An economy built exclusively on bitcoin without other currencies would indeed fail to achieve a healthy 2-3% yearly inflation rate. But apples and oranges.
Bitcoin is deflationary by nature. One of the problems with it (scalability aside) is that who would want to spend an asset which keeps increasing in value?
So now Bitcoin is seen as more of a store of value. Which it actually seems to work pretty well for. A bit expensive to move around (but still, $20 is cheap compared to most value stores like land or gold).
not really. it's a "...peer-to-peer version of electronic cash would allow online
payments to be sent directly from one party to another without going through a
financial institution..." according to Satoshi himself.
7 comments
[ 2.9 ms ] story [ 30.2 ms ] threadFrom the little I have read, a healthy economy means a small amount of inflation.
Given that bitcoins are limited, it is impossible to have inflation.
How can we then say that Bitcoin is s good candidate for currency?
An economy built exclusively on bitcoin without other currencies would indeed fail to achieve a healthy 2-3% yearly inflation rate. But apples and oranges.
What’s its use case then?
So now Bitcoin is seen as more of a store of value. Which it actually seems to work pretty well for. A bit expensive to move around (but still, $20 is cheap compared to most value stores like land or gold).
not really. it's a "...peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution..." according to Satoshi himself.
Replace Bitcoin with any other commodity/security and this article is pure fluff.