Quote from: johnyj on April 16, 2013, 03:04:50 PM

Quote from: hominin on April 16, 2013, 04:10:02 AM

wow i am amazed how blind investor mentality is! btw, that is not just towards you, there seems to be a lot of that blind mentality around; consumers and suppliers of goods and services are not concerned about the long term value of currency! what matters for that use, $->btc-> goods and services->btc->$, is that for successful trading (of goods and services), the $ at each end has to roughly match! y, sometimes, someone (with the volatility, rarely both) in that transaction will benefit but that is not much security for people whose only interest is $1=$1 within the lifecycle of the transaction. sure, this might not be applicable for all traders (of goods and services) but it represents a downhill direction where less and less people are using btc for exchange of goods and services. my question remains unanswered "how do you hold the exchange value of a currency that you can't buy or sell anything with?!"

That's what I mean, bitcoin is not suitable for use as a currency due to high appreciation potential. Of course you can invent many derivatives to hedge the exchange risk, but the price will never be stable due to limited supply

Modern money are all valueless digits but they hold their exchange value due to 2 things: Consensus and Trust. If bitcoin has gained enough consensus and trust, it will hold the exchange value. And if it has value, you can buy and sell anything with it

I think the bolded part is false. Consider if we just decide to talk and discuss microbitcoins (1/1,000,000) of a bitcoin. Suddenly there are lots of monetary units.

I recall in college working on a historical project, where Spanish gold was archived and stored. It was basically, poured into depressions in the sand made with a dinner plate. Each disk was worth a lot. And there couldn't have been that many of them (hundreds or thousands).

You see the error in logic. Both gold, and bitcoin are fungable.