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I would think a large majority of bitcoins would end up in the hands of people living somewhere with low interest rates - instead of parking their money in bank
by johnrob 13y ago
I would think a large majority of bitcoins would end up in the hands of people living somewhere with low interest rates - instead of parking their money in banks, they'll park it in bitcoins. The demand for investing - which applies across all currencies - could easily be greater than the demand to spend bitcoins.
Investment demand has caused deflationary problems in other areas too, specifically food prices when a lot of investment was made in certain agricultural futures.
- johnrob 13y agoReplying to my own comment, deflation isn't the worst thing that can happen to bitcoin IMO - unstable prices could be a bigger challenge. Since the market for bitcoins is not regulated, it could end up subject to all manor of tricks to create panics or booms. If the price fluctuates rapidly then timing the market becomes a burden of using the currency.