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I'm not so sure about that. The bitcoin system is not closed. People have been using it to transact real world goods and services, which means that there is val
by allthenews 9y ago
I'm not so sure about that. The bitcoin system is not closed. People have been using it to transact real world goods and services, which means that there is value flowing into and out of bitcoin, such that a profit off of a sale in bitcoin does not necessarily imply an identical loss for someone else.
- fnord77 9y agoreal world currency expands and contracts, either naturally or via regulation. As more value is created in the world (say by turning sand into iphones), more money is created. bitcoin etc. can't. It is a major flaw.
- allthenews 9y agoThat is exactly what I am describing when I say that value flows into and out of bitcoin. There is nothing stopping bitcoin from "expanding and contracting" [I think you mean inflating and deflating]. At the very least something like money laundering has such an effect on bitcoin - because pre-laundered money does not have a 1:1 value ratio with clean money. Of course I'm sure there are more legitimate examples, although I wonder what percentage of BTC volume is laundering...
- r00fus 9y agoBitcoin acts like an asset not a currency. The term cryptocurrency is a bit ridiculous. It should be called digital-gold, because it behaves like that.