Post
Topic
Board Economics
Re: Bitcoin worthless if not usable as currency!??
by
jackioflap
on 03/01/2014, 01:27:08 UTC
Remember gold was once used directly as currency. Its been a very long time but if we were to do so again the value of gold would drop quite drasticly. The USD used to base it value on the amount of gold was held in the country. But since then the USD has dropped in value dismaly because it just keeps getting printed. Theres more and more so as the amount in existence increases the value keeps getting flushed. If more gold were mined to keep up it wouldnt be tanking so hard. Unfortunatly there is only so much to be found.

BTC has no such issue. There will be only so much produced so inflation wont have as hefty an effect. But once it is all mined its stability will increase as well. I believe when that happens its role as an actual currency will be more plausable. Just like the old west gold rushes people are queing up to get theirs and it shot the value through the roof. When the rush was over and it went fom torrent to trickle the value leveled out. The same will happen to BTC. Then it will be more easily accepted.