Quote from: Amph on July 16, 2015, 10:12:34 AM

Quote from: loiterin9 on July 16, 2015, 10:07:59 AM

Quote from: Amph on July 16, 2015, 09:40:13 AM

Quote from: loiterin9 on July 16, 2015, 08:51:49 AM

Quote from: Amph on July 16, 2015, 07:32:35 AM

you're saying this only because the price isn't stable like other currency, but the price need plenty of time and many people to be stable

if the price would have been stable you would say the same thing? i doubt

Quote from: loiterin9 on July 15, 2015, 05:35:20 PM

Hmm currency.

Is bitcoin a store of valuy? I guess not? The only intrinsic value it has is the ability to move value around. If you do not exchange value into bitcoin i.e. USD/BTC it would be worthless.

it is a medium of exchange, which does not make a currency. Blockchain is a payment rail and bitcoin is medium of exchange.

Or explain to me what makes it a currency?

yeah it is a store of value unlike the fiat garbabe which have 100% infaltion, bitcoin is based on deflation which mean that its value will only grow at the end, how you can not consider this a store of value is beyond me

Deflation has negative consequences same as inflation. I agree that fiat world has intrinsic inflation caused by current monetary system where central bank levies an interest rate on all funds it lends to commercial banks and that what causes it. Hence the only way commercial bank can make money is by landing it further driving inflation. Bitcoin solves this but as the supply is limited you are right in long term it will cause deflationary pressure. In essence this means that a user/holder of bitcoin will be able to buy more with it at a later date if he/she holds on to it for longer as the value will go up. As in the examples of Japan. But this causes another problem, one of the key functions of money/currency is facilitate the exchange of goods and services and if bitcoin is not being used for that instead it is being kept as the value rises it's not performing it's main function as medium of exchange.

So as you can see these two features are interdependent and has direct impact on the value and volatility. At the moment I do not have answer, this is why I started this debate.

Thank you for joining.

i'm not really in agreement with the fact that deflation is bad because encourages people to hold only, and not to use their coins

the deflation can have place even if people use a system with a limited supply like bitcoin for their daily shopping, while many other join the party by buying more coins and thus making the price to rise in step by step, the intrinsic nature of its scarcity will feed its deflation, even more

the usage of those coins will not lead a dent on the deflationary nature of your enviroment, like in the case of bitcoin, it is entirely possible to have both, usage and deflation in the same system like it is bitcoin

Quote from: loiterin9 on July 16, 2015, 09:09:42 AM

Quote from: Anirban Sarkar on July 16, 2015, 09:04:53 AM

HMM BITCOIN IS A CURRENCY!!! AFTERALL IT A GOOD SERVICE WE CAN CONVRRT IT INTO OTHER CURRENY WITH ANY SUCH PROBLEMS!!!

IF you can't convert it, would you use bitcoin?

i would if there were shopping like amazon that accept it

but the main reason(i've already said this in another thread but i want to repeat it, because many think that here we dump only for fiat and we don't care about bitcoin), for me, for not using bitcoin right now, it's related to its price, its value is beyond mediocre

why i should waste my coins now for buying, let's say a GPU for my gaming rig, when in the future i can buy 10 with the same amount?

besides the fact that i don't want to dump, i don't want also, to spend bitcoin until it has a very good market cap, in fact i'm only dumping for emergencies...

Mate you answered your own question. Why would you spend bitcoin if you antisipate the value to go up. In deflationary situation that is always be the case and if the market adobt your perseption there would be no maket. That confirms bitcoin not to be a valit currecny.

well not i have a target at which i can spend it, that's the differnce, i'm not waiting indefinitely, and i'm sure many other are waiting for their price, right now the price is abysmally low in comparison of what we can have in the future

That's the case. If you perceive will be constantly rising you will only spend just for what you absolutely need because you know if just wait a little while longer it would cost you less. This is deflation and in the medium to long term this is detrimental to the economy as it would inevitably constrict. So, if you follow this thought chain bitcoin is not good for economy from that point of view. But as a method of moving value around it is generally a good thing as it would reduce the costs money remittance. However, will also take away profits of companies that are currently but will also shift those to be spent somewhere else.

Anyone care to share more thoughts?