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> So, greater adoption = higher price. And higher price will tend to lead towards greater adoption.
by wwwtyro 13y ago
> So, greater adoption = higher price.
And higher price will tend to lead towards greater adoption.
- danielweber 13y agoWhy?
- vasilipupkin 13y agoBecause increasing price will raise its visibility and attract more people to invest in bitcoins - and the more people hold bitcoins the more merchants will want to accept them
- bunderbunder 13y agoThat line of reasoning isn't entirely dissimilar to what people were saying about real estate 10 years back.
- notdrunkatall 13y ago...and home ownership subsequently hit its highest rate ever.
- bunderbunder 13y agoIndeed. The trick is to predict the point at which you'll no longer be able to find a greater fool, and stop just short of it.
- genwin 13y agoIt's the musical chairs game.
- Nursie 13y agoBecause investors really love spending their rapidly appreciating assets...
- justincormack 13y agoWhy? If people are to use it for transactions, stability is useful. High prices do mean there is more to adopt, true.
- tlrobinson 13y agoAt least in the short term the media likes large numbers, Bitcoin gets more exposure and thus more users.
- martincmartin 13y agoIt's more accurate to say "increasing prices lead to higher adoption." It's a classic bubble. Remember in the early 2000s with people buying houses because "house prices have never gone down nationally?"
- kylebrown 13y agoBut people expect BTC prices to go down at any time. They also expect it to recover, so who knows. It brings to mind Peter Thiel's recent comment about "the idea of money being a bubble which never ends." Of course, never say never, but until then...
- justincormack 13y agoA bubble will not lead to adoption. As I said it is negative for people actually wanting to use it. If by "use" you mean participate in a pump and dump scheme, well sure. You don't need a cryptocurrency for that, you just need sufficient stupid people with cash to burn.
- dragontamer 13y agoOn the contrary. Higher price means more hoarding. Anyone who purchased _anything_ using BTC is kicking themselves right now. The current market conditions discourage spending of any kind.
- JamisonM 13y agoYes, I find it fascinating that a large number of people appear to want to live in a deflationary world when all instances of such that I am aware of have been economic basket-cases.
- dragontamer 13y agoIts because they're speculators, not enthusiasts. As soon as BTC crashes, they'll all be gone. But the BTC Enthusiasts will carry forward, and hopefully learn that encouraging this kind of speculation is harmful to the "currency" that they wish to create. I do think cryptocurrency has a future. However, the current price bubble is a _failure_ of BTC, not a success story. The only ones happy are speculators.
- JamisonM 13y agoI think the apparent alternative cryptocurrency is one that does NOT have a fixed supply and thus has stable inflation built into it, the puzzle of course is solving the problem of creating the math that can act in that way that can not be disrupted by an unexpected advance in computing power.
- dragontamer 13y agoOr you know, when people simply recognize that BTC miners are the "governing body" of BTC rules and regulations, and realize that to solve this issue is as simple as changing the rules of BTC so that the rate of inflation is more sane. But as long as BTCs are touted as a anarcho-capalistic wet-dream, no one will wish to see the truth. BTC Miners are the government. They can change the "law of BTC" extremely easily.
- TomGullen 13y agoA beautiful feedback loop