It would only "further" anything if people hold more coins than they usually hold.
I did say "If the balance of the long-term wants changes vs. the short-term wants/needs" and further explained it in the later post.
The other thing that is BS is the fact that in a large economy it won't cause swings anywhere regardless of how the short term wants/needs change.
How is it again that bitcoin has solved every economic problem known to man again? "Swings have never happened in large economies... DERP"
We would have less growth, less bubbles, less crashes. It would be boring in many respects but the economy would be much more sound. We would have real growth and real growth alone, not growth boosted by keeping cheap credit available at all times.
Right in about 12 years when almost all the bitcoins are mined, businesses will have only high-interest credit available to expand the bitcoin economy. The economy that
won't be expanding. While it's one thing to argue that inflationary currency may cause runaway growth and the business cycle, bitcoin will hinder the growth process every step of the way. Since the majority of bitcoin "growth" would actually just be existing economies adopting bitcoin, these existing economies must somehow be convinced that borrowing bitcoins is the way forward. Borrow the currency that is easier to pay back as time goes on, or borrow the currency that is harder to pay back as time goes on. Hrmm.
I'll do it for him: this is absurd. Nobody knows if Bitcoin will explode or not, grow or not. People will keep selling, in fact they will sell more the higher the price is. Have you not seen the Bitcoin market in the last 6 months? It is getting more liquidity. It is much more stable, much more mature. It is this liquidity that will make things better. It's still likely that we will experience more bubbles in the future but the overall stability will only increase with further growth and increased liquidity.
Wowee 6 whole months where bitcoin only doubled and a half in value just after exponentially growing and catastrophically falling. Looks stable to me! And broseph, the point I am making is
if bitcoin starts growing, not when. Imagine if walmart were to put in bitcoin checkouts and accept BTC for everything and in fact at a reduced price. Assume they just stored all revenue for a year, $400 billion or so. How many coins are for sale on the market right now? 1% maybe? I can't get on mtgoxlive to check for sure. Let's just say they're all for sale, $400 b/10m = 8,000x the value of today's bitcoin. If only 1% are ever available for sale, it could be 800,000x. And that is just one big business.
So far, to this date, Bitcoin adoption and Bitcoin growth is not phased by the volatility. It's growing, getting more serious, getting more liquidity, slowly but surely. Everything Etlase2 is talking about is empirically proven wrong by Bitcoin each and every single day. The single most important reason why Bitcoin-enthusiasts usually sidestep this whole issue is because it HAS NO MERIT. I will worry about this whole "issue" if it ever becomes an issue, meanwhile Bitcoin is doing quite fine just like this.
"So far, to this date, Bitcoin adoption and Bitcoin growth is not phased by the volatility." This sounds like a statement that requires facts. Where are you getting your bitcoin adoption numbers and where are you getting the opinion that non-adopters are unphased by the volatility? The issue has plenty of merit, bitcoin-enthusiasts sidestep it because the issue is ugly. Instead you'd rather kick the can like so many politicians do with the world's debt. Good show, works on suckers. Maybe if enough people say it has no merit others will believe it to be true.