Post
Topic
Board Bitcoin Discussion
Re: I was asked a tough question, who can help me answer?
by
kokjo
on 21/07/2011, 13:51:44 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?

================

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

if a rational BTC user, thinks that he can gain more by investing his btc into somthing, he will do.
example:
rational BTC user, comes up with a great idea: a shop!
he buys 100 items for 10 BTC. each item has cost him 0.1 BTC
then he sells them for 0.11 BTC each, which gives 11 BTC in total.

see: a gain of 1 BTC. fast and eazy.