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Comment by bconnorwhite | Hacker News Reader

Most of the criticisms in this thread seem to be missing that Bitcoin is only layer 1. Bitcoin isn't Visa or cash - its gold. Rather than shipping gold across the Atlantic, large institutions will settle in a few minutes in Bitcoin. L2/L3/L4 solutions (built into Apple Pay, etc.) will allow for instant payments for coffee, allow for privacy similar to physical cash, etc.

Before this is possible, the price has to stabilize. Just takes time to go from $0.1 to $10M per coin. Once Bitcoin has eaten all the "store of value" value & only appreciates at the rate new wealth is created, L2/L3/L4 solutions will go mainstream.

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Except Bitcoin has no way to “stabilize”. Without central banks’ intervention and governance, even regular currencies would fluctuate like crazy. Unless the bitcoin world can come up with a Federal Reserve / ECB equivalent, it will continue to be a wild ride, which will effectively impede further uses. It will always be a speculation vehicle rather than a store of value.

I think the difference is that currencies fluctuate against each other, whereas if everything is priced in Bitcoin, its whatever you're pairing it against that's fluctuating. Goods (ex: loaf of bread for 200 satoshis for example) would stay stable

Currencies fluctuate against demand in the foreign exchange market, not against each other. Governments then step up to stabilize that demand. Bitcoin doesn't have that support so it fluctuates wildly, exactly like it's been doing since it's inception.

When you have a system that can only function if everything and everyone works in the same way at the same time, it will never actually function. The whole world is not going to move to Bitcoin, there will always be competing currencies - hence, there will always be speculation and uncontrollable fluctuations.

Humans are creativity machines. We are always expanding the amount of value there is in the world. The only way to have stable prices is to have a currency that inflates to match the amount of new stuff created.

But do we really want stable prices? Today you can buy a device a million times faster than 20 years ago for the same price. Imagine if everything were like that.

> Today you can buy a device a million times faster than 20 years ago for the same price.

And as you can see that massive deflation completely destroyed the computing industry, as everyone sat around waiting for next year's device that was faster and better for a similar price.

Wait, that didn't happen? People still buy things when there is deflation? No, that can't be, how else can I justify the morals of my money printer?

You joke but this is an actual factor that hardware companies have to proactively manage. Apple, for example, grants free replacements to people who bought laptops in the last few months before an upgrade is announced. Precisely because, otherwise, people will sit on their hands waiting for the new model.

But really, you can just look at bitcoin itself: it keeps appreciating on the upward swings, but people continue to not use it for everyday transactions - it's purely a speculation target. That's not what a currency should be for.

Oh, I agree that it has an effect, I just really doubt that we'll plunge into Great Depression part Deux if we have deflation for a few years.

Most people like buying things more than they like saving money.

It's been 12 years.

12 years is nothing.

I can't tell if you're agreeing by saying "its only been 12 years," or if you're disappointed by a 10 million % appreciation in 12 years

Bitcoin ain't sold. Gold had it's value being tradeable offline.

Price action would seem to agree with your typo

You could have said that 4 years ago too

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