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Would gold and silver be valuable if there was an infinite supply of them? You can't print/generate money indefinitely (unless you think quantitative easing is
by getsat 16y ago
Would gold and silver be valuable if there was an infinite supply of them? You can't print/generate money indefinitely (unless you think quantitative easing is a legitimate economic stimulus strategy and you happen to be the Federal Reserve).
If the desire for BTC goes up, so will its value. There's no problem here.
- maurycy 16y agoMoney is a mean of exchange that happens to be a store of value. A thing that punishes the exchange is not an effective money. In an economy with a finite amount of money, even potentially, the exchange is not rational given that the money's value grows over time. That's why the focus is on generating BitCoins.
- getsat 16y agoAfter all the BTC are generated, only market conditions and demand will affect its value. It's not guaranteed to deflate perpetually.
- rmc 16y agoYou can't print/generate money indefinitely Why not? Our current currencies (which are a lot more useful than BTC) are not backed by any finite commondity like gold.
- getsat 16y agoExactly, they're fiat currencies: http://en.wikipedia.org/wiki/Fiat_money http://en.wikipedia.org/wiki/Fiat_money