Quote:
Originally Posted by BananaPancakes
I'm not sure you know what inflation is?
Bitcoin is programmatically deflationary. Each new bitcoin is more difficult to mine than the last, with a hard limit on the total amount available (21 million). There is no centralized body or government that can dump new bitcoin into the economy and devalue your holdings unlike with fiat currencies.
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This should be why Bitcoin will be doomed to fail. An inherently deflationary currency with exponentially increasing transfers fees should never be sold. If you make purchasing anything cheaper in the future it breaks the economy.
And this problem gets progressively worse as more people try to adopt it.
The other problem with Bitcoin is once Bitcoin is no longer mineable there is nothing to tether the value of a Bitcoin to the real world other than confidence. Currently the cost of mining the Bitcoin much like the cost mining gold sets a real value.
A non-fiat currency makes sense though Bit Coin in my opinion won't be it.
Currencies need to be mildly inflationary or they don't function as currency.