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Board Beginners & Help
Re: Bitcoins heavy price movements unfortunately show the advantages of fiat currenc
by
Nath
on 13/06/2011, 15:32:03 UTC
Someone just moved 6.5% of all bitcoins in existence.  I don't think that any person or company has control over anywhere near 6.5% of the world's dollar market.
True. But:
- Even much smaller movements can cause enough trouble for a real currency.
- The hen and egg problem: To get Bitcoin into the position as a real currency it first has to prove its suitability - which will be very hard with these huge price fluctuations.
- One of the reasons no single entity besides the central banks controls those huge amounts of money is the central bank system in itself.