Post
Topic
Board Speculation
Re: Counter to "Why Bitcoin is dropping ...buying." AMA format / doomsday debunked
by
B.A.S.
on 07/01/2015, 17:01:00 UTC
...
Money cannot be created out of nothing.
...

And yet there's Bitcoin Smiley


I agree, that's the whole point of Bitcoin. You cannot create more Bitcoin after 21 million. That's all there will ever be.

However, I'd argue Bitcoin is not money. It's a store of value that can be exchanged for currencies to buy things. This technology will one day become the placeholder many countries will exchange their own currencies to hedge economic ups and downs.

When the digital currency store of value price has a favorable exchange rate for some country's own currency, that country will exchange back to their currency it and deliver it to their economy through any number of ways to drive their economy. Conversely, if their economy is tanking, they will borrow funds at a favorable rate and hedge the loss by exchanging into the digital store of value. Once their economy flips, they make the exchange.

It's a genius idea.