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That's why you don't spend it. You save it. See Their's Law, good money drives out bad.[0] People will hodl Bitcoin and spend fiat, driving up the price of BTC

by PKop 9y ago

That's why you don't spend it. You save it. See Their's Law, good money drives out bad.[0] People will hodl Bitcoin and spend fiat, driving up the price of BTC in terms of fiat until it absorbs some significant portion of global currency value. There are only 21 M coins; a deflationary crypto currency isn't for buying coffee or micro-payments. It is displaying similar qualities to Gold in countries where governments have debased the currency. [0] http://nakamotoinstitute.org/mempool/speculative-attack/ http://nakamotoinstitute.org/mempool/speculative-attack/

gowld 9y ago
How can this be? BTC is deflating far faster than USD is inflating, considering USD purchasing power. So BTC can't be picking up USD's weakness, it must be a speculative bubble. Were Beanie Babies good money driving out bad? https://qz.com/114753/meet-the-family-who-lost-100000-when-the-beanie-baby-bubble-burst/ https://qz.com/114753/meet-the-family-who-lost-100000-when-t...
- aqsheehy 9y ago
  Bitcoin is for the dark net markets; for everything else, there's MasterCard
- PKop 9y ago
  Because it's not at a steady state yet. At what price did you expect it to reach some semblance of stability? 0.10.. $10, $100... ? Well, there are some broad metrics we can think about. If Bitcoin become a sort of reserve currency, or a digital gold, or a combination of both, shouldn't its total market value be a proportion of what currently occupies that title? So, do the math. X% of Gold, or X% of reserve currency. Inject that value into 21 million Bitcoin (or the circulating supply at a given moment). Here's a valuation prediction applying Bitcoin daily trade volume of 10% of foreign exchanges which are $5 Trillion[0]. This would price BTC at $100,000. Only after it approaches somewhere close to these numbers, would you expect to see appreciation in the range of fiat inflation. That's how it can be. [0] https://www.cnbc.com/2017/05/31/bitcoin-price-forecast-hit-100000-in-10-years.html https://www.cnbc.com/2017/05/31/bitcoin-price-forecast-hit-1...

by PKop 9y ago

gowld 9y ago

How can this be? BTC is deflating far faster than USD is inflating, considering USD purchasing power. So BTC can't be picking up USD's weakness, it must be a speculative bubble. Were Beanie Babies good money driving out bad? https://qz.com/114753/meet-the-family-who-lost-100000-when-the-beanie-baby-bubble-burst/ https://qz.com/114753/meet-the-family-who-lost-100000-when-t...

aqsheehy 9y ago
Bitcoin is for the dark net markets; for everything else, there's MasterCard
PKop 9y ago
Because it's not at a steady state yet. At what price did you expect it to reach some semblance of stability? 0.10.. $10, $100... ? Well, there are some broad metrics we can think about. If Bitcoin become a sort of reserve currency, or a digital gold, or a combination of both, shouldn't its total market value be a proportion of what currently occupies that title? So, do the math. X% of Gold, or X% of reserve currency. Inject that value into 21 million Bitcoin (or the circulating supply at a given moment). Here's a valuation prediction applying Bitcoin daily trade volume of 10% of foreign exchanges which are $5 Trillion[0]. This would price BTC at $100,000. Only after it approaches somewhere close to these numbers, would you expect to see appreciation in the range of fiat inflation. That's how it can be. [0] https://www.cnbc.com/2017/05/31/bitcoin-price-forecast-hit-100000-in-10-years.html https://www.cnbc.com/2017/05/31/bitcoin-price-forecast-hit-1...