3 ms·
> When Bitcoin becomes a pure cash equivalent, no one will care about the price. I believe that once the price becomes irrelevant, it'll trend downward Assumin
by imaginenore 12y ago
> When Bitcoin becomes a pure cash equivalent, no one will care about the price. I believe that once the price becomes irrelevant, it'll trend downward
Assuming world wide adoption scenario, that's mathematically impossible. People generally have some amount of wealth (most of us have it in a bank). If you have, let's say, 100 million people (a small fraction of the world really) using bitcoin instead of fiat, and, let's say, they have $2,000 worth of bitcoin on average (which is much lower than the current US average), it would mean that 1 bitcoin = $2,000 * 100M / 21M = $9523.8.
- aftbit 12y agoThe idea is that rather than hold your wealth in Bitcoin, you would continue to hold it in your local fiat, and only use Bitcoin for the payment protocol. Imagine if Paypal operated in "PPBUX" instead of local currency. Because of the large volume and high speed of transactions, PPBUX <-> USD would not be a very important number. You would only hold PPBUX for the few minutes required to make the transaction, during which it's pretty unlikely to move against you.
- imaginenore 12y agoYou missed the premise: "When Bitcoin becomes a pure cash equivalent".