[quote name=“Kramer1122” post=“39672” timestamp=“1386188881”]
One of my concerns is the wild fluctuation in price of bitcoin and cryptos in general. People are assuming it will settle down with little fluctuation, but I’m not sure what sound reasoning or facts that is based on. For example, I’m no economist but AFAIK the value of money to remain steady it’s creation must be in proportion to the provision of goods/services, balance of supply/demand etc. I think with BTC/FTC the max number of coins stops after a certain point, thus I don’t see how the price would settle. Of course, I can see it getting more stable, but not as stable as a paper currency might. I know fiat currency over long term is not stable, purchasing power declines, but it is still likely more stable than BTC.
If there is significant adoption of BTC, then I’d expect the price to keep rising steadily, so as an investment perhaps it is good (albeit high risk) but as an everyday trading currency I’m not so sure.
Perhaps others can shed some light on this. Thanks.
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I’ve certainly not made that assumption. From what I can see, your math is about right on. I DO expect it will continue to rise steadily… specifically I expect linear growth on a logarithmic scale. So far, I’ve been exactly right too, and I see no reason for this trend to not continue.
