rukawa Posted July 18, 2016 Share Posted July 18, 2016 The post below explains the situation well. Basically bitcoin will fail if it succeeds. Lets say Bitcoin succeeds. Everybody starts using it. Problem is that bitcoins tend toward a fixed total number which cannot be increased by design. So if it succeeds then people will start hoarding it because as the economy grows and demand for bitcoin as money increases so too will the value of bitcoins. As a result people will hoard them and as they hoard them bitcoins will increase in value still further since there will be less of them. Eventually people will stop using them as money because they won't be able to find them in sufficient quantities for everyday use. At this point the hoarders will have something that has no intrinsic value (unlike gold or silver hoards) and in addition no longer has value as a form of money since no one is will to accept it (try paying with Gold at Amazon). Eventually it will be realized that its worthless. So the correct value for a bitcoin is zero. https://smilingdavesblog.wordpress.com/2013/10/18/why-greshams-law-means-the-death-of-bitcoin/ Link to comment Share on other sites More sharing options...
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