Quote from: MatTheCat on March 23, 2014, 03:50:27 PM

Quote from: Ibian on March 23, 2014, 02:26:14 PM

Hyperinflation makes people use their paper money as wallpaper, kindling, toilet paper... why wouldn't bitcoin take over in such a scenario?

Because Bitcoin isn't backed by anything other than it's rate of convertability into fiat currencies.

If I could reliably convert Bitcoin into X ounces of precious metal, X gallons of Oil or X units of electrical energy, then we might be talking. Even if some government that I needed to pay taxes to required payment in Bitcoin, then Bitcoin might have a case as a 'pretender to the throne'. But as things stand, Bitcoin is nothing. It is a means of quickly transferring wealth around that works to the extent of liquidity in the market. Because the liquidity is provided almost entirely by speculators, the rate of conversion is prone to being highly volatile, thus rendering Bitcoin totally inappropriate for being used as a reliable unit of exchange.

Bitcoin is like you said, an excellent platform to transfer wealth. Bitcoin being the vessel of transfer is unaffected by the collapse of one or more articles of value.

Bitcoin is used to transfer wealth because it's efficient. Bitcoin will remain efficient regardless of what type of transfer it facilitates...

However, the market has been manipulated by fiat currencies. After fiat collapses we will be at square 1 again, the market will assess a new value to everything; not just Bitcoin...