Quote from: the founder (FlexCoin) on September 27, 2011, 08:20:21 PM

That point is right evoorhees ... I know that... I think most of us know this.. (hopefully) ... but I had to make the point that we're doing things so weird (printing when value is decreasing) that it's never going to be a currency... it's going to widely rocket back and fourth like a commodity... Bitcoins officially at this stage are not a currency... it's oil, or natural gas, gold or silver.. some currency aspects.. but it's not a currency..

A good currency is a commodity - it is that commodity which is most widely desired and accepted in an economy. Currencies and commodities are not mutually exclusive, the former is simply the most widely desired latter.

Bitcoin in its current stage, and for the foreseeable future, will be in a volatile period of price discovery. The market is figuring out what these weird things are worth. We know they're worth somewhere between $0 and $1 billion each, right? Well, where exactly is the correct valuation? It will take much time, much speculation, and much correction both up and down before the volatility subsides.

The volatility of Bitcoin is not a bug, nor does it preclude ultimate adoption. It is an expected attribute of a commodity so revolutionary, uncontrolled, and new. Volatility will fall over time, with the Bitcoin being valued at $0, or something above that.