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Usage will rise once the value starts to drop. Why would anybody spend on real god as long as the value is soaring? This is of course only true for those curren
by JohnDoe365 13y ago
Usage will rise once the value starts to drop. Why would anybody spend on real god as long as the value is soaring? This is of course only true for those currently holding Bitcoins.
The current rise of Bitcoins' value is actually very unhealthy for the market.
- BrokenPipe 13y agoWhy would I spend bitcoin when the value is soaring? Because I have no alternatives eventually. See, let's say i start out with 5k worth of bitcoin and 5k worth of USD. The bitcoin go up in value while the USD go down via QE. As you suggested I avoid spending the 5k in BTC but thing is eventually I will run out of USD and even if I don't because say I got a day job source of USD income eventually I will want to buy something which is above my pay rate and I will have to use my btc. The same thing happens with gold or with an estate property, only thing, bitcoin is more liquid than that and unlike gold or a house I can decide to use a tiny part at anytime without selling or exchanging the whole cake. And with BTC merchant can offer discounts which may encourage the use of btc. Time will tell.
- JohnDoe365 13y agoYour argumentation is valid yet I bet that you are very unlikely to invest all your money in Bitcoins thus you will not run out of USDs or Euros, whatever. Let's see.