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> The problem is Bitcoin is being treated as a commodity and not a currency. That's because that is what it is. Just like gold. (Which, besides mostly jewelry,

> The problem is Bitcoin is being treated as a commodity and not a currency. That's because that is what it is. Just like gold. (Which, besides mostly jewelry, has few other 'practical' application—modest use in industry and medicine.) > It's difficult to use Bitcoin as currency because its value keeps rising. And this is the problem with deflationary currencies, and was predicted a decade ago: * https://isps.yale.edu/news/blog/2014/06/the-perils-of-bitcoin-as-currency https://isps.yale.edu/news/blog/2014/06/the-perils-of-bitcoi... * https://en.bitcoin.it/wiki/Deflationary_spiral https://en.bitcoin.it/wiki/Deflationary_spiral > And when there are no more coins to be mined, when the value stops increasing: do you think everyone will suddenly agree to begin using it as currency? When there are no more coins to be mined (even if you want to get into slicing BTCs into satoshis) the value will increase: even more: if the demand for it goes up by (e.g.) 2% every year but your supply goes up 0%, what does Econ 101 tell us will happen? Even now folks are mostly hoarding: * https://www.coindesk.com/markets/2023/11/23/bitcoin-supply-inactive-for-a-year-hits-record-high-of-70 https://www.coindesk.com/markets/2023/11/23/bitcoin-supply-i...

itsalwaysgood 2y ago
Something is worth whatever someone else is willing to pay. If everyone thought of Bitcoin the way I do: its price would plummet. Fiat currency works because it's linked to a county's GDP, its credit (in the eyes of other nations). With such a system, you can put a price on commodity, like gold or Bitcoin. World trade is mostly done with the US dollar. Others are willing to trade the dollar because of belief in its issuing country's GDP and future economy. I understand that lack of faith in the US dollar and its 'money printer' are part of Bitcoin's rise... But that's a different topic in my opinion. Anyhow, gold is created in the heart of exploding stars, it looks good (we all love pretty, shiny things), it's rare. It's used in most advanced electronics (it's critical for sure, not sure about practical). Gold has always existed, and there's no doubt it will exist in the future. Bitcoin is math and ordered electrical charges. It's not being used the way it was intended. Its future is uncertain (quantum computing), and seems to be a big ponzi scheme. How are we expecting the value to keep increasing?

itsalwaysgood 2y ago

Something is worth whatever someone else is willing to pay. If everyone thought of Bitcoin the way I do: its price would plummet. Fiat currency works because it's linked to a county's GDP, its credit (in the eyes of other nations). With such a system, you can put a price on commodity, like gold or Bitcoin. World trade is mostly done with the US dollar. Others are willing to trade the dollar because of belief in its issuing country's GDP and future economy. I understand that lack of faith in the US dollar and its 'money printer' are part of Bitcoin's rise... But that's a different topic in my opinion. Anyhow, gold is created in the heart of exploding stars, it looks good (we all love pretty, shiny things), it's rare. It's used in most advanced electronics (it's critical for sure, not sure about practical). Gold has always existed, and there's no doubt it will exist in the future. Bitcoin is math and ordered electrical charges. It's not being used the way it was intended. Its future is uncertain (quantum computing), and seems to be a big ponzi scheme. How are we expecting the value to keep increasing?