Quote:
Originally Posted by b0son
So bitcoin is more like gold than currency, which can be printed as needed to provide fiscal stimulus?
That surely puts a limit on its utility as currency per se? I cant see a nation relying on bitcoin itself, but perhaps some other form of digital currency that can be generated as needed.
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Not really... As there will never be more than 21,000,000 Bitcoins released or in circulation. Once this amount has been reached, no more can be mined.
New gold can always be found or mined.
Being a finite supply... If Bitcoin takes off, and If demand exceeds supply, then the price will rise like any other commodity.
It is estimated by some, that within 20 years, a Bitcoin could reach as much as US$100,000.
The two biggest threats to Bitcoin are:
1. Other emerging digital currencies that may be more accepted with the public and retailers and with better Blockchain security. Or even one of the hundreds already in existence.
2. Government regulation that may prohibit the use and making Bitcoin illegal as a currency in certain countries.
If a large respected player such as Paypal, Visa or Amex came out with a digital currency of its own and it was marketed properly... It could have the advantage of toppling most cryptocurrencies in circulation today.
The problem with cryptocurrencies today including Bitcoin is that only 1% of the world's population know or fully understand it, unlike shares and other traditional forms of investment.
I also think Bitcoin also needs to be accepted on the World's stock exchanges to be seen as a serious investment.
Bitcoin's has the "first mover" advantage and has been around for along time though.