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I believe we'll see some form of inflation through the introduction of new currencies. when the price (ie. deflation) of one cryptocurrency becomes too high oth
by jcfrei 14y ago
I believe we'll see some form of inflation through the introduction of new currencies. when the price (ie. deflation) of one cryptocurrency becomes too high other currencies will jump in. the outcome however is unclear, because we are now at an unprecedented point in history. because of the openness of the bitcoin protocol everybody has now the possibility to create his own currency - and the price of adopting a new currency will become marginal for businesses, thanks to new APIs. I have no idea what the long term equilibrium will be.
- Eliezer 14y agoSince Bitcoin can be subdivided and is used (rather than held) primarily as a medium of exchange, there's no reason for increased price in dollars to decrease its use as a medium of exchange... let alone a store of value. Unfortunately.
- bencoder 14y agoIn testament to this, Litecoin, a bitcoin-alike that creates 4x as many coins and has been designed to be harder to do ASIC mining, has just recently gone above $1