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Good currencies aren't about divisibility or about holding value long term, they're about being useful for exchange. Being deflationary by nature makes Bitcoin
by gnaritas 13y ago
Good currencies aren't about divisibility or about holding value long term, they're about being useful for exchange. Being deflationary by nature makes Bitcoin a bad currency, but a good commodity (once it settles down). A good currency slowly inflates.
- rsynnott 13y agoNot even a good commodity; its extreme volatility makes it more like a penny stock.
- gnaritas 13y agoYes, true for now, but I'm assuming it'll settle down eventually after and if it goes mainstream. Edited above to reflect.
- rsynnott 13y agoBit of a chicken and egg problem, really; if you're selling something, you probably don't want to be using bitcoin unless you're either a True Believer, or your product has extremely high margins and you're confident that use of bitcoin won't cannibalise use of more stable payment options. If you make a 5% margin on your product, you don't want that to be erased by a currency shift. The big non-True Believer users thus far have largely been either illegal materials, or ultra-high-margin things (reddit gold, Humble Indie Bundle etc).
- gnaritas 13y agoI agree.
- polarix 13y ago"A good currency slowly inflates." This is the "common wisdom" which BTC assaults frontally.
- gnaritas 13y agoAnd it's proving the common wisdom true, as history has already done.