Post
Topic
Board Economics
Re: Bitcoin is Becoming a Global Currency
by
deisik
on 11/05/2017, 12:11:06 UTC
I would argue that bitcoin as of right now is more of a tool used for speculation than an actual currency. the number of people who hold bitcoin in order to make capital gains greatly exceeds the number of people who actually purchases items with it

This is not a breaking news, anyway

Bitcoin has been that since it broke out of the DarkWeb tenets (where it had in fact been used as a currency, not as an investment asset). Most likely, it will remain a speculative asset, first, as long as it offers profit opportunities to traders (more specifically, to short-term traders), and, second, as long as transacting with it is not very convenient, especially for retail businesses which require instant and low cost payments. Both of these points are interconnected, at least, to a degree. For example, if Bitcoin would be able to offer ping-time payments, that would likely help stabilize prices somewhat over time due to wider adoption of Bitcoin by merchants particularly interested in fast, close to instant payments. Consequently, after prices stabilize a little, even more merchants may get interested in Bitcoin, and that again would provide a positive feedback loop to further and greater price stabilization