Post
Topic
Board Economics
Topic OP
A long term fundamental analysis of bitcoin
by
johnyj
on 20/04/2013, 22:41:58 UTC
The medium of saving property is the most important character of bitcoin. In a fiat money inflated world, there is no reliable long term medium of saving: House will depreciation, gold is not convenient to use, bond have risk of default, stock will crash when recession strikes ... Bitcoin is almost a perfect store of value due to its technology advantage and limited supply

In the future, when bitcoin becomes the medium of majority people's life saving, the value of bitcoin will still keep rising, because there is no limit to the amount that people can save. Maybe for 1% of the rich people, they have already saved enough, but 99% would still like to save for the future (Saving does not mean cutting spending, it is just a sign of very high productivity: You can't spend as much as you produce, so you save the rest into bitcoin). This will also solve today and future's problem of over production

Bitcoin will have the highest credit rating on the planet: Even a country/government can disappear, but a network protocol will not