4 ms·
The point about investment is that incentive to invest results in money being available for people who have the drive, energy and motivation to change the world
by kiba 16y ago
The point about investment is that incentive to invest results in money being available for people who have the drive, energy and motivation to change the world to realize their dreams, even if they have not done it yet. If money is not available for investment those people's dreams get shattered before they change the world. This is a Bad Thing. (And generally results in a stagnant economy and persistently high unemployment.)
In the first place, the bitcoin economy is experiencing a phrase of deflationary growth. There were little services and goods before the slashdotting. Now, there are more. The bitcoin economy is not stagnating.
The current experience of bitcoin should not be deflation for the simple reasons that bitcoins continue to be issued, and should be issued for very good reasons.
I assure you, my observation of the bitcoin economy is accurate. There are 7200 bitcoins being created each day, but the price of bitcoins aren't crashing. Demand for bitcoins are growing faster or keeping up with monetary inflation.
Mt. Gox, before the dollars become essentially worthless(thus invalidating Mt. Gox usefulness on indication of demand for bitcoin), reach a record high of 0.12 cents per bitcoin, with enormous amount of volume. 200,000 bitcoins were exchanged. Same thing for bitcoin market, though on a much lower scale.
- btilly 16y agoI submit to you that investment in the bitcoin economy is paid for in other currencies (eg dollars), not in bitcoins. Given that, the strength of the bitcoin economy has nothing to do with the availability of money for investment. And indeed a growth in value for bitcoins should drive investment in bitcoins, which leads to what you've observed. The dynamics would be opposite were bitcoins the primary currency.