Post
Topic
Board Economics
Re: What’s the nature of currency?
by
Mauser
on 27/08/2021, 07:38:51 UTC
I don't think people should be considering bitcoin as a gold in "digital world". This will just encourage people to use bitcoin as a store of value that will appreciate overtime. If this happens, we will never be seeing bitcoin used as a regular mainstream currency.

The problem is that bitcoins is not stable in is price, the volatility is quite high for a currency to be used in every day purchases. If the value of bitcoins fluctuates in a few weeks from 30 to 50,000 USD then people will not just spend their bitcoins to purchase a meal or some new clothes. As long as their is a big upside potential most of the people owning bitcoins will do so as investors. Which makes it very similar to Gold, there are many opportunities to actually use Gold to buy things, but people rather use it to store value and save money.