Olga Zeveleva
December 2017.
23

How can you trust a system where about half of early-mined bitcoins have never been used, and therefore maintain a risk of hyperinflation?

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The answer is you cannot. As a legendary investor and Vanguard Group Inc. founder Jack Bogle said, "There is nothing to support bitcoin except the hope that you will sell it to someone for more than you paid for it," which is well illustrated in the producer surplus concept. As of today, bitcoin is by definition a highly speculative instrument, and the vast majority of individuals buying into it do not assess the risk of hyperinflation. But what they do is making a trade-off between saving money without incurring any risk of loss and putting it in bitcoin with possible great returns.

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