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Compare this with the global economy. The number of Bitcoin users is still increasing, so the wealth is distributing. If you compare that with the global econo

by tete 9y ago

Compare this with the global economy. The number of Bitcoin users is still increasing, so the wealth is distributing. If you compare that with the global economy, the wealth is accumulating at a single point. https://upload.wikimedia.org/wikipedia/en/b/b8/Share_of_wealth_globally.png https://upload.wikimedia.org/wikipedia/en/b/b8/Share_of_weal... I do however agree that's a problem. I also think that gold and precious metals are doing good, despite being (currently, essentially) limited.

ianai 9y ago
You actually can’t compare bitcoin to gold and silver. The stock of gold and silver may appear constant,but th supply does actually grow. The supply grows in relation to their demand and current market factors. Bitco8n does have a hard limit. They’re not alike.
lokedhs 9y ago
In the global economy, resources are not constant. Every time you do some work, you add value to the system. The problem is that with bitcoin, the total amount of currency is fixed, which means that when value is added to the system, you the value of the bitcoin has to increase. You might think that not having inflation sounds like a great idea, but the problem is that unless the total amount of currency increases to match the value of the system you will not end up with zero inflation, you'll end up with deflation. Deflation is really bad, because it encourages people to sit on their cash instead of spending it, and an economy without spending means that more value is not added to the system. Of course, I am arguing against people who I have heard who suggests that bitcoin is all we need and it can take over all currencies in the world. That seems more or less impossible based on what I just said. Perhaps cryptocurrency is the future of finance, I have no opinion on that, but if it is, I don't see that it would be bitcoin.

by tete 9y ago

ianai 9y ago

You actually can’t compare bitcoin to gold and silver. The stock of gold and silver may appear constant,but th supply does actually grow. The supply grows in relation to their demand and current market factors. Bitco8n does have a hard limit. They’re not alike.

lokedhs 9y ago

In the global economy, resources are not constant. Every time you do some work, you add value to the system. The problem is that with bitcoin, the total amount of currency is fixed, which means that when value is added to the system, you the value of the bitcoin has to increase. You might think that not having inflation sounds like a great idea, but the problem is that unless the total amount of currency increases to match the value of the system you will not end up with zero inflation, you'll end up with deflation. Deflation is really bad, because it encourages people to sit on their cash instead of spending it, and an economy without spending means that more value is not added to the system. Of course, I am arguing against people who I have heard who suggests that bitcoin is all we need and it can take over all currencies in the world. That seems more or less impossible based on what I just said. Perhaps cryptocurrency is the future of finance, I have no opinion on that, but if it is, I don't see that it would be bitcoin.