Quote:
Originally Posted by Tinordi
Bcause bitcoin only releases a certain number of coins every year, it is an inherently deflationary currency if the market interest in using and keeping bitcoins continues to go up.
That defeats the point of a currency which is used to be a medium of exchange. If you know that a bitcoin will be more valuable a year from now then you have no incentive to spend it. That means that the whole currency will defeat itself once people realize that the value of currency is based on nothing but speculation.
That will be its downfall. Once they realize that currency has no use as a currency it's tits up.
But yes, it would be great to have a payment system that got around ridiculous bank-controlled currencies and exchanges. I would love the idea of a global currency that is fraud proof.
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Doesn't a Paypal account with US funds kind of solve any issues with banks and exchanges?