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"Why did you buy a bitcoin?" "Because I don't want to enter too late!" The absolute problem with bitcoin is, is that it cannot be used as a currency. If one bi

"Why did you buy a bitcoin?" "Because I don't want to enter too late!" The absolute problem with bitcoin is, is that it cannot be used as a currency. If one bitcoin can buy you one "x" today, two "x" tomorrow and in a week only half an "x", what is the point of spending it? Its value fluctuates way too much and that's why so many people are getting on board. They want to be in the elevation towards another all time high. I am not saying that Bitcoin does not have a future, but key in this future is that all those investors and startups on the get-rich-quick-with-a-very-high-potential-to-loose-a-lot-scheme have to abandon ship. The value of Bitcoin has to stabilize because at this point it is not a viable currency. Currently it is just an asset so many people are interested in, which drives the price only further up. As soon as it stabilizes or drops we will see what it will d o with Bitcoin its popularity and acceptance for other goods and services.

DevX101 13y ago
When don't you spend all of your USD money today since inflation will make it worth less tomorrow?
- thesimpsons1022 13y ago
  to be fair, that comparison isn't too valid. Look at the wild yearly fluctuations in bitcoin, compared to the steady rate(3 percent) of inflation of the dollar throughout history. On the other hand, OP is wrong because bitcoins will eventually slow down massively in production(almost to a halt) and stabilize at that point.
  - pearjuice 13y ago
    >OP is wrong because bitcoins will eventually slow down massively in production(almost to a halt) and stabilize at that point Eh, quite the contrary. If this rate of growth continues and production becomes 0, it will not stabilize at all because demand increases yet supply stays constant. Which results in the existing supply getting worth even more. This will make it an hoarded asset even more still not able to function as a currency as fluctuation will still be too drastic.
    - thesimpsons1022 13y ago
      that is debatable, as is anything economic. I as a Keynesian would agree with you but Austrians would disagree.
  - novalis78 13y ago
    I was also wondering if - at a future point where bitcoin adoption is more wide spread - could not the entire supply chain be "paid" in a matter of milliseconds? Allowing the prices to fluctuate quite naturally. Should not that be especially less of a problem when one bitcoin might be worth as much as, say, an entire city's internet infrastructure (and thus not even up for speculation anymore) and price fluctuations occur in the range of satoshis? The deflationary nature of the currency, turning private individuals into mini-banks, turning greed on to saving and thus optimizing investments and falling prices for economic value creation - aren't those attractive possibilities for a "bitcoin" dominated global economy?
- Nursie 13y ago
  People do spend nearly all their USD. It's called investment. BTC, as a main currency, would exert a negative pressure on investment.
erikpukinskis 13y ago
> If one bitcoin can buy you one "x" today, two "x" tomorrow and in a week only half an "x", what is the point of spending it? Well let me blow your mind a little bit: I own some Bitcoin, and I've been spending bitcoins every month for the last four or five months to pay my rent and other living expenses. And I'm not "cashing out" because I think there's a bubble that will burst. I'm as bullish on Bitcoin as anyone. I fully expect it to hit $10,000 within the next 10 years. I think there's a good chance it'll one day be 10% of the Gross World Product, which would mean they'll be $500k each. So why am I selling Bitcoins to pay rent? Because I have enough that I can hold onto some of them, enough to be a worthwhile investment, and at the same time sell some off in order to allow me to work on my passion project. That's worth more to me than the abstract possibility of a large windfall in the future. Hoarding doesn't make sense if you're a human being. If you're a human being, at some point you're like "Fuck it, I'm buying that JetSki!"

DevX101 13y ago

When don't you spend all of your USD money today since inflation will make it worth less tomorrow?

thesimpsons1022 13y ago
to be fair, that comparison isn't too valid. Look at the wild yearly fluctuations in bitcoin, compared to the steady rate(3 percent) of inflation of the dollar throughout history. On the other hand, OP is wrong because bitcoins will eventually slow down massively in production(almost to a halt) and stabilize at that point.
- pearjuice 13y ago
  >OP is wrong because bitcoins will eventually slow down massively in production(almost to a halt) and stabilize at that point Eh, quite the contrary. If this rate of growth continues and production becomes 0, it will not stabilize at all because demand increases yet supply stays constant. Which results in the existing supply getting worth even more. This will make it an hoarded asset even more still not able to function as a currency as fluctuation will still be too drastic.
  - thesimpsons1022 13y ago
    that is debatable, as is anything economic. I as a Keynesian would agree with you but Austrians would disagree.
- novalis78 13y ago
  I was also wondering if - at a future point where bitcoin adoption is more wide spread - could not the entire supply chain be "paid" in a matter of milliseconds? Allowing the prices to fluctuate quite naturally. Should not that be especially less of a problem when one bitcoin might be worth as much as, say, an entire city's internet infrastructure (and thus not even up for speculation anymore) and price fluctuations occur in the range of satoshis? The deflationary nature of the currency, turning private individuals into mini-banks, turning greed on to saving and thus optimizing investments and falling prices for economic value creation - aren't those attractive possibilities for a "bitcoin" dominated global economy?
Nursie 13y ago
People do spend nearly all their USD. It's called investment. BTC, as a main currency, would exert a negative pressure on investment.

erikpukinskis 13y ago

> If one bitcoin can buy you one "x" today, two "x" tomorrow and in a week only half an "x", what is the point of spending it? Well let me blow your mind a little bit: I own some Bitcoin, and I've been spending bitcoins every month for the last four or five months to pay my rent and other living expenses. And I'm not "cashing out" because I think there's a bubble that will burst. I'm as bullish on Bitcoin as anyone. I fully expect it to hit $10,000 within the next 10 years. I think there's a good chance it'll one day be 10% of the Gross World Product, which would mean they'll be $500k each. So why am I selling Bitcoins to pay rent? Because I have enough that I can hold onto some of them, enough to be a worthwhile investment, and at the same time sell some off in order to allow me to work on my passion project. That's worth more to me than the abstract possibility of a large windfall in the future. Hoarding doesn't make sense if you're a human being. If you're a human being, at some point you're like "Fuck it, I'm buying that JetSki!"