I am believer but one thing bothers me after the last weeks crazy price increases. Two of bitcoins main selling points is ease of transfer from one party to another and low fees. It will be great for merchants and consumers etc, but the fact is that any1 who has spent bitcoin since its birth has lost money. They would have been better off holding on to them.
So in theory, you would imagine that more and more people will not spend bitcoin in the future and begin hoarding. This will drive up the price further for a time as supply runs dry (miners will hoard too of course).
So this leaves us only with digital gold with the only people buying are speculators and they too will become disillusioned as the promise of bitcoin taking on credit cards, cash, bank transfers western union fade.
Im sure this has been discussed many times here, but I had no good answer to a few doubters I ran into today
Also when they say bubble, responce ?
So in theory, you would imagine that more and more people will not spend bitcoin in the future and begin hoarding. This will drive up the price further for a time as supply runs dry (miners will hoard too of course).
So this leaves us only with digital gold with the only people buying are speculators and they too will become disillusioned as the promise of bitcoin taking on credit cards, cash, bank transfers western union fade.
Im sure this has been discussed many times here, but I had no good answer to a few doubters I ran into today
Also when they say bubble, responce ?
The "evil hoarding" argument has been getting thrown at bitcoin for years. That and the "OMG, look at how volatile it is!" argument.
Those making such arguments either have some alternate motivation to dislike bitcoin, or simply lack sufficient vision to see that these dynamics will eventually change. We are just at the beginning of the adoption curve for this new technology. Many of us have done the math on what bitcoin will have to be worth if it succeeds, and obviously choose to mostly hold on to it at present exchange rates. That said, we also spend it day-to-day (usually re-buying more to make up the difference). The increasing transactional economy (see blockchain.info's charts) shows that more people are actually spending bitcoin despite the savings motivation. As bitcoin gets closer to its equilibrium price, people will be more willing to spend.
Volatility will also drop tremendously at that point. We are in the raw, early, price-discovery phase right now, and it can be brutal. It will not always be so. Bitcoin will either succeed and stabilize in the thousands, or it'll fail and stabilize under $10. The current dynamics will be short-lived (though still years, probably).
It took 21 posts to get an answer that makes sense. ty sir
