Isn't this a problem for Bitcoin-as-currency views?
We are touching on a concept known as Gresham's Law. It states that "bad money drives out good". For example, if there are two forms of money in circulation, which are accepted as having similar face value, the more valuable money will gradually disappear from circulation.if so,will you still mine bitcoin?
This is because people tend to hoard the good money (the one that holds value better) and spend the bad money now. I like to think of it as the bad money being net "sold" and the good money being net "bought". (the thing being net sold continues to go down in value).
The eventual conclusion here (history supports this) is that with enough time and enough devaluation no one will accept the bad money as payment and people holding the good money will be forced to use it to buy their goods and services.
A money that has matured to become dominant in a society can never increase forever in value against real goods and services because that would imply that holding the money is more economically valuable than say, eating, or heating your home. No rational economic actor actually desires money. They desire the things they think the money will buy them.
Because people like to spend money. If people were willing to forgo spending in order to get more buying power, they would all live frugally and invest all of their money.
Also, Bitcoin won't increase by 10% per year forever. Even in the very best case, global adoption, it would eventually stabilize or have very slight deflation.
Bitcoin increases in value if more users or more wealthy users. During the adoption phase price is expected to go up. If it were widely adopted, we would only see growth if other countries adopt it or if the countries using bitcoin experience economic growth. If people don't spend, you don't get economic growth.
Read about hard money. It's not an untested form of money. It self regulates to slow consistent deflation, proportional to slow consistent economic growth. Sustainability, long time horizons, better wages (more representative of gdp), etc.
You know,Many people borrow money, would you borrow in BTC (deflationary currency)? If you borrow, you effectively short the currency so it needs to be inflationary so you don't have to pay more in you value generation.
If you borrowed 100000 BTC (or possibly more) for building your house in 2010, how much you would have to repay now?
This is really so hard to answer..
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