>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 g

>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