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I'd say yes, of course. In an "ideal" bitcoin scenario, the more people get convinced that bitcoin is here to stay, the more it goes mainstream, the more people
by Udik 5y ago
I'd say yes, of course. In an "ideal" bitcoin scenario, the more people get convinced that bitcoin is here to stay, the more it goes mainstream, the more people will buy it driving its price to astronomical values, until it reaches an equilibrium. But by that time, you have created a large number of nominally rich people. So a lot of people will have a lot of money to spend. Say you want to buy a house, you can overbid by a larger margin, because you're bitcoin-rich. But the people you are competing with are too. So you end up paying much more for the same. You have effectively created inflation.