Quote from: toknormal on June 15, 2016, 06:15:46 PM

Quote from: Spaceman_Spiff on June 15, 2016, 06:05:59 PM

Why would someone buy USD when BTC is ubiquitously used in the future, because they want their currency to depreciate to gain stability? That makes no sense

It does make sense. They would buy USD because they need it to faciliate trade of goods and services which are denominated in that currency. It doesn't depreciate fast enough to inhibit its use for trade. Any longer term holdings are invested so they don't lose value. Thats just how the world works - look back in history of 100 years. The $USD has depreciated massively - about 98% or something, yet it didn't inhibit the most monumental period of growth the world has seen in its existence.

It's right that fiat currencies should depreciate in value over time because they're primary purpose is to facilitate trade and keep prices stable, not to store value (in the long term that is, obviously they need to be stable enough to store value in the short term).

Quote from: Spaceman_Spiff on June 15, 2016, 06:05:59 PM

Bitcoin will be stable (non-volatile) enough for commerce.

It won't be. It's academic. No fixed supply currency can be unless you have an economy that doesn't expand or contract in size. Also, if it was stable it wouldnt be doing its job. Many commentators criticise bitcoin for its volatility but it's that very volatility which indicates that it's successfully reflecting the balance of supply and demand.

you are assuming the BTC's value reflects Supply Vs Demand, and there for if the economy expands or contarts the value of each BTC MUST change too.
this is false.
because bitcoin reflects Supply Vs Demand Vs Speculation
right now speculation is driving prices higher
later Speculation will keep price stable as everyone Speculates that the value will remain stable.
speculators will PRICE IN the world's economic ups and downs. Cool

its actually quite easy to achieve and it will happen naturally.

here's a graph that will illustrate how Supply Vs Demand Vs Speculation will mean very stable prices in the future.

the red is the value of a BTC considering supply vs deamnd
the orange is the value of a BTC considering supply vs demand vs speculation