Post
Topic
Board Economics
Re: Why people are still buying BTC?
by
Jutarul
on 19/04/2013, 20:46:29 UTC
That's my point.
How many coins are lost (1 million out of 11 million or 10 million out of 11 million?)?
What created so much supply after the recent crash. I can't see any improvement in:
- transaction delay.
- transaction fee.
- security.

Which are the main keys to me...
The consensus model used by bitcoin prevents it from competing on
1) transaction delay
2) transaction fee for microtransactions

Use other means if you need quick payments and small percentage fees. However, there will be services on top of bitcoin, which allow you to do bitcoin-denominated transactions without going through the blockchain (a business model coinbase.com is working on, e.g. by providing user-user account transfers).

Regarding 3) security you have to distinguish between service providers and the security of the asset. As long as people depend on settling their final trade in some fiat currency, they will be subject to (in-)securities of the services operating at the interface. However, there are already plenty of things which do not require that step - with time, as merchants start to keep their earnings in bitcoins, this problem will fade away.

I think you're suffering from lack of imagination. Like people didn't know what the internet could be used for in the 90's. In hindsight it was obvious.