I am thinking about Bitcoin becoming an internet protocol that could be used for other purposes, e.g. colored coins, proof of existence and other apps that would work over the Bitcoin/Blockchain layer. In order to work, these apps need Bitcoins as their "fuel", even the smallest transaction. But if 1 BTC = $10,000, then even the smallest transaction will be too expensive to incentivize the creation of apps.
If BTC = $10,000 then you can get 10 Nans (nanobitcoin) for $0.0001
This is too expensive to incentivize the creation of apps? 100 individual transactional units for $0.01?
Regardless, lets imagine that 1 BTC = $100,000,000. Then each transactional unit will cost $1. If that is "too expensive to incentivize the creation of apps", you know what will happen? One of two things:
- Demand will drop due to the lack of potential uses and the price of bitcoins will drop until it reaches an equilibrium where the incentivized uses create the demand that supports the price.
- People will find other uses that are incentivized at that price. The new uses will increase demand, and the price of bitcoins will increase until it reaches an equilibrium where the incentivized uses create the demand that supports the price.
This is when there could be consensus on mining more Bitcoins to decrease its value and give more "fuel" for apps.
-sarcasm alert-
Right. Those that are holding valuable bitcoins will create consensus to reduce the value of what they hold. Because they aren't willing to use their valuable bitcoins for apps, but they are willing to destroy the value of their valuable bitcoins and then use the reduced value for apps.
-end sarcasm-