Quote from: inBitweTrust on March 28, 2015, 01:00:12 AM

Quote from: vince232 on March 28, 2015, 12:52:49 AM

yet the biggest problem why btc cant be adopted as a currency is because of its limited supply. meaning price would eventually go up because of scarcity thus making people not wanting to spend.
so PoS has an advantage over there.

I agree with most of what you said except the above. I understand we intuitively assume the above to be true based upon the fear mongering Keynsian economists have instilled in the public when they warn of a deflationary spiral. In practice bitpay has release data reflecting they see spikes in spending when Bitcoin rapidly appreciates (Or goes through disinflationary/adoption bubbles). We have been theorizing that this is due to the wealth effect being more powerful than ones hoarding instinct. When Bitcoin goes up in value people are more generous with tips and spend more because they are wealthier and everything has become cheaper.

Yup what you said is true that now people spend more when btc rises its value. But btc is only owned by a few people. But that would change if an entire country makes it their currency. As you can see people spend usd euros etc 1 because for daily living. 2. Value goes down because of inflation. So what do they do they invest their money to beat inflation rate.

But if you adopt btc as a national currency. Lets say you have 1 btc now. Current supply would be distributed to people. Then mining would take place until you reach max supply. You will be stuck at 20+ million coins forever. Let us say your 1 btc can buy a car now. But when max supply is reached and you need to accomodate all people to have btc as currency. The only thing that everyone can have btc is to increase the price so it can be divided to people.

Would you still spend btc if you know it would worth so much more on the future?