It's really not fair to dig these things up and call people haters for doubting it.
I bet the list of failed companies and "haters" who called it accurately is much much bigger.
Although I do like the nostalgic value of these posts.
I bet the list of failed companies and "haters" who called it accurately is much much bigger.
Although I do like the nostalgic value of these posts.
What the hedge funds you are talking about assume is that investors in biotech companies value them more than they are worth. It may sound similar to what you said, but really is a very different assumption.
Customer USD -> Customer BTC -> transfer -> Vendor BTC -> Vendor USD
Customer BTC -> Merchant BTC: $0.06 (transaction fees, currently abnormally high due to price spike)
Merchant BTC -> Merchant USD: 0.99% (Bitpay)
Total: 1.99% + $0.24
Compare: credit cards and Paypal (2.9% + $0.30)
So even there it works out fine.
And I can already transfer to other individuals for no charge.
> And I can already transfer to other individuals for no charge.
Within your own country/a few other countries like it. Transferring money across borders, especially outside the west is quite a bit harder than you'd think.
Crypto-currency good. Bitcoin not so much.
And the value of bitcoin won't deflate forever. Eventually the price will stabilize.
And if BTC were to become (for instance) a primary currency for a country, and that country were to experience economic growth, then deflation must necessarily continue.
Secondly there are many of us who consider a currency that can be centrally adjusted as part of economic stabilisation to be a very good thing.
Third, in an expanding economy, a deflating currency steals wealth from the productive and hands it to hoarders.
So yeah, it's pretty useless as far as I can tell.
People are voluntarily paying them for their coins because they, for whatever reason, value them. You can say that's silly but it's not like you are being forced to buy bitcoins or anything.
>And if BTC were to become (for instance) a primary currency for a country, and that country were to experience economic growth, then deflation must necessarily continue.
Isn't the same true for any other finite resource? Everything will deflate/increase in value relative to rest of the economy.
I'm saying it would be a bad idea to adopt as a de-facto currency, that's all.
>> Isn't the same true for any other finite resource? Everything will deflate/increase in value relative to rest of the economy.
Currency isn't and shouldn't be a resource, it's a medium of exchange. If BTC is a resource then cool, but lets stop pushing it as a currency.
Well why not? A medium of exchange is a resource. There are exchanges and markets for currencies, people speculate on them, etc. They are definitely a resource.
It's important to realize that all currencies, including Bitcoin and the USD, are only as valuable as the stuff I can buy with them. There's no point in having a million dollars, if I can't buy anything with it. That makes currencies distinctly different from "resources".