Quote from: Giraffe.BTC on November 04, 2011, 08:41:46 PM

Quote from: btc_novice on November 04, 2011, 08:38:17 PM

Quote from: Giraffe.BTC on November 04, 2011, 07:05:42 PM

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.

Gold is not a currency.

Splitting hairs. Gold has the potential as a currency and it has been used as a currency in the past. It is generally not used as currency for various reasons as outlined in the post that your replied to.

Gold has fallen out of favor as a medium or exchange because
* it can be counterfitted relativley easily
* the amount of gold in coin can be altered
* it is difficult to have small units of exchange. For example making a 1/1000th ounce coin would be inpractical.
* as a medium of exchange some value will be lost due to abrasion
* difficult to transport large amounts safely

Bitcoin doesn't have the issues that Gold has and thus would be a more viable global currency.