Post
Topic
Board Economics
Re: Bitcoin, Gold or Money?
by
gamalzour
on 27/11/2018, 06:17:52 UTC
So Bitcoin is designed so that the value of it will increase over time as opposite to traditional money in which the value of it will go down. But won't that make it more like gold instead of actual money?
By the prices of stuff going up in traditional money, it encourages keeping the goods and trading them, for example if someone owns a house that house's value won't just go down with time, it can go through time. But if goods were to keep getting lower in prices then it can as a result discourage buying them and trading. Which makes Bitcoin unusable as money. To keep your money safe of course you can store in a bank as they give you a small amount of interest.
Bitcoin has a limited supply and as time goes by and its popularity increases the prices can go higher and higher, making it less effective to be used as usual money. Imagine how would a shop keeper feel as their good will only decrease in price. And like traditional money which has banks Bitcoin doesn't offer much solution to this.
So even if bitcoin prices were to stabilize, wouldn't it be more like gold than a currency to use like traditional money? Gold is very similar in those terms to Bitcoin.
That’s not a question to be asked, all of them are good and you just have to make your choice based what will benefit you at the moment. Money is compulsory, Bitcoin and Gold are just means to save value or make extra money. So you need all of them. Right now Bitcoin wouldn’t be a good choice cause the price has been falling lately.