As somebody who briefly studied and keenly read about economics, but cannot claim to be an expert, I'd like to say this:
- A fiat currency that is widely accepted and can be printed ad infinitum may be useful as a medium of exchange, but limited as a means for saving.
- A virtual currency that is inherently deflationary but not widely accepted is neither useful as a medium of exchange or saving, but Bitcoin has a few great potential advantages:
1) It has a potential to become widely accepted due to several qualities, for example: a) low transaction cost b) more anonymity c) more transparency (sounds contradictory, i know) d) more borderless = less biased towards western economies, like "hard" currencies. e) more digital/internet-age friendly f) more certainty (less chargebacks)
- If Bitcoin takes off, its value will go up a lot - perhaps a thousand fold over the next 10 years (= 2x every year). This kind of price change will probably lead to a lot of speculation, leading to many "bubble bursts", which is a challenge to the credibility of Bitcoin as a store of value and medium of exchange. Exciting times ahead.
-- Kjakman
Topic: Limitless currency vs bitcoin (Read 346 times)
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