4 ms·

I think btc is being more and more recognized as a store of value rather than a currency. Gold/stocks also fail as currencies and are also prone to speculation

• eldavido 9y ago
  Funny, that's exactly opposite of my perception. It seems too volatile to use as a unit of account or store of value, but almost perfect as a medium of exchange.
  • joshfraser 9y ago
    Are we looking at the same charts? https://coinmarketcap.com/currencies/bitcoin/ https://coinmarketcap.com/currencies/bitcoin/
  • kobeya 9y ago
    Mediums of exchange need to encourage usage, not hoarding.
    • nsomaru 9y ago
      Here's an interesting thought: you need a certain amount of liquidity to overcome the liquidity premium (https://www.investopedia.com/terms/l/liquiditypremium.asp https://www.investopedia.com/terms/l/liquiditypremium.asp). However, if the velocity of your asset is too high (nobody has incentive to HODL), then your asset becomes a medium of exchange because nobody wants to hold it due to price risk relative to fiat. So the best digital currency is one that is valuable to be _held_ but still has high transaction counts. The article that stimulated my thoughts on the matter: https://docs.google.com/document/d/1-ix9BDmGie8tPAwrfRKqe9CNUDnakmiwoh7tHfXeV9g/mobilebasic https://docs.google.com/document/d/1-ix9BDmGie8tPAwrfRKqe9CN...
      • kobeya 9y ago
        Do you mean something other than velocity? It doesn’t make sense I’m hat context. (I’m not opening a google doc for security reasons).
        • nsomaru 9y ago
          The article is great and gives context. Maybe use a service like Pocket or a proxy to open the link?
          • kobeya 9y ago
            Velocity is how quickly money changes hands. Did you mean volatility?