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In addition, there are various measures a government or a central bank can take to stop or at least slow down escalating inflation. If there was a sudden loss o
by DrJokepu 13y ago
In addition, there are various measures a government or a central bank can take to stop or at least slow down escalating inflation. If there was a sudden loss of confidence in BitCoin (or more realistically, people lost confidence in other people’s confidence in BitCoin), such hyperinflation would spread and escalate with the speed of light with nothing to stop it. This kind of volatility might be interesting for speculative investment purposes but not incredibly useful as currency.
Then again, it’s entirely possible that we will be proven wrong.
- alttab 13y agoThe bitcoin price won't stabilize until it's operation literally dictates demand. Once for all practical purposes everyday life is handled in satoshis, how does an economy expand?
- eru 13y agoJust like gold standard economies expanded in the 19th century?
- alttab 13y agoHow was that? Not being snarky, I'm just wondering what you mean.
- eru 13y agoI'm not sure how to answer that question. An answer would either be horribly generic or extremely long (or both). I suggest you start reading some history books (or just start on Wikipedia). Basically, a full bitcoin economy is a bit like an economy on a gold standard. Not perfectly, since gold is still being mined, and the rate of mining depends on its price.
- alttab 13y agoOk im following you. Maybe the differentiator is the divisibility of coin vs gold, and transferability.