Post
Topic
Board Economics
Re: Limited coins and hoarding
by
btc_artist
on 04/11/2011, 20:38:17 UTC
All you'll get is analogies to gold, which is the heart of Bitcoin's problems as a currency.  Bitcoin isn't gold, neither Bitcoin nor gold are a currency, and neither would work as a global medium of exchange without major disruptions to world economies.
The analogy with gold as a global currency is valid.  But bitcoin improves on gold in that it is possible to easily buy/sell/trade in tiny fractions of one bitcoin.  So even though there is a finite supply, the value will simply increase until equilibrium is found.  Since bitcoins are easily divisible--and their divisibility could even be increased from the current 8 digits--it doesn't matter how high their value goes to reach equilibrium.