Post
Topic
Board Speculation
Re: The Rise of Bitcoin Cost
by
niko
on 06/08/2012, 03:56:57 UTC
I too am curious to know why a rise in price is perceived as a problem.
Use as a medium of exchange is critical to Bitcoin's long-term success. Instability in value makes a currency harder to use as a medium of exchange. Imagine, for example, if you placed a large purchase on a Bitcoin credit card and the value of Bitcoins doubled. Or imagine if your rent was in Bitcoins and then the value of Bitcoins doubled.


Isn't it the case that with low (even if stable) prices, any large transaction in an exchange will move the market, thus causing volatility? The recurring joke here is that current btc economy cannot even sustain a fancy yacht or a house being traded without volatility.

The only way to a more stable and functional market is increase in "market cap" (a misnomer) - and since supply is set in stone, this means increase in exchange rates (influx of fiat capital).