3 ms·

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.