Post
Topic
Board Bitcoin Discussion
Re: I was asked a tough question, who can help me answer?
by
Xephan
on 21/07/2011, 10:45:52 UTC
If Bitcoin is a currency with deflation property, that means BTC has to be appreciated (which in reality means BTC is a fancy collectible)

Therefore a rational BTC user will hold BTC rather than spend it.

but if no one spend BTC, then what's the point of such a currency?

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who can help me find out the fallacies in this reasoning? thank you!

Same reason why people buy food and stuff now even if they know they can get better/more next year. Otherwise, if the argument holds true, then nobody should be spending money on cars or computers since a better one will always be made next year therefore a "rational buyer" will hold out infinitely for the better item than buy an inferior one at any "now".