gambling service of some sort. Nonetheless, Towns' post is still relevant in today's context as the debate around Bitcoin's time value continues to be a topic of discussion among investors and traders alike.
Updated on: 2023-05-19T21:29:02.726921+00:00