Post
Topic
Board Economics
Re: People are extremely biased towards bitcoin.
by
perfect999
on 02/01/2018, 11:24:29 UTC
Most people here and reddit will defend bitcoin no matter what instead of looking at the problems. Every time someone comments something about the speed or transaction fees they will just yell ''FUD'' or ''Another attack on bitcoin'' but it's not always that. I have been a strong supporter of bitcoin myself but we have to face it, it's not in a good position right now, sure the price is great but what else? Insane fees that are not getting solved any time soon? I know the demand is high but the ones that are buying are just buying to sell eventually not to support bitcoin, not to use it. The demand will eventually fade away and what do we have left? An outdated bitcoin that won't be able to compete with better coins.

I see LN as the only viable option to fix tx fee and time. Scalability issue is indeed at heights and these shit forks are only increasing the problem.

But I want to talk about the utility here. If you need a coin with utility as currency for everyday transaction, then even if fees goes down significantly, no one is going to use BTC for that because of the inbuilt deflation. As supply is limited, adoption is increasing and hence, price will rise. BTC has become a ""store of value"" than a currency.

For currency purpose we need a currency with little or no deflation like XRP with large supply. Bitcoin can never become that with 21 million supply. A little inflation is required for building a currency that people will actually use.
Why do we need inflation? You know what national banks are in collusion with the government use this mechanism? It is attempt for your account to close holes in the economy. It seems to me that the government should manage the economy so that we did not pay for their mistakes. That is why bitcoin has become so popular.
Why people have the mentality of inflation being a negative thing? Huge inflation is negative. But we need minor inflation.

""Inflation drives spending""

Suppose you have deflationary currency with which you can buy a car. But if you hold it for some months, you can buy 2 car. What will you do? Will you spend it? No. Same is the case with BTC.
In my country most people are unaware of inflation but they pay for everything without any queries and the officials also tell lie about the inflation rate. I think that bitcoin investment is only thing that keep people safe and secure about their future because of no involvement of governments. If the government imposes direct tax on bitcoin then investors will not earn so much money from their investment in bitcoin.