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>10K BTC would be worth ~$1.4M and the pizza will still be worth relatively the same as it was before I can't see how you arrive at this. No-one is going to bu

by iSnow 14y ago

>10K BTC would be worth ~$1.4M and the pizza will still be worth relatively the same as it was before I can't see how you arrive at this. No-one is going to buy a pizza for 10K BTC anymore, so clearly the worth has changed.

cinquemb 14y ago
For some perspective: in the mid 90's, i could buy a gallon of gas for about $1. Now it will cost about 4x that. Do i expect to show up at a gas station now with 4 dollars and get 4 gallons worth? No. Is it that hard for one to think: "Oh i have 1BTC now and it is worth $10000. It used to be worth $.001 when i bought a pizza. The pizza is still valued at $10, now I will spend ~.001BTC since that is what it is worth now. quel chance!" The worth of the pizza has stayed the same, the worth of the BTC has gone up. Come back next week and we'll practice paying for pizza in Euros! (unless you live in cyprus of course :P)
- iSnow 14y ago
  >Oh i have 1BTC now and it is worth $10000. It used to be worth $.001 when i bought a pizza Most likely the guy who got the pizza now thinks "gee, that other guy is now sitting on a BTC treasure that could buy him a house, a car and a lot of nice holidays. I got a pizza". BTC and $ (or €) are competing for value - and as long as the BTC story is intact, it makes more sense to hoard BTC and spend $$. When there is inflation, it makes sense to invest or consume your money, with BTC this does not make sense if you can hold off your purchase for a while. I therefore would not be surprised to see a tremendous spike in the BTC valuation but I have no idea what the distant future would be - it can only be a hard crash or the stifling of the BTC economy. Edit: see also: https://medium.com/money-banking/2b5ef79482cb https://medium.com/money-banking/2b5ef79482cb This is actually a serious problem, if you’re trying to put together a currency, rather than a vehicle for financial speculation. If the currency of a country ever fluctuated as much as bitcoins did, it would never be taken seriously as a medium of exchange: how are you meant to do business in a place where an item costing one unit of currency is worth $10 one day and $20 the next? [...] If millions of people started using bitcoins on a regular basis, the soaring value of bitcoins would actually be disastrous. You’ve heard of hyperinflation: this would be hyperdeflation
  - cinquemb 14y ago
    only if it were possible to spend dollars on the silk road… been using btc for the past 2 years, and will continue to do so because no(or very very small) processing fees :D those who want to get caught up on speculation/hoarding will do so. those who appreciate and value the utility btc offers over cash/credit/debit will continue to use them.

by iSnow 14y ago

cinquemb 14y ago

For some perspective: in the mid 90's, i could buy a gallon of gas for about $1. Now it will cost about 4x that. Do i expect to show up at a gas station now with 4 dollars and get 4 gallons worth? No. Is it that hard for one to think: "Oh i have 1BTC now and it is worth $10000. It used to be worth $.001 when i bought a pizza. The pizza is still valued at $10, now I will spend ~.001BTC since that is what it is worth now. quel chance!" The worth of the pizza has stayed the same, the worth of the BTC has gone up. Come back next week and we'll practice paying for pizza in Euros! (unless you live in cyprus of course :P)

iSnow 14y ago
>Oh i have 1BTC now and it is worth $10000. It used to be worth $.001 when i bought a pizza Most likely the guy who got the pizza now thinks "gee, that other guy is now sitting on a BTC treasure that could buy him a house, a car and a lot of nice holidays. I got a pizza". BTC and $ (or €) are competing for value - and as long as the BTC story is intact, it makes more sense to hoard BTC and spend $$. When there is inflation, it makes sense to invest or consume your money, with BTC this does not make sense if you can hold off your purchase for a while. I therefore would not be surprised to see a tremendous spike in the BTC valuation but I have no idea what the distant future would be - it can only be a hard crash or the stifling of the BTC economy. Edit: see also: https://medium.com/money-banking/2b5ef79482cb https://medium.com/money-banking/2b5ef79482cb This is actually a serious problem, if you’re trying to put together a currency, rather than a vehicle for financial speculation. If the currency of a country ever fluctuated as much as bitcoins did, it would never be taken seriously as a medium of exchange: how are you meant to do business in a place where an item costing one unit of currency is worth $10 one day and $20 the next? [...] If millions of people started using bitcoins on a regular basis, the soaring value of bitcoins would actually be disastrous. You’ve heard of hyperinflation: this would be hyperdeflation
- cinquemb 14y ago
  only if it were possible to spend dollars on the silk road… been using btc for the past 2 years, and will continue to do so because no(or very very small) processing fees :D those who want to get caught up on speculation/hoarding will do so. those who appreciate and value the utility btc offers over cash/credit/debit will continue to use them.