Post
Topic
Board Economics
Re: Why bitcoin's exchange rate won't drop too much
by
johnyj
on 16/12/2013, 04:50:21 UTC
So the guy did no productive work, but just by sitting on his Bitcoins he got so fabulously wealthy that he can buy the US Gross National Product wth only half his wallet.

Don't you feel that there must be something wrong with this scenario?

Being rich means that you own a disproportionate slice of the world's real wealth. You cannot increase your slice without reducing that of someone else.

The Bitcoin cabal cannot force people to use Bitcoin to buy things or services.  If doing so means giving their slice of the world to the Bitcoin cabal, people will use some other currency.

There are many wealth created by this way, and net worth is calculated by market price. Of course, whether you are able to cash out all of them for fiat money without a huge loss is another matter.

Take house for example, if you dump all the existing houses on the market, their price will drop to almost 0 since there is not enough money to buy all of them. In fact, just a small fraction of houses dumped on the market already created financial crisis and wiped out lots of paper wealth from those who holding a house. FED printed lots of money to artificially support the house price so that all those wealth counted by the form of house will not vaporize