Bitcoin circulation | Bitcointalksearch.org

DeathAndTaxes

donator

Activity: 1218

Merit: 1079

Gerald Davis

Quote from: The_Gloomfrost on March 03, 2014, 01:09:55 PM

An economics professor once told me, "Once a commodity always a commodity."

He must have missed that one minor exception in the history of money.

Quote

This may change in 20, 40, maybe 100 years but we're nowhere near that.

This I agree with. Major changes never happen overnight. I always thought (and got laughed about it year ago) Bitcoin was looking at a 10 to 20 year road to mainstream adoption.

The "money chain" doesn't magically go from 100% fiat to 100% alternative. Companies that have Bitcoins will spend those instead of converting them if they can. If for no other reason than it saves them the cost of conversion. Our company has revenue in Bitcoins and we now pay namecheap for domain names and SSL certs in Bitcoins. Now namecheap might convert 100% of that to dollars but it still adds one link to the chain. Maybe some namecheap pays some of their costs in Bitcoins or some of their employees wish to take some of their salary in bitcoins. The chain extends one link at a time.

The_Gloomfrost

member

Activity: 90

Merit: 10

An economics professor once told me, "Once a commodity always a commodity."

Bitcoin's price will always be = some amount of USD, and as long as USD is bigger (is and most likely will be always), it'll essentially be a digital gold/store of value, that you can use as a payment mechanism.

You will have companies paying for everything in bitcoin, including salaries, but those salaries and what they pay for will still be = to what they're worth in USD.

This may change in 20, 40, maybe 100 years but we're nowhere near that.

exstasie

legendary

Activity: 1806

Merit: 1521

Well merchants are starting to get onboard which is helping people stop hoarding and spend their coins.
Its still pretty early in its stages, and many of the BTC holders are holding on for investment so preventing some of the circulation from occuring.

But it's getting there with more and more jobs, merchants using BTC.

grifferz

full member

Activity: 154

Merit: 100

I don't understand. Some (few) people do get paid their salary in bitcoin. People buy things with bitcoin. People buy bitcoin with fiat.

What do you feel is fundamentally wrong here?

If the price ever settles down then there will be a lot less interest in speculation.

corebob

full member

Activity: 238

Merit: 100

Yes I agree, but we need to make it viable for sellers to deal with bitcoin.
One way to do that could be to accept salary in bitcoin of course

Meuh6879

legendary

Activity: 1512

Merit: 1012

bank isn't for bitcoin currency.
you can't have circulation yet.

people must be ask at every seller if it takes bitcoin.

corebob

full member

Activity: 238

Merit: 100

I'm trying to say that for a currency to function, it has to circulate.
Imagine a currency having both inputs and outputs.
Right now the main source of input is fiat, and that can not last forever.

For example, for me to start spending my coins, I need some kind of steady income of coins.
If I had that I would happily spend coins today, knowing that I will receive new coins tomorrow for approximately the same value.

So, I am wondering if there are any plans or initiatives to create this "never ending wheel" that I believe a currency needs to become useful.

The_Gloomfrost

member

Activity: 90

Merit: 10

I don't understand the question

corebob

full member

Activity: 238

Merit: 100

Has anyone heard of any plans or strategies to get bitcoin into circulation?
I can't imagine btc becoming useful until I have some kind of steady income

Topic: Bitcoin circulation (Read 823 times)