Post
Topic
Board Altcoin Discussion
Re: PoS vs Pow
by
inBitweTrust
on 28/03/2015, 01:38:42 UTC
Would you still spend btc if you know it would worth so much more on the future?

Yes, in practice when bitcoin was shooting up 30-100 dollars a day (hyper deflation which is the moment when you expect people to be saving the most vs slowly growing in value ) is when bitcoin payment processors saw the largest jumps in purchases. This isn't spikes in transaction volume on the blockchain due to day trading but purchasing goods and services with bitcoin.

I spend bitcoin all the time and in fact I specifically spend it when its is going through a "deflationary spiral" or appreciating in value and than when bitcoin is losing value or acting inflationary I use my fiat. This way I am leveraging bitcoins volatility to insure I always buy goods and services cheaper.

I understand this may seem strange because we were always warned about the dangers of deflation but the data reflects that the Austrian school of economic thinking may be onto something.

I seriously doubt any country will ever adopt bitcoin as a national currency (inflation is how they steal from their citizens)but even if they do that doesn't change the data above.