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Of course nobody uses Bitcoin as money today. My question was purely hypothetical, in the case Bitcoin ever becomes a more attractive store-of-value or reserve
by tradri 6y ago
Of course nobody uses Bitcoin as money today.
My question was purely hypothetical, in the case Bitcoin ever becomes a more attractive store-of-value or reserve asset than gold (maybe because its easier to transfer, store and verify ownership than gold) which I admit is a very big if.
- nabla9 6y ago> Bitcoin ever becomes a more attractive store-of-value or reserve asset than gold Bitcoin valuation can't increase infinitely. At some point, people want to sell them more than there is demand and the price either stabilizes or collapses.
- tradri 6y agoPersonally, I'm not invested in Bitcoin or any other altcoin so please don't assume I'm biased, but theoretically Bitcoin could increase in value indefinitely. There will always be people that lose their private keys and the population of earth/universe will (probably) also increase over time. Therefore, even when all the hype dies down, it is still designed to get scarcer and scarcer over time, regardless of the demand.
- smnplk 6y agoI am not sure if this is completely true. Bitcoin core can change via Bitcoin Improvement Proposal process. If 95% of miners vote for a specific BIP it gets into core. Now I am not sure what happens if 95% of miners are in China.
- tradri 6y agoYes, I assume that the core rules will not be changed, which requires an element of trust, making it more similar to FIAT currency than gold in that regard.