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"Who would dare purchase anything for 1 BTC when the value of that BTC could go up 10% the next day?" Early adopters. With the BTC/USD run-up to $550+, many e
by alste780 13y ago
"Who would dare purchase anything for 1 BTC when the value of that BTC could go up 10% the next day?"
Early adopters.
With the BTC/USD run-up to $550+, many early adopters who bought bitcoin when it was trading for a few dollars now have very high purchasing power; this will lead to spending, regardless of volatility.
As an example, imagine you purchased 1,000BTC when they were trading at a dollar. Your purchasing power was $1,000 back then. Today, your purchasing power is around $500K. Spending a bitcoin or two on Christmas gifts would make perfect sense to you.