Quote from: sophyphreak on January 21, 2014, 12:07:58 PM

I am still looking for an answer to my original question; however, gold itself is not stable enough to be a good currency. In the past year I believe gold's inflation rate is 25% while its deflation rate over the past 5 years is 9% per year. This is to say that gold is too volatile to act as a viably currency. Generally accepted economics today aims for an inflation rate of between 1 and 3 percent per year in order to keep away volatility, hyperinflation, and deflation.

Gold isn't stable, thus it is difficult to see how a Bitcoin market cap that is similar to a gold market cap would cause Bitcoin to have a stable price.

I think the fluctuation comes from the low market cap. If that is the case, Bitcoin just needs to reach a higher market cap.

http://www.federalreserve.gov/faqs/currency_12773.htm

Total USD in circulation is $1.23 trillion

Once BTC reaches near that it should stabilize.

The way I see it BTC is still an infant. Once it grows up some more it will be alot more stable.

Right now it just takes some balls and a willingness to assume risk to accept bitcoin as a payment method. Wink

Drop a bowling ball in a pool and it will make a wave and ripples all the way to the sides of the pool. Drop a bowling ball in the ocean...