Quote from: johnyj on July 19, 2011, 04:45:29 AM

Quote from: hugolp on July 19, 2011, 03:39:32 AM

Quote from: johnyj on July 19, 2011, 03:01:17 AM

About the defaltion spiral topic, the human nature of thinking is: If this thing is going up in value, I'm going to hold to it and wait until it gets more valuable

Merchants are reporting bigger sales when Bitcoin price goes up, not when it goes down. This idea that people dont spend money when its value goes up is just a myth.

That's part of the picture, current system consists mostly non-business driven speculative transactions, and these kind of transaction always goes up when the price is rising (And when price crashes suddenly), could be different when the bitcoin really replaced credit card.

No. Read what I wrote. Merchants, real merchants selling stuff, are reporting increasing sales when the value of bitcoins goes up. The theory that people dont buy because the price of money goes up is a myth.